Okta Inc (NASDAQ:OKTA) shares moved higher in U.S. premarket trading on Thursday after the company reported fourth-quarter results that came in above market expectations.
The stock gained about 2.4% ahead of the opening bell on Wall Street, reversing earlier declines.
The identity management specialist reported adjusted earnings per share of $0.90, exceeding the analyst consensus of $0.85 by $0.05. Revenue totaled $761 million, beating estimates of $749.53 million and marking an 11% increase from a year earlier. Subscription revenue, which represents the majority of the company’s sales, also rose 11% to $747 million.
“Our strong performance this fiscal year was fueled by the continued trust of the world’s largest organizations and the accelerating adoption of our new products, reinforcing the value of our unified identity platform,” said Todd McKinnon, Chief Executive Officer and co-founder of Okta.
Looking ahead to fiscal 2027, Okta projected full-year adjusted EPS in a range of $3.74 to $3.82, with a midpoint of $3.78 that sits above the analyst consensus of $3.67. The company also forecast revenue between $3.17 billion and $3.19 billion, compared with consensus expectations of $3.17 billion. Okta added that its plan to transition its professional services operations to partners will create a roughly one-percentage-point drag on revenue growth.
“Fiscal 2027 guidance was mixed across the top and bottom line given moving pieces, but was still generally solid,” analysts at RBC Capital Markets said in a note.
For the current quarter, Okta expects revenue of $749 million to $753 million and adjusted EPS of $0.84 to $0.86.
During the fourth quarter, the company generated operating cash flow of $258 million and free cash flow of $252 million. Remaining performance obligations increased 15% to $4.827 billion, while current remaining performance obligations rose 12% to $2.513 billion. Okta finished the quarter with $2.553 billion in cash, cash equivalents and short-term investments.