Okta (NASDAQ: OKTA), a leading provider of cloud-based identity and access management solutions, saw its stock drop by 13% in after-hours trading on Tuesday, May 27, following the release of its fiscal Q1 2026 earnings results. While the company surpassed Wall Street expectations in both earnings and revenue, the weak forward guidance led to a negative market reaction.
For the quarter, Okta reported earnings of $0.86 per share on revenue of $688 million, beating analyst estimates of $0.77 EPS and $680 million in revenue. As of May 27, the stock was up nearly 60% year-to-date, significantly outperforming the broader NASDAQ index, which is down 0.4%. Continued growth in subscription services has contributed to this strong performance.
The quarter's results were driven by solid revenue growth and margin expansion. Revenue rose 12% year-over-year, primarily supported by the strength in subscription services. Okta’s Remaining Performance Obligations (RPO), a key forward-looking metric, grew 21% year-over-year to $4.1 billion, reflecting healthy future demand.
Despite the positive results, investor concerns about Okta’s future outlook weighed heavily on the stock.
For the quarter, Okta reported earnings of $0.86 per share on revenue of $688 million, beating analyst estimates of $0.77 EPS and $680 million in revenue. As of May 27, the stock was up nearly 60% year-to-date, significantly outperforming the broader NASDAQ index, which is down 0.4%. Continued growth in subscription services has contributed to this strong performance.
The quarter's results were driven by solid revenue growth and margin expansion. Revenue rose 12% year-over-year, primarily supported by the strength in subscription services. Okta’s Remaining Performance Obligations (RPO), a key forward-looking metric, grew 21% year-over-year to $4.1 billion, reflecting healthy future demand.
Despite the positive results, investor concerns about Okta’s future outlook weighed heavily on the stock.