What is Okta's outlook for fiscal 2026?

Okta expects full-year fiscal 2026 total revenue of $2.850 billion to $2.860 billion, representing 9% to 10% growth, and non-GAAP operating income of $710 million to $720 million, a 25% non-GAAP operating margin. Non-GAAP diluted EPS is expected to be $3.23 to $3.28, and non-GAAP free cash flow margin approximately 27%.

What do RPO and cRPO indicate about future revenue?

RPO, or subscription backlog, was $4.084 billion, up 21% year-over-year. cRPO, the backlog expected to be recognized over the next 12 months, was $2.227 billion, up 14%. The company guided Q2 cRPO to $2.200 billion to $2.205 billion, representing 10% to 11% growth.

Why did Okta's GAAP results improve so much from the prior year?

GAAP operating income swung to $39 million from a $47 million loss a year earlier. Stock-based compensation fell to $128 million from $151 million, and the filing shows no legal settlement or charitable contribution expenses in the current quarter, compared with $7 million and $3 million in the prior-year quarter.

OKTA 8-K: Earnings & Results & Regulation FD

Q: How did Okta perform in its first quarter of fiscal 2026?

Okta reported total revenue of $688 million, up 12% year-over-year, and GAAP net income of $62 million, or $0.35 per diluted share, compared with a net loss of $40 million a year earlier. Non-GAAP operating income reached $184 million, or 27% of total revenue.

01—Abstract

Summary

Summary of the 8-K filed May 27, 2025. Cited figures are marked; the original filing is the authoritative source.

Okta, Inc. furnished an 8-K on May 27, 2025 reporting results for its first quarter of fiscal 2026, ended April 30, 2025.

Total revenue was $688 million^a, up 12% year-over-year, and subscription revenue was $673 million, also up 12%. Remaining performance obligations (RPO) were $4.084 billion, up 21%, and current RPO (cRPO) was $2.227 billion, up 14%. GAAP operating income was $39 million, or 6% of total revenue, compared with a GAAP operating loss of $47 million in the prior-year quarter.

Non-GAAP operating income was $184 million^b, or 27% of total revenue, versus $133 million a year earlier. GAAP net income was $62 million, or $0.35 per diluted share, compared with a net loss of $40 million in the prior-year quarter. Cash flow was strong, with operating cash flow of $241 million and free cash flow of $238 million, or 35% of total revenue.

Cash, cash equivalents and short-term investments totaled $2.725 billion^c at April 30, 2025. Non-GAAP diluted net income per share was $0.86, compared with $0.65 a year earlier. For fiscal 2026, Okta guided to total revenue of $2.850 billion to $2.860 billion, representing 9% to 10% growth, non-GAAP operating income of $710 million to $720 million, and non-GAAP diluted EPS of $3.23 to $3.28.

For the second quarter, it guided to revenue of $710 million to $712 million^d, representing 10% growth. The company said the outlook reflects its go-to-market specialization rolled out in Q1 of FY26 and potential risks from the uncertain economic environment.

02—Key points

Key Highlights

Total revenue of $688 million, up 12% year-over-year; subscription revenue of $673 million, also up 12%.
RPO of $4.084 billion, up 21% year-over-year; cRPO of $2.227 billion, up 14%.
GAAP operating income of $39 million (6% of revenue) versus a GAAP operating loss of $47 million a year earlier.
Non-GAAP operating income of $184 million (27% of revenue), up from $133 million in the prior-year quarter.
Operating cash flow of $241 million and free cash flow of $238 million, or 35% of total revenue.
FY26 guidance: total revenue of $2.850 billion to $2.860 billion (9% to 10% growth) and non-GAAP diluted EPS of $3.23 to $3.28.
Q2 FY26 guidance: total revenue of $710 million to $712 million (10% growth) and non-GAAP diluted EPS of $0.83 to $0.84.

03—Questions

Frequently Asked Questions

How did Okta perform in its first quarter of fiscal 2026?
Okta reported total revenue of $688 million, up 12% year-over-year, and GAAP net income of $62 million, or $0.35 per diluted share, compared with a net loss of $40 million a year earlier. Non-GAAP operating income reached $184 million, or 27% of total revenue.
What is Okta's outlook for fiscal 2026?
Okta expects full-year fiscal 2026 total revenue of $2.850 billion to $2.860 billion, representing 9% to 10% growth, and non-GAAP operating income of $710 million to $720 million, a 25% non-GAAP operating margin. Non-GAAP diluted EPS is expected to be $3.23 to $3.28, and non-GAAP free cash flow margin approximately 27%.
How strong is Okta's cash generation and balance sheet liquidity?
Operating cash flow was $241 million and free cash flow was $238 million, or 35% of total revenue. Cash, cash equivalents and short-term investments totaled $2.725 billion at April 30, 2025.
What do RPO and cRPO indicate about future revenue?
RPO, or subscription backlog, was $4.084 billion, up 21% year-over-year. cRPO, the backlog expected to be recognized over the next 12 months, was $2.227 billion, up 14%. The company guided Q2 cRPO to $2.200 billion to $2.205 billion, representing 10% to 11% growth.
Why did Okta's GAAP results improve so much from the prior year?
GAAP operating income swung to $39 million from a $47 million loss a year earlier. Stock-based compensation fell to $128 million from $151 million, and the filing shows no legal settlement or charitable contribution expenses in the current quarter, compared with $7 million and $3 million in the prior-year quarter.

04—Continue

← View all 8-K filings