Okta (OKTA, $133.17) beats Q2 earnings & sales estimates; but issues lower-than-expected guidance
Okta beat analysts’ expectations on earnings and revenue for the second quarter. However, the company’s guidance for the October quarter fell behind the Street’s estimates.
The cloud-based identity and access management company reported a quarterly loss of -5 cents per share, faring better than analysts’ estimate of a loss of -11 cents a share. The losses were also narrower from the year-ago period’s -15 cents loss.
Revenue for the quarter surged +49% year-over-year to $140.5 million, topping the $131.2 million expected by analysts.
Looking ahead, Okta projected a loss of -12 cents to -13 cents a share for the quarter ending October, compared to analysts' estimate of -9 cents loss per share.
The company’s revenue forecast of $143.5 million for the third quarter is below the $140.5 million that the Street had predicted.
In recent times, Okta has been apparently focused on adding very large enterprise customers. According to the company, it had a total of 1,222 customers with annual contract value above $100,000 as of last quarter.
OKTA sees its Stochastic Oscillator recovers from oversold territory
On September 09, 2025, the Stochastic Oscillator for OKTA moved out of oversold territory and this could be a bullish sign for the stock. Traders may want to buy the stock or buy call options. Tickeron's A.I.dvisor looked at 60 instances where the indicator left the oversold zone. In of the 60 cases the stock moved higher in the following days. This puts the odds of a move higher at over .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on September 16, 2025. You may want to consider a long position or call options on OKTA as a result. In of 93 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for OKTA just turned positive on August 22, 2025. Looking at past instances where OKTA's MACD turned positive, the stock continued to rise in of 47 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where OKTA advanced for three days, in of 326 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The 50-day moving average for OKTA moved below the 200-day moving average on August 20, 2025. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where OKTA declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. OKTA’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.373) is normal, around the industry mean (16.894). P/E Ratio (108.226) is within average values for comparable stocks, (154.978). Projected Growth (PEG Ratio) (0.508) is also within normal values, averaging (2.763). OKTA has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.025). P/S Ratio (5.981) is also within normal values, averaging (130.037).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. OKTA’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 91, placing this stock worse than average.
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General Information
a provider of an enterprise-grade identity management services
Industry ComputerCommunications
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