Okta Shares Slide Despite Earnings Beat as Long-Term Guidance Goes Missing
Okta delivered a strong Q3 performance with earnings of 82 cents per share (vs. 76 cent estimate) and $742 million revenue (vs. $730 million expected). Yet shares fell 3% after hours as the identity management firm broke from its practice of providing fiscal 2027 guidance.
CFO BRETT Tighe cited seasonality and 'conservatism' for withholding projections, unsettling investors accustomed to long-term visibility. The company's Q4 outlook remains robust—$748-$750 million revenue and 84-85 cent EPS—exceeding analyst expectations.
BMO Capital trimmed its price target from $112 to $90, citing sector-wide multiple compression while maintaining a Market Perform rating. CEO Todd McKinnon hinted at untapped AI agent opportunities that could 'exceed Core market growth' within five years.
