| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 12 | 99.7x | 17.8x | Bottom tier | |
Growth | 84 | 11.2% | 7.1% | Top tier | |
Quality | 75 | 2.8% | 4.5% | Top tier | |
Safety | 93 | — | 2.6x | Top tier | |
Capital Return | 84 | — | 2.12% | Top tier | |
Momentum | 98 | 59.4% | 2.9% | Top tier | |
Sentiment | 74 | 27 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Okta provides an independent identity and security management platform to more than 20 thousand customers, with its core businesses spanning Workforce Identity and Customer Identity, alongside governance, privileged access, identity threat protection, and AI agent security products. The company relies on selling its solutions to enterprises, and the breadth of adoption is reflected in having more than 600 customers with annual contract values exceeding $1 million, while partnerships help increase average deal size and improve close rates; channel partners participated in the 20 largest deals during Q2 of fiscal year 2027.
In Q2 of fiscal year 2027, revenue reached $805 million, gross profit was $641 million, net income was $116 million, and earnings per share were $0.65. This equates to a gross profit margin of approximately 79.6% and a net income margin of approximately 14.4%, compared with revenue of $765 million, gross profit of $595 million, and net income of $74 million in Q1 of fiscal year 2027. On a trailing twelve-month basis for fiscal year 2027, Okta recorded revenue of $3.1 billion, gross profit of $2.4 billion, and net income of $296 million.
Performance was driven by broad strength across the Workforce Identity and Customer Identity platforms, with particular contributions from large enterprises, partners, and new products. New products represented approximately 30% of bookings in Q2 of fiscal year 2027, with Okta Identity Governance the largest contributor among them, while professional services declined to approximately 1% of total revenue after more implementation work was shifted to global integration partners.
The stock carries a Buy consensus and an average analyst target of $175.37, a level near the upper end of its 52-week range of $174.85, while individual targets vary widely between $60 and $203. This dispersion reflects a fundamental disagreement over the value of growth in the core identity business and the potential of Okta for AI Agents, particularly because management does not expect a material AI contribution in fiscal year 2027 despite strong bookings. The 52-week range of $62.66 to $174.85 confirms that the rerating depends heavily on continued contract growth and the conversion of the AI pipeline into measurable revenue in fiscal year 2028 and beyond.
Figures in the text are as of 2026-08-28; the live price is shown at the top of the page.
Okta’s revenue reached approximately $805 million, gross profit was $641 million, and net income was $116 million in Q2 of fiscal year 2027. Earnings per share reached $0.65, while the calculated gross profit margin was approximately 79.6% and the net income margin was approximately 14.4%. The company also achieved its highest bookings in any non-Q4 quarter, driven by strong pipeline conversion and contract expansion. Cash and cash equivalents and short-term investments totaled approximately $2.3 billion at the end of the quarter.
Okta for AI Agents had not become a material revenue driver as of Q2 of fiscal year 2027, according to management. The company closed dozens of deals during the quarter, including several deals exceeding $1 million, but this business remains small relative to a revenue base of approximately $3 billion. The product became generally available on April 30, 2026, and Okta added 24 significant enhancements during the first 2 months. Management sees the potential for the contribution to become material in fiscal year 2028 and beyond if pipeline conversion continues.
New products represented approximately 30% of bookings in Q2 of fiscal year 2027, with Okta Identity Governance the largest contributor within this group. Adding any of the new products to a deal increases average annual contract value by approximately 40%. The portfolio also includes Privileged Access, Identity Threat Protection, and Okta for AI Agents, enabling multiple capabilities to be sold within a single platform. This breadth helped increase the number of customers with annual contracts exceeding $1 million by more than 20% to more than 600 customers.
Automated analysis for informational purposes only — not investment advice.
Okta completed the acquisition of Permiso on August 26, 2026, to expand its identity threat detection capabilities across multi-cloud environments. Permiso has approximately 400 native risk-detection mechanisms, compared with approximately 90 mechanisms in Okta’s current protection product. The company plans to integrate the technology with Identity Threat Protection and Identity Security Posture Management within a unified security offering. The integration is intended to improve visibility into the behavior of autonomous agents and add runtime controls for human, non-human, and agentic identities.
Okta expects revenue growth of between 10% and 11% in fiscal year 2027 after raising its outlook on August 26, 2026. The company targets a non-GAAP operating margin of 26% and a free cash flow margin of between 28% and 29%. The revenue outlook includes a negative impact of approximately 1 percentage point from shifting more professional services work to global integration partners. The free cash flow outlook also includes an impact of approximately 1 percentage point from lower interest income following share repurchases and the settlement of convertible notes.
The first risk is that AI products remain financially immaterial in fiscal year 2027, and there is no long track record showing how quickly the pipeline converts into revenue. Okta also faces competition from Microsoft and large platforms such as Salesforce and ServiceNow, alongside numerous startups in agentic identity security. The range of analyst targets between $60 and $203 is also far wider than the average target of $175.37, reflecting substantial disagreement over valuation. Finally, net insider sales reached $21.7 million over the 3 months through July 8, 2026, while recognizing that these sales may have been prearranged.
