Okta Shares Fall As Company Declines To Provide Guidance For Next Fiscal Year

Okta exceeded Wall Street expectations for the third quarter and issued a positive outlook, yet its shares declined after the company opted not to provide guidance for fiscal 2027.

The identity‑management firm’s stock fell more than 3% in after‑hours trading on Tuesday.

Quarterly results versus LSEG estimates

Adjusted earnings per share: $0.82 (expected $0.76).

Revenue: $742 million (expected $730 million).

Unlike prior third‑quarter reports, Okta did not offer preliminary guidance for the coming fiscal year; CFO Brett Tighe attributed the decision to fourth‑quarter seasonality and said issuing guidance would require “some conservatism.”

During the quarter, Okta launched a capability enabling customers to build AI agents and automate workflows. CEO Todd McKinnon told CNBC that revenue upside from these AI agents is not yet reflected in results and could expand beyond Okta’s core total addressable market over the next five years. “It’s not in the results yet, but we’re investing, and we’re capitalizing on the opportunity like it will be a big part of the future,” he said.

Revenue rose nearly 12% from $665 million a year earlier. Net income increased 169% to $43 million, or $0.24 per share, compared with $16 million, or breakeven, in the prior‑year period. Subscription revenue grew 11% to $724 million, ahead of the $715 million consensus.

For the current quarter, Okta expects revenue of $748 million to $750 million and adjusted EPS of $0.84 to $0.85. Analysts had forecast $738 million in revenue and $0.84 in EPS for the fourth quarter.

Remaining performance obligations, representing the company’s subscription backlog, rose 17% year over year to $4.29 billion, surpassing the StreetAccount estimate of $4.17 billion.

The cybersecurity sector has seen notable activity this year, including major acquisitions by firms such as Palo Alto Networks and Google and a wave of new IPOs. Okta’s shares are up roughly 4% year to date.