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Oct 31, 2025
Okta Q3 2026 Earnings Report
Okta reported strong third quarter results driven by growth in subscription revenue and large customer momentum.
Key Takeaways
Okta delivered solid Q3 FY26 results, with revenue rising to $742M and both GAAP and non-GAAP profitability improving significantly. The company generated strong cash flow and saw continued traction with large enterprises and new product offerings.
GAAP net income improved to $43M from $16M a year ago
Free cash flow rose to $211M, representing a 28% margin
Subscription revenue reached $724M, up from $651M YoY
Strong large customer momentum and product adoption fueled growth
Revenue by Segment
Forward Guidance
Okta provided Q4 and FY26 guidance reflecting steady growth while maintaining profitability and cash generation.
Positive Outlook
- Q4 revenue projected between $748M and $750M
- Q4 non-GAAP operating income expected between $189M and $191M
- Q4 non-GAAP EPS guided to $0.84–$0.85
- Full-year revenue expected to reach up to $2.908B
- Strong non-GAAP operating margin guidance at 26%
Challenges Ahead
- Slower revenue growth rate of ~10% YoY in Q4
- Current RPO guidance implies deceleration to ~9% YoY
- Macroeconomic uncertainty continues to affect forward visibility
- FY26 guidance reflects cautious outlook amid market conditions
- Operating expenses remain elevated despite efficiencies
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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