Okta Stock Beats Quarterly Estimates but Issues Weak Guidance

Rowan Ashford

Published: March 4, 2026 4:46 PM ET

Okta Stock Beats Quarterly Estimates but Issues Weak Guidance

Okta stock dipped into a more cautious outlook on March 4 after the company forecast first-quarter revenue below analysts' expectations, projecting single-digit growth for the first time since its 2017 IPO. The guidance set a clear new benchmark for the identity-security vendor at a moment when enterprise spending is under scrutiny.

Okta Stock guidance misses analysts' averages

it expects first-quarter revenue between $749 million and $753 million, a 9% increase that sits below analysts' average estimate of $754. 61 million and shy of the 9. 7% growth analysts had expected. Okta also projected adjusted profit of $0. 84 to $0. 86 per share for the fiscal quarter, under the $0. 87 estimate analysts were using.

Fourth-quarter results beat but highlighted the contrast

For the fourth quarter ended January 31, Okta's revenue rose more than 11% to $761 million, topping the $748. 8 million estimate. Adjusted profit for the quarter came in at $0. 90 per share, ahead of the $0. 85 analysts had expected. Those beats in the quarter stand in contrast to the softer outlook for the upcoming fiscal period.

Executives point to cautious customers and hiring trends

Okta said enterprise customers are delaying projects and scrutinizing costs, a dynamic that can push renewals later or scale back deployments when software is priced per employee and hiring trends remain muted. Chief Operating Officer Eric Kelleher said the company has not yet seen any meaningful impact from seat reductions showing up in its results. The company competes with other identity and access management providers such as Ping Identity and SailPoint.

The guidance — revenue of $749 million to $753 million and adjusted profit of $0. 84 to $0. 86 per share for the fiscal quarter — marks the firm's forecast for the next reporting period and the slowest single-digit growth rate since the 2017 IPO. Investors and customers will watch whether future quarters reflect the same caution in enterprise technology budgets.