Okta’s subscription business is thriving, with subscription revenues growing 12% year over year to $673 million in the first quarter of fiscal 2026. Strategic moves like expanding its identity platform and restructuring sales teams have contributed to the company’s success, with a 27% non-GAAP operating margin and 35% free cash flow supporting continued growth.

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Okta’s stock has appreciated 16.2% year to date, trading at a premium with a forward Price/Cash Flow ratio of 21.56. Analysts project a 16.67% year-over-year growth in second-quarter earnings and a 16.73% growth in fiscal 2026 earnings. Okta currently carries a Zacks Rank #2 (Buy), indicating strong potential for investors.

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Read more at Nasdaq: Okta’s Subscription Revenues Accelerate: Which Factors Are Driving it?