Okta, Inc. (NASDAQ: OKTA) Q1 2026 Earnings Call | 05/28/2025

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Okta, Inc. reported Q1 2026 results on May 28, 2025, delivering better-than-expected revenue and earnings but adopting a cautious outlook amid macroeconomic uncertainty. Total revenue for the quarter rose 12% year-over-year to $688 million, surpassing analyst estimates and driven by strong recurring subscription revenue, which accounted for $673 million (98% of total). Earnings per share (EPS) came in at $0.86, beating the consensus forecast of $0.77, while net income swung to $62 million ($0.35 per share) from a net loss of $40 million a year ago. Gross margin remained robust at 76.3%, and Okta reported record operating profit and another quarter of strong free cash flow. Cash and cash equivalents increased 53% year-over-year to $494 million, and short-term investments grew 12% to $2.23 billion, reflecting healthy liquidity and disciplined capital management. The company’s balance sheet strengthened, with liabilities down 7% and equity up 10% from last year. Operationally, Okta’s new product launches—including Identity Governance, Privileged Access, and Identity Security Posture Management—along with suite-based pricing, contributed to strong cross-sell and upsell activity. The company saw a 20% increase in customers with over $1 million in annual recurring revenue (ARR), with particular strength in large enterprise and U.S. public sector deals. However, sequential subscription revenue growth was modest at $3 million, the lowest since Okta’s IPO, and management flagged a more conservative approach to guidance due to ongoing economic headwinds and anticipated sequential declines in current remaining performance obligations (cRPO). Despite the earnings beat, Okta’s stock fell over 12% in after-hours trading as investors reacted to the company’s steady guidance and cautious commentary on the macro outlook. Management reaffirmed its full-year revenue growth target of 9–10% and expects a non-GAAP operating margin of 25% and free cash flow margin of approximately 27% for FY2026. Outlook: Q2 2026: Revenue growth guidance of 10–11% year-over-year FY2026: Revenue growth of 9–10%; non-GAAP operating margin of 25%; free cash flow margin of ~27% Continued focus on innovation, operational efficiency, and large enterprise expansion, with prudent guidance reflecting macroeconomic risks #Okta #OKTA #EarningsCall #Q12026 #IdentitySecurity #SubscriptionRevenue #Guidance #EnterpriseSoftware #Investing #InsideTicker