Is OKTA Stock (OKTA) a Buy Ahead of Q2 Earnings? Here’s What You Need to Know

OKTA bulls are loading up ahead of earnings—but is this identity play worth the gamble?

The Setup

Wall Street's buzzing as OKTA preps to drop Q2 numbers. The stock's been volatile—classic tech rollercoaster action—and everyone's trying to sniff out whether this one's a breakout or breakdown candidate.

Identity Crisis or Opportunity?

Zero-trust architecture remains hot, but competition's fierce. Microsoft, CrowdStrike—everyone wants a piece of the identity pie. OKTA’s got its niche, but sustaining growth ain’t a given.

The Earnings Playbook

Guidance matters more than past performance. Subscriber growth, retention rates, and that all-important revenue projection—watch for surprises. One miss and the algos will shred this thing faster than a trader blaming the Fed.

Bottom Line

High risk, high reward. If you believe in the long-term identity shift—maybe it’s a buy. If not? Well, there’s always another stock to chase. Typical finance—place your bets and pray the hedge funds don’t flip the table.

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What Wall Street Expects

Wall Street is expecting Okta to report earnings per share for the period of $0.84, which WOULD mark a year-over-year growth of 16.7%. The consensus mark for revenues is pegged at $711 million, indicating an increase of 10.1%.

Will OKTA be able to beat these estimates? As can be seen below, it has a strong track record in doing just that.

Key Issues Ahead of Earnings

Let’s take a look at what analysts are saying about Okta ahead of Q2 earnings. In its Q1 earnings the company reported reported robust cash flow, record non-GAAP operating profitability, and a profit margin, with a notable focus on large customers and new product contributions. Workflow executions remarkably increased by nearly 400% over the past three years, reaching approximately $40 billion in March.

However, it also highlighted economic uncertainty and a decline in net revenue retention rate.

Junaid Siddiqui of Truist remains optimistic recently upgrading Okta to Buy from Hold with a price target of $125, up from $100. The firm believes Okta is approaching an inflection point as headwinds from seat count pressure and go-to-market changes are seen abating in the second half of FY26 while the company’s all-in-one identity platform is resonating with customers.

But, Joseph Gallo of Jefferies lowered the firm’s price target on Okta to $100 from $105 and kept a Hold rating on the shares. The firm expects fiscal Q2 Remaining Performance Obligations (RPO) to beat guidance of $2.203 billion, but thinks Okta will likely guide Q3 RPO growth below the consensus view of 9.4%. That he said may raise questions on the FY27 revenue growth trajectory.

Is OKTA a Good Stock to Buy Now?

On TipRanks, OKTA has a Moderate Buy consensus based on 22 Buy, 10 Hold and 1 Sell ratings. Its highest price target is $148. Okta stock’s consensus price target is $122.25, implying a 31.92% upside.