Okta Inc (NASDAQ:OKTA) shares are jumping on Friday after delivering a first‑quarter report that cleared expectations on both revenue and earnings, followed by a guidance raise that gave the market even more to work with. The strong print was quickly met with higher price targets from BTIG and Needham, adding fuel to the move.
- Okta stock is at critical resistance. Why is OKTA stock breaking out?
Q1 Results Land Well Ahead Of Expectations
Okta's latest quarter came in stronger than Wall Street anticipated. The company posted earnings of 91 cents per share, comfortably above the consensus estimate of 85 cents. Revenue reached $765 million, topping the Street's $751.88 million forecast.
The subscription backlog, or RPO, climbed to $4.72 billion, a 16% increase from last year. The near‑term portion of that backlog, known as cRPO, rose 12% to nearly $2.50 billion. Non‑GAAP operating income came in at $191 million, representing 25% of total revenue, showing meaningful operating leverage.
Guidance Moves Higher And Analysts Respond
The company also raised its full‑year outlook, lifting its fiscal 2027 adjusted EPS forecast to a range of $3.79 to $3.87. Revenue expectations were increased as well, now roughly projected between $3.19 billion and $3.21 billion.
Analysts responded quickly. BTIG's Gray Powell bumped his price target from $105 to $119, while Needham's Mike Cikos raised his from $90 to $120. Both firms reiterated Buy ratings, signaling confidence that Okta's execution and updated guidance justify a higher valuation.
The Technical Picture
From a trend perspective, Okta is extended above its major moving averages. It’s trading 40.3% above the 20-day SMA, 49.1% above the 50-day SMA and 38% above the 200-day SMA, which is classic "price discovery" behavior after a breakout. The 20-day SMA is above the bullish 50-day SMA, but the longer-term backdrop still carries the overhang of the death cross from August 2025, so longer-term trend followers will want to see the 200-day start curling higher to confirm a more durable regime shift.
For momentum, MACD is the cleaner read right now: it's above its signal line and the histogram is positive, which points to improving upside pressure versus the prior downswing. In plain terms, when MACD is above its signal line, it suggests buyers are gaining control and pullbacks may be getting bought faster than they were before.
- Key Support: $95.50 — a nearby level where buyers previously stepped in, and a reasonable "line in the sand" if the breakout starts to fade.
OKTA Shares Are Soaring
OKTA Price Action: Okta shares were up 25.88% at $119.23 at the time of publication on Friday. The stock is trading at a new 52-week high, according to Benzinga Pro.
Image: IgorGolovniov/Shutterstock
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