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Jan 31
Okta Q4 2026 Earnings Report
Okta reported Q4 FY2026 results with double-digit revenue growth and significantly improved profitability.
Key Takeaways
Okta delivered solid Q4 FY2026 results with revenue growing 11% year-over-year to $761 million while profitability improved materially, with GAAP operating income rising to $46 million and net income reaching $63 million. The company also generated strong operating cash flow and free cash flow during the quarter.
Revenue grew 11% year-over-year to $761 million driven primarily by subscription revenue.
GAAP operating income expanded to $46 million compared with $8 million in the prior year quarter.
Net income increased to $63 million with diluted EPS of $0.35.
Free cash flow remained strong at $252 million during the quarter.
Revenue by Segment
Forward Guidance
Okta guided to continued revenue growth and strong profitability in FY2027, though management maintained a prudent outlook reflecting current market conditions and changes to its services delivery model.
Positive Outlook
- Expected Q1 FY2027 revenue between $749 million and $753 million.
- FY2027 revenue guidance of $3.17 billion to $3.19 billion.
- Projected non-GAAP operating margin of 23%–24% in Q1 FY2027.
- FY2027 non-GAAP operating income expected between $795 million and $815 million.
- Strong expected free cash flow of $850 million to $880 million for FY2027.
Challenges Ahead
- Revenue growth expected to slow to roughly 9% year-over-year.
- Shift of professional services work to partners creates revenue headwind.
- Approximately one percentage point negative impact to revenue growth from services transition.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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