An Overview of Okta's Earnings

Okta (NASDAQ:OKTA) is gearing up to announce its quarterly earnings on Tuesday, 2025-12-02. Here's a quick overview of what investors should know before the release.

Analysts are estimating that Okta will report an earnings per share (EPS) of $0.53.

Anticipation surrounds Okta's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Past Earnings Performance

The company's EPS beat by $0.27 in the last quarter, leading to a 1.61% increase in the share price on the following day.

Here's a look at Okta's past performance and the resulting price change:

Market Performance of Okta's Stock

Shares of Okta were trading at $80.33 as of November 28. Over the last 52-week period, shares are down 1.69%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.

Analyst Views on Okta

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Okta.

A total of 8 analyst ratings have been received for Okta, with the consensus rating being Outperform. The average one-year price target stands at $117.75, suggesting a potential 46.58% upside.

Comparing Ratings Among Industry Peers

In this comparison, we explore the analyst ratings and average 1-year price targets of Akamai Technologies, GoDaddy and Twilio, three prominent industry players, offering insights into their relative performance expectations and market positioning.

• Analysts currently favor an Neutral trajectory for Akamai Technologies, with an average 1-year price target of $97.83, suggesting a potential 21.79% upside.
• Analysts currently favor an Neutral trajectory for GoDaddy, with an average 1-year price target of $180.62, suggesting a potential 124.85% upside.
• Analysts currently favor an Outperform trajectory for Twilio, with an average 1-year price target of $135.21, suggesting a potential 68.32% upside.

Comprehensive Peer Analysis Summary

The peer analysis summary outlines pivotal metrics for Akamai Technologies, GoDaddy and Twilio, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Okta ranks highest in Revenue Growth among its peers. It has the lowest Gross Profit margin. Okta has the lowest Return on Equity.

Discovering Okta: A Closer Look

Okta is a cloud-native security company that focuses on identity and access management. The San Francisco-based firm went public in 2017 and focuses on two key client stakeholder groups: workforces and customers. Okta's workforce offerings enable a company's employees to securely access its cloud-based and on-premises resources. The firm's customer offerings allow its clients' customers to securely access the client's applications.

Unraveling the Financial Story of Okta

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Okta's revenue growth over a period of 3 months has been noteworthy. As of 31 July, 2025, the company achieved a revenue growth rate of approximately 12.69%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.

Net Margin: Okta's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 9.2%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Okta's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 1.01%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Okta's ROA stands out, surpassing industry averages. With an impressive ROA of 0.71%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: With a below-average debt-to-equity ratio of 0.14, Okta adopts a prudent financial strategy, indicating a balanced approach to debt management.

To track all earnings releases for Okta visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.