Okta Inc: Clean Execution, but Growth Still Lacks Catalyst

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Okta Inc: Clean Execution, but Growth Still Lacks Catalyst

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Okta Inc

Clean Execution, but Growth Still Lacks

Catalyst

Reiterate Rating: UNDERPERFORM | PO: 75.00 USD | Price: 94.72 USD

Solid Print, Muted Outlook 29 May 2026

Okta delivered a clean 1Q27 with 11% revenue growth, 12% current remaining performance Equity

obligations (cRPO) growth, and 25% operating margins, alongside strong 35% FCF margins.

Performance was driven by continued strength in large enterprises, improved sales Tal Liani

execution, and momentum in newer products, which now represent 25% of bookings. Research Analyst

BofAS

Despite the solid quarter, guidance remains conservative with 2Q revenue expected at 9% +1 646 855 5107

growth and FY27 at 9.5%, implying limited change to the overall growth trajectory. tal.liani@bofa.com

Trevor Dodds

Research AnalystBacklog Strength and Platform Momentum BofAS

The most constructive takeaway is the durability in forward indicators. Remaining trevor.dodds@bofa.com

performance obligations (RPO) grew 16% and cRPO grew 12%, which both continue to

outpace revenue, while NRR improved to 107% vs 106% in 4Q. Enterprise traction

remains a key driver, with large customers now representing 85% of average contract Stock Data

value (ACV). Newer products, particularly Identity Governance, continue to scale, driving

larger deal sizes and deeper platform adoption. AI is also contributing indirectly, with Price 94.72 USD

record pipeline levels and early deals coming in above average size. Price Objective 75.00 USD

AI Still Early, Growth Still 10% DateInvestmentEstablishedOpinion 29-Aug-2024C-3-9

However, the underlying issue remains unchanged, growth is still range bound in the 52-Week Range 62.66 USD - 112.08 USD

HSD range.