Shares of Okta Inc. rose over 7% in pre-market trading on Friday after the identity management company reported fiscal Q1 2027 results that beat analyst expectations on revenue and adjusted earnings per share.
Revenue came in at $765 million, up 11% year-over-year and above the consensus estimate of $752 million. Adjusted EPS was $0.91, topping the consensus of $0.85.
Subscription revenue reached $750 million, up 11.4% YoY. Current remaining performance obligations (cRPO), a key forward-looking metric, grew 12% YoY to $2.50 billion, exceeding estimates.
Okta added 80 customers with annual contract values above $100,000, bringing the total to 5,180. Dollar-based net retention rate improved to 107%.
CFO Brett Tighe said: "Last year's go-to-market specialization is driving tangible results. Our new product portfolio, especially Okta Identity Governance, is resonating with customers."
For Q2, Okta guided revenue of $790-794 million and adjusted EPS of $0.95-0.97. For full fiscal 2027, it expects revenue of $3.185-3.205 billion and EPS of $3.79-3.87.
Raymond James reiterated an "outperform" rating and raised its price target to $115 from $85.
