Okta (OKTA) stock dipped after the cybersecurity firm reported third-quarter earnings and revenue that topped consensus estimates, boosted by its public sector business, while January-ending quarter guidance came in above views.
Reported after the market close on Tuesday, Okta earnings were 82 cents per share on an adjusted basis for the quarter ending Oct. 31, up 22% from a year earlier. The San Francisco-based identity-security firm said revenue climbed 12% to $742 million.
Analysts had expected Okta earnings of 67 cents per share on revenue of $731 million.
A key financial metric, current remaining performance obligations, or CRPO, bookings topped views. In Q3, CRPO rose 13% to $2.328 billion vs. estimates of $2.263 billion. CRPO bookings are an aggregate of deferred revenue and order backlog.
For the current quarter ending in January, Okta predicted revenue of $749 million at the midpoint of guidance versus estimates of $738 million.
On the stock market today, Okta stock dipped more than 2% to 79.60 in extended trading. Okta stock had advanced 3% in 2025 prior to the earnings report.
The company’s security software monitors and manages privileged accounts. Hackers often target employees or management with administrative access to company computer systems.
Heading into the Okta earnings report, the company owned a Composite Strength Rating of 41 out of a best-possible 99, according to IBD Stock Checkup.
Meanwhile, Okta stock holds an Accumulation/Distribution Rating of C-minus. That rating analyzes price and volume changes in a stock over the past 13 weeks of trading. A+ signifies heavy institutional buying; E means heavy selling. Think of a C grade as neutral.
Growing competition from Microsoft (MSFT) is one headwind for Okta stock.
Follow Reinhardt Krause on X, formerly Twitter, @reinhardtk_tech for updates on artificial intelligence, cybersecurity, quantum computing and cloud computing.
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