Okta Delivers Record Q1 Profitability

(NASDAQ:OKTA) reported its fiscal 2026 first-quarter earnings on May 27, 2025, delivering 12% year-over-year total revenue growth, record profitability, and strong cash flow. Management introduced suite-based pricing, announced accelerating product innovation in both human and nonhuman identity, and issued full-year fiscal 2026 guidance for 9%-10% revenue growth, a 25% adjusted operating margin, and a 27% free cash flow margin.

The call highlighted momentum with large enterprises, U.S. public sector wins, and new products, while also embedding increased macro and go-to-market conservatism into forward guidance.

Okta restructured its salesforce in Q1 by further specializing teams into dedicated Okta and Auth0 sellers, building upon prior successful specialization initiatives in the U.S. small- and medium-sized businesses (SMB) and public sector verticals. Results included strong new business performance and large public sector wins. However, management cited anticipated near-term uncertainty in federal contracts due to one-year mandates and a dynamic macroeconomic environment.

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Source Fool.com