"Okta ( NASDAQ: OKTA) reports after the close. The setup hinges on two threads: (1) whether sales specialization keeps pipeline building without dinging cRPO and (2) how new products-Identity Security Posture Management, Privileged Access, and Auth for GenAI-translate into upsell/new logo momentum while margins stay tight. Management reiterated prudence on macro/federal while keeping investment levels intact. Q2 EPS: $0.85 Q2 Revenue: $711.9M FY2026 EPS: $3.29 | FY2026 Revenue: $2.86B FY2027 EPS: $3.58 | FY2027 Revenue: $3.14B"
"Go-to-market specialization results - Early signs are positive; management says Q1 metrics tracked well despite field changes. Watch NRR "channel" and new-business mix. AI/Agentic push (Auth0 + Okta platform) - "Auth for GenAI" usage-based pricing; growing focus on securing agent workflows via OAuth/MCP. Look for GA timing and deal anecdotes. Securing non-human identities (NHIs) - ISPM + Privileged Access positioned as end-to-end fabric; investors want proof points and monetization."
Management flagged Q2 revenue growth around 10% and guided for approximately 26% non-GAAP operating margin, with FY margin near 25%. Product catalysts include securing non-human identities and moving Auth0's Auth for GenAI from preview to general availability. Public-sector wins were strong, but the outlook incorporates near-term federal uncertainty. Estimated Q2 EPS is $0.85 and Q2 revenue is $711.9M, with FY2026 revenue at $2.86B and FY2027 revenue at $3.14B. Early go-to-market specialization signs are positive, and investors will watch NRR, channel mix, GA timing, product monetization, and margin guardrails.
#okta #auth-for-genai #non-human-identities-nhi #operating-margin-guidance #public-sectorfederal-deals
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