Top Wall Street Forecasters Revamp Okta Expectations Ahead Of Q1 Earnings

Okta, Inc. is expected to release Q1 earnings, with analysts anticipating EPS of $0.77, up from $0.65 year-over-year, and revenue of $680.08 million, compared to $617 million the prior year. Several analysts recently updated their ratings on Okta, with JP Morgan, UBS, and Mizuho maintaining positive ratings and increasing price targets, while Jefferies and BMO Capital have hold/market perform ratings with price target increases; Okta was also recently added to the S&P MidCap 400.

Analysis

Okta, Inc. is scheduled to release its first-quarter earnings results on Tuesday, May 27, with analysts anticipating a year-over-year increase in quarterly earnings per share (EPS) from $0.65 to $0.77. Projected quarterly revenue stands at $680.08 million, a notable rise from $617 million reported in the prior year, indicating expectations of continued growth. A significant recent development for Okta is its inclusion in the S&P MidCap 400, announced by S&P Dow Jones Indices on April 28, replacing Berry Global Group Inc., which could enhance stock visibility and attract index fund investments. Despite a generally optimistic outlook reflected in a "strongly positive" sentiment score of 0.75, Okta shares saw a minor decline of 0.2% to close at $123.72 on the preceding Friday. Analyst sentiment has been largely favorable; JP Morgan analyst Brian Essex maintained an Overweight rating and raised the price target from $120 to $140. UBS analyst Roger Boyd also reiterated a Buy rating, increasing the price target from $120 to $150. Mizuho's Gregg Moskowitz maintained an Outperform rating with a price target increase from $127 to $135. While Jefferies analyst Joseph Gallo maintained a Hold rating and BMO Capital's Keith Bachman kept a Market Perform rating, both also increased their price targets to $135, suggesting a consensus on upward valuation adjustments even among more cautious analysts. These price target updates occurred between May 14 and May 23, 2025, according to the article.

Key Decisions for Investors

• Investors should closely monitor Okta's Q1 earnings release on May 27, as performance against the expected $0.77 EPS and $680.08 million revenue will be a key catalyst for the stock.
• The recent inclusion in the S&P MidCap 400 and multiple analyst price target upgrades, with some targets reaching as high as $150 (UBS), present positive factors, although the slight dip in share price to $123.72 suggests the market awaits earnings confirmation.
• Consider the largely positive analyst sentiment and upward price target revisions from firms like JP Morgan, UBS, and Mizuho, while also noting the 'Hold' or 'Market Perform' ratings from Jefferies and BMO Capital, which suggest a balanced view on valuation despite increased targets, before making investment decisions.