Okta Stock Is Tumbling Wednesday: What's Going On?

Okta Inc (NASDAQ:OKTA) shares are falling Wednesday after the company reported first-quarter financial results and provided cautious forward-looking commentary. Multiple analysts also lowered price targets following the report.

What Happened: Okta reported first-quarter revenue of $688 million and adjusted earnings of 86 cents per share, beating analyst estimates, according to Benzinga Pro.

Total revenue and subscription revenue increased 12% year-over-year. Remaining performance obligations were up 21% year-over-year to $4.08 billion.

Net cash provided by operations was $241 million and free cash flow totaled $238 million in the quarter. Okta ended the period with approximately $2.73 billion in cash, cash equivalents and short-term investments.

Okta expects second-quarter revenue of $710 million to $712 million, and full-year 2026 revenue of $2.85 billion to $2.86 billion. The company also guided for second-quarter adjusted earnings of 83 to 84 cents per share, and full-year adjusted earnings of $3.23 to $3.28 per share.

The company said it’s now factoring in potential risks related to macroeconomic uncertainty for the remainder of the year. 

“The world's biggest organizations continue to turn to Okta to solve identity security across their workforces, customers, and AI use cases,” said Todd McKinnon, co-founder and CEO of Okta.

“We remain focused on driving profitable growth, accelerating innovation, and delivering the only modern, unified identity security platform for our customers.”

Related Link: DHT Holdings Posts Weak Sales, Joins Compass Diversified, Okta And Other Big Stocks Moving Lower 

Analyst Changes:

• Jefferies analyst Brent Thill maintained a Hold and lowered the price target from $135 to $130.

• Barclays analyst Saket Kalia maintained an Equal-Weight and lowered the price target from $135 to $120.

• Guggenheim analyst John Difucci maintained a Buy and lowered the price target from $140 to $138.

• UBS analyst Roger Boyd maintained a Buy and lowered the price target from $150 to $130.

• DA Davidson analyst Rudy Kessinger maintained a Buy and lowered the price target from $145 to $140.

• RBC Capital analyst Matthew Hedberg maintained an Outperform and lowered the price target from $143 to $135.

• Stephens & Co. analyst Todd Weller reiterated Equal-Weight and maintained a price target of $127.

• Wells Fargo analyst Andrew Nowinski maintained an Equal-Weight and raised the price target from $100 to $110.

• Canaccord Genuity analyst Richard Davis maintained a Hold and raised the price target from $100 to $115.

OKTA Price Action: Okta shares were down 13.5% Wednesday, trading at $108.58 at the time of publication, according to Benzinga Pro.

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Photo: Michael Vi/Shutterstock.