Okta Posts Profit Amid Analyst Caution on Growth

Okta, Inc. reported a fiscal Q1 profit of $62 million, reversing a $40 million loss from the prior year, with revenue rising 12% year-over-year to $688 million and beating analyst expectations. Gross profit margin exceeded 76%, and non-GAAP operating margin reached 26.7%, reflecting improved operational efficiency. Despite strong results, several analysts, including Scotiabank, Canaccord Genuity, and Wolfe Research, expressed caution due to a slowdown in current remaining performance obligations (cRPO) growth, issuing price targets of $115 to $130. Okta's stock has surged over 57% year-to-date, outperforming broader indices, but analysts remain neutral or cautious, citing the need for sustained top-line growth and ongoing macroeconomic uncertainties. Management maintained annual revenue guidance and took a prudent outlook reflecting potential economic risks. The company continues to expand its customer base and product offerings as it strengthens its position in the $80 billion Zero Trust market.