From Nasdaq: 2025-04-25 13:59:00

Okta (OKTA) shares have dropped 11% in a month due to the challenging macroeconomic environment caused by higher tariffs. Despite this, the company’s innovative portfolio, including Okta Identity Governance and other solutions, is expected to drive a surge in OKTA shares by 2025. Year to date, OKTA shares have outperformed competitors like Microsoft (MSFT) and CyberArk (CYBR).

Okta’s strong demand for new products has led to more than 20% of fourth-quarter fiscal 2025 bookings coming from new products. The company’s innovative portfolio is attracting clients and driving top-line growth, with over 19,650 customers and $4.215 billion in remaining performance obligations. Okta expects strong growth prospects for subscription revenues and customer base expansion.

Okta’s offerings include AI-powered capabilities like Okta AI, which enhances user experiences and protects against cyberattacks. The company’s platforms are compatible with various cloud environments and offer solutions for managing and securing employee, contractor, and customer identities. Okta’s strong portfolio is helping it gain market share in the cybersecurity domain and earn accolades from organizations like Gartner.

For the first quarter of fiscal 2026, Okta expects revenues between $678 million and $680 million, with non-GAAP earnings projected to be between 76 cents and 77 cents per share. The Zacks Consensus Estimate for OKTA’s earnings has increased by 11.6% to 77 cents per share, suggesting 18.46% year-over-year growth. For fiscal 2026, Okta expects revenues between $2.85 billion and $2.86 billion, with non-GAAP earnings projected to be between $3.15 and $3.20 per share.

Okta is an attractive investment opportunity with a Zacks Rank #2 (Buy) and a Growth Score of A. The company’s strong growth prospects and large addressable market justify its premium valuation. Okta is currently trading above the 200-day moving average, indicating a bullish trend. The stock is trading at a forward Price/Sales ratio of 6.05X, compared to the broader sector’s 5.56X, suggesting a premium valuation.

Okta recently announced the availability of new features like Auth for GenAI in Developer Preview, further enhancing its platform’s capabilities. The company’s partnership with major players like Amazon Web Services, Microsoft, and Salesforce, along with its broad integrations with various applications and infrastructure providers, position it for continued growth in the cybersecurity market.



Read more at Nasdaq: Okta Declines 11% in a Month: Should You Buy the Stock on the Dip?