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Apr 30

Okta Q1 2026 Earnings Report

Okta reported record operating profitability and a return to net income in Q1 FY26.

Key Takeaways

Okta delivered strong financial results in Q1 FY26, with record GAAP and non-GAAP operating profits, robust free cash flow, and positive net income, reflecting continued business momentum and operational discipline.

Total revenue grew to $688 million, driven by strength in subscription revenue.

Okta reported a GAAP net income of $62 million, reversing a loss from the prior year.

Free cash flow reached $238 million, supported by solid operating cash flow.

RPO climbed to $4.084 billion, indicating strong future subscription demand.

Total Revenue
$688M
Previous year: $617M
+11.5%
EPS
$0.86
Previous year: $0.65
+32.3%
Remaining performance obligations
$4.08B
Previous year: $3.37B
+21.0%
Current RPO
$2.23B
Previous year: $1.95B
+14.0%
Operating Cash Flow
$241M
Previous year: $219M
+10.0%
Gross Profit
$533M
Previous year: $462M
+15.4%
Cash and Equivalents
$494M
Previous year: $322M
+53.4%
Free Cash Flow
$238M
Previous year: $214M
+11.2%
Total Assets
$9.37B
Previous year: $8.96B
+4.6%

Okta

Okta

Okta Revenue by Segment

Forward Guidance

Okta expects moderate revenue growth and continued profitability in Q2 FY26, while remaining cautious about macroeconomic risks.

Positive Outlook

  • Q2 revenue projected at $710–$712 million
  • Current RPO expected to reach up to $2.205 billion
  • Non-GAAP operating margin projected at 26%
  • EPS expected between $0.83–$0.84
  • Free cash flow margin projected at ~19%

Challenges Ahead

  • Guidance reflects caution due to macroeconomic uncertainty
  • No GAAP EPS guidance provided
  • Potential risks tied to new go-to-market strategy rollout
  • Subscription growth guidance lower than prior periods
  • Continued investment needs may affect margin expansion

Revenue & Expenses

Visualization of income flow from segment revenue to net income