Okta (OKTA) prepares to release second-quarter fiscal year 2026 results on August 26, with market sentiment balancing near-term outlooks and long-term growth potential. The company, headquartered in San Francisco, operates as an independent identity management service, offering cloud-based solutions with a market cap of $15.6 billion.

In the first quarter of fiscal 2026, Okta surpassed revenue expectations, with a 11.5% YoY increase to $688 million. Net income reached $62 million, a significant improvement from the prior year, and adjusted EPS grew 32.3% to $0.86. Despite these positive results, guidance remains cautious amidst economic uncertainties.

For the second quarter, Okta projects revenue growth to $710-712 million, a 10% YoY increase, and non-GAAP diluted net income per share to be in the range of $0.83 to $0.84. Full-year revenue expectations stand at $2.85-$2.86 billion, with non-GAAP diluted EPS projected between $3.23 and $3.28. Analysts anticipate significant EPS growth for fiscal 2026 and 2027.

Analyst sentiment towards OKTA is mostly positive, with a majority rating it as a “Strong Buy.” The average price target of $122.63 implies a potential upside of 37.3%, while the highest target of $148 suggests a 65.7% climb from current levels.

Read more at Yahoo Finance: Dear Okta Stock Fans, Mark Your Calendars for August 26