🛡️ Okta delivered quality results, but the outlook was disappointing!
Okta $OKTA, a digital identity and access rights management company, has posted solid results for the first fiscal quarter of 2026. It beat market expectations on both revenue and profit. However, the company did not change its outlook, despite the excellent numbers, citing ongoing macroeconomic uncertainty. Thus, the weaker outlook today sends the stock down by 14 % lower!

📊 Key Q1 FY26 numbers:
Earnings per share (non-GAAP): $0.86 ($0.77 expected)

Revenue. USD 688 million (USD 680 million expected)

Year-over-year revenue growth: +12%

Net income (GAAP): $62 million. USD 62 million (USD 40 million loss last year)

Subscription revenue: $673m. USD

🧭 Outlook remains almost unchanged:
FY26 revenue: USD 2.85-2.86 billion (unchanged)

Operating profit (non-GAAP): increased to USD 710-720mn. USD 705-715m (vs. previous USD 705-715m).

CEO Todd McKinnon admitted that the company's approach to outlook "conservative" and customers are being more cautious, especially due to geopolitical turmoil and fluctuations in US trade policy . But he also added that this had not yet reflected negatively in the first quarter numbers.

🌐 Identity security as a key area
Okta is capitalizing on the growing corporate need for secure access control - Zero Trust, SSO, MFA and IAM systems are now an essential part of any major infrastructure. The company has a sound and quality business model built on subscriptions.

However, the market was expecting the company to add to its optimism, especially after a series of positive surprises. Maintaining the outlook in a turbulent environment is logical from management's perspective, but more of a signal of uncertainty from the market's perspective.

Okta is delivering consistent performance and improving profitability.

However, the market was expecting more confidence and it has not come yet.

What is your view on this company? Does anyone have shares of this company in their portfolio?