Key Takeaways
- Okta delivered Q1 FY2027 earnings per share of $0.91, surpassing the Street’s $0.85 forecast, while revenue reached $765M versus $752M projected
- Shares skyrocketed approximately 27.7%, climbing above $115 and breaking through the prior 52-week peak of $107.84
- Wall Street firms raised their price objectives across the board, with targets spanning $100 to $130
- The company’s current remaining performance obligations (cRPO) expanded 12% from last year, outpacing the 10% Street forecast
- Management increased all full-year FY2027 projections and highlighted robust momentum in AI Agents adoption
Shares of Okta (OKTA) rocketed nearly 27.7% higher on Thursday following the identity security platform’s stronger-than-anticipated fiscal first quarter 2027 financial results. Trading around $115.94, the stock blasted through its prior 52-week peak of $107.84, pushing the company’s valuation to roughly $20 billion.
The enterprise software provider posted earnings per share of $0.91, eclipsing analyst estimates of $0.85 by approximately 7%. Total revenue reached $765 million, exceeding Wall Street’s $752 million projection by around 1.7%.
The company’s current remaining performance obligations — a critical metric signaling future revenue streams — expanded 12% compared to the same period last year. This growth rate maintained the pace from Q4 and surpassed both internal projections and Wall Street’s 10% consensus.
Looking ahead to Q2, Okta forecasted cRPO growth of 11% year-over-year, again outperforming the 10% analyst consensus and representing a one-percentage-point improvement over Q1 guidance. Management elevated every metric in its full-year FY2027 financial outlook.
Wall Street Responds With Target Hikes
The quarterly performance sparked widespread upward revisions to price targets among sell-side analysts.
Roger Boyd at UBS elevated his price objective to $130 from $115. DA Davidson similarly increased its target to $130 from $110, though the firm maintained its Neutral stance. Raymond James analyst Adam Tindle delivered one of the more substantial adjustments, boosting his target to $115 from $85.
Matthew Hedberg of RBC Capital Markets raised his forecast to $122 from $108. Cantor Fitzgerald adjusted upward to $125 from $100. Stifel moved to $120 from $92. Jefferies also set a $120 target. Mizuho’s Gregg Moskowitz, who maintained his Buy recommendation, lifted his objective to $110 from $100 — though this now trails the current trading price.
Wells Fargo analyst Richard Poland increased his target to $100 from $85.
Jefferies analyst Joseph Gallo, identified by TipRanks as the top-ranked analyst covering OKTA, maintains a Buy rating with a $120 price target. His track record on the stock shows a 100% success rate over one year with an average gain of 15.57%.
AI Agents Emerge as Catalyst
DA Davidson highlighted AI Agents as demonstrating compelling early adoption momentum. The firm anticipates this technology, alongside continued sales team productivity gains and improving Okta Identity Governance uptake, could fuel accelerating cRPO growth in coming quarters.
Mizuho’s Moskowitz attributed the impressive quarter to strength among major enterprise clients and successful new product launches.
Stifel emphasized expansion in enterprise-specific performance indicators. Jefferies spotlighted the increase in calculated remaining performance obligations as a particularly encouraging signal.
Despite the predominantly optimistic sentiment across analyst coverage, DA Davidson’s team retained a Neutral rating even while lifting their price target, noting that valuation appears stretched compared to InvestingPro’s Fair Value assessment at present levels.
Trading at $115.94, OKTA sits approximately 8% above its former 52-week high.
