OKTA Shares Rise After-Hours On Strong FY27 Outlook Driven By Large Deals

• For Q4, the company reported total revenue of $761 million, marking a growth of 11% year-over-year.
• Subscription backlog was $4.827 billion, marking an increase of 15% year-over-year.
• The company ended the quarter with cash, cash equivalents, and short-term investments of $2.553 billion.

Shares of Okta Inc. (OKTA) rose 2% after hours on Wednesday after the company forecast full fiscal 2027 revenue and earnings higher than Wall Street expectations, following a positive fourth quarter report.

The cloud-based identity and access management platform reported Q4 total revenue of $761 million, marking a growth of 11% year-over-year, and above an analyst estimate of $749.50 million, as per Fiscal.ai.  

Subscription backlog was $4.827 billion, marking an increase of 15% year-over-year. Of this, $2.5 billion is expected to be recognized over the next 12 months, the company said.

Adjusted and diluted earnings per share in the quarter was $0.90, above an estimated $0.85. The company ended the quarter with cash, cash equivalents, and short-term investments of $2.553 billion.

Okta’s Outlook

For the first-quarter (Q1) of fiscal 2027, the company expects total revenue of $749 million to $753 million, and adjusted and diluted net income of $0.84 to $0.86. Analysts were expecting revenue of $754.98 million, and earnings per share of $0.87.

For the full year, Okta expects total revenue of $3.17 billion to $3.19 billion, in line with an estimated $3.17 billion. Meanwhile, the company said it expects adjusted and diluted net income per share of $3.74 to $3.82, beating an estimate of $3.67.     

“Large deals, large customers,” CEO  Todd McKinnon said when asked about the two things driving Okta.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around OKTA shares rose from ‘bullish’ to ‘extremely bullish’ territory over the past 24 hours, while message volume increased from ‘low’ to ‘extremely high’ levels.

OKTA stock has dropped 34% over the past 12 months. 

Read More: Webull Stock Falls As Q4 Profit Miss Disappoints Traders

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