Okta

OKTA

Market cap $15.7B

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Okta (OKTA) closed the most recent trading day at $89.08, moving 1.18% from the previous trading session.

Stocks like Adobe and Okta have room to climb if their earnings beat expectations.

Zacks.com users have recently been watching Okta (OKTA) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.

In the most recent trading session, Okta (OKTA) closed at $92.63, indicating a +1.91% shift from the previous trading day.

CRWD's faster growth, AI-driven edge, and expanding Falcon platform make it a stronger pick over OKTA.

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?

Okta (OKTA) has staged a strong turnaround, showing robust revenue growth, positive operating income, and industry-leading free cash flow margins. Its operational leverage is evident as it converts revenue into substantial cash, with a net cash position and reasonable valuation multiples versus peers. Profitability is improving but still lags sector leaders; high gross margins and cost discipline could drive further bottom-line surprises.

I am reiterating my “buy” rating on Okta with an updated price target of $115 per share, representing an upside of 26% from current levels as investor sentiment remains dampened. Okta outperformed against all metrics in Q2 FY26, with revenue, cRPO, and operating margin exceeding management targets, driven by strong enterprise customer growth and operating efficiency. Plus, the pending Axiom Security acquisition strengthens Okta's Privileged Access offering amid industry consolidation, positioning it well against competitors like CyberArk.

Okta offers compelling growth at a reasonable price, trading well below recent highs, despite strong fundamentals and a large addressable market. OKTA boasts high-margin, recurring subscription revenue and a clean balance sheet with $2 billion in net cash, supporting future growth initiatives. The company demonstrates a strong "Rule of 40" profile, balancing double-digit revenue growth with high operating margins, yet trades at modest valuation multiples.