How did Okta perform in its first quarter of fiscal 2027?

Revenue reached $765 million, up 11% year-over-year, and GAAP operating income was $56 million compared with $39 million a year earlier. Non-GAAP operating income was $191 million, or 25% of revenue, versus 27% in the prior-year quarter.

Why did the non-GAAP tax rate change?

Effective February 1, 2026, Okta adopted a long-term projected non-GAAP tax rate of 21%, down from 26%, primarily due to the enactment of the One Big Beautiful Bill Act. The change applies prospectively.

What drove the free cash flow outlook and what factors affect it?

Free cash flow guidance reflects an approximately one percentage point impact from lower interest income due to the stock repurchase program and the intent to settle the remainder of the 2026 Notes in cash.

What is Okta's cash position and capital return activity?

Cash, cash equivalents and short-term investments totaled $2.589 billion at April 30, 2026. During the quarter, Okta repurchased $248 million of common stock.

OKTA 8-K: Earnings & Results & Regulation FD

Q: What is Okta's outlook for fiscal 2027?

Okta expects full-year total revenue of $3.185 billion to $3.205 billion (9% to 10% growth), non-GAAP operating income of $806 million to $826 million, non-GAAP diluted EPS of $3.79 to $3.87, and non-GAAP free cash flow of $855 million to $885 million.

01—Abstract

Summary

Summary of the 8-K filed May 28, 2026. Cited figures are marked; the original filing is the authoritative source.

Okta, Inc. (Nasdaq: OKTA) filed an 8-K on May 28, 2026 furnishing its press release announcing first quarter fiscal 2027 results for the quarter ended April 30, 2026.

Total revenue was $765 million^a, up 11% year-over-year, with subscription revenue of $750 million, also up 11%. Remaining performance obligations (RPO) were $4.719 billion, up 16%, and current RPO (cRPO) was $2.499 billion, up 12%. GAAP operating income was $56 million (7% of revenue) versus $39 million a year earlier, and GAAP net income was $74 million, or $0.42 per diluted share.

Non-GAAP operating income was $191 million^b (25% of revenue) and non-GAAP diluted EPS was $0.91, versus $0.86 in the prior-year quarter. Operating cash flow was $277 million and free cash flow was $271 million, or 35% of revenue. Cash, cash equivalents and short-term investments totaled $2.589 billion at April 30, 2026.

For the second quarter of fiscal 2027, Okta guided to total revenue of $790 million to $794 million^c (9% growth), non-GAAP operating income of $204 million to $208 million, and non-GAAP diluted EPS of $0.95 to $0.97. For full fiscal 2027, the company now expects total revenue of $3.185 billion to $3.205 billion (9% to 10% growth), non-GAAP operating income of $806 million to $826 million, non-GAAP diluted EPS of $3.79 to $3.87, and non-GAAP free cash flow of $855 million to $885 million. The revenue outlook reflects an approximately one percentage point headwind from accelerating the shift of professional services to partners, and the free cash flow outlook reflects an approximately one percentage point impact from lower interest income tied to the stock repurchase program and the intent to settle the remaining 2026 Notes in cash.

The company also adopted a long-term non-GAAP tax rate of 21%, down from 26%, effective February 1, 2026, primarily due to the enactment of the One Big Beautiful Bill Act. The 8-K also notes that repurchases of common stock totaled $248 million^d in the quarter, and that the company posted supplemental investor materials on its investor relations website.

02—Key points

Key Highlights

Total revenue of $765 million grew 11% year-over-year; subscription revenue of $750 million also grew 11%.
RPO grew 16% to $4.719 billion, while cRPO grew 12% to $2.499 billion.
GAAP net income rose to $74 million ($0.42 per diluted share) from $62 million; non-GAAP diluted EPS was $0.91 versus $0.86.
Free cash flow was $271 million (35% of revenue) on operating cash flow of $277 million.
Full-year fiscal 2027 revenue guidance is $3.185 billion to $3.205 billion, with non-GAAP diluted EPS of $3.79 to $3.87.
Guidance includes an approximately one percentage point revenue headwind from shifting professional services to partners.
Non-GAAP tax rate lowered to 21% from 26% effective February 1, 2026, reflecting the One Big Beautiful Bill Act.

03—Questions

Frequently Asked Questions

How did Okta perform in its first quarter of fiscal 2027?
Revenue reached $765 million, up 11% year-over-year, and GAAP operating income was $56 million compared with $39 million a year earlier. Non-GAAP operating income was $191 million, or 25% of revenue, versus 27% in the prior-year quarter.
What is Okta's outlook for fiscal 2027?
Okta expects full-year total revenue of $3.185 billion to $3.205 billion (9% to 10% growth), non-GAAP operating income of $806 million to $826 million, non-GAAP diluted EPS of $3.79 to $3.87, and non-GAAP free cash flow of $855 million to $885 million.
Why did the non-GAAP tax rate change?
Effective February 1, 2026, Okta adopted a long-term projected non-GAAP tax rate of 21%, down from 26%, primarily due to the enactment of the One Big Beautiful Bill Act. The change applies prospectively.
What drove the free cash flow outlook and what factors affect it?
Free cash flow guidance reflects an approximately one percentage point impact from lower interest income due to the stock repurchase program and the intent to settle the remainder of the 2026 Notes in cash.
What is Okta's cash position and capital return activity?
Cash, cash equivalents and short-term investments totaled $2.589 billion at April 30, 2026. During the quarter, Okta repurchased $248 million of common stock.

04—Continue

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