Okta is scheduled to report second-quarter fiscal 2026 results on Aug. 26, with expected non-GAAP earnings of 83-84 cents per share and revenues in the range of $710-$712 million, showing a 10% year-over-year growth. The Zacks Consensus Estimate for earnings is at 84 cents per share and revenues at $711 million.

Factors such as an expanding product portfolio, strong customer growth, and new product offerings like Identity Governance and Okta AI are expected to drive Okta’s growth. However, the company faces competition in the identity and access management space from Microsoft, SentinelOne, and Cisco Systems.

Okta’s stock has outperformed the Computer & Technology sector and Security industry year-to-date but is currently overvalued with a Value Score of D. It is trading at a higher Price/Sales ratio compared to SentinelOne and Cisco. The company’s revenue guidance for fiscal 2026 shows potential growth, but macroeconomic challenges and valuation concerns make it a risky bet.

Despite the risks, Okta’s strong partner base, innovative offerings, and robust liquidity position make it a hold for now. The company’s collaboration with Palo Alto Networks and strong financial performance indicate growth potential. With a Zacks Rank #3 (Hold), investors are advised to wait for a favorable entry point before accumulating Okta’s stock.

Read more at Nasdaq: Buy, Sell or Hold OKTA Stock? Key Tips Ahead of Q2 Earnings