Octa On Tuesday, the company beat Wall Street’s third-quarter expectations and issued a positive outlook, but its stock fell after the company did not provide guidance for fiscal 2027.
The identity management provider’s stock fell more than 3% in after-hours trading Tuesday.
Here’s how the company performed against LSEG’s estimates:
Earnings per share: 82 cents adjusted, 76 cents expected; Revenue: $742 million, $730 million expected.
Compared to its previous third quarter report, Okta refrained from providing preliminary guidance for the upcoming fiscal year. Finance chief Brett Tighe cited the seasonality of the fourth quarter and said a “certain amount of conservatism” was needed in providing guidance.
During the third quarter, Okta released features that allow businesses to build AI agents and automate tasks.
CEO Todd McKinnon told CNBC that profits from AI agents are not fully factored into results and could exceed the total of Okta’s core addressable market over the next five years.
“We haven’t seen the results yet, but we’re making an investment and taking advantage of this opportunity because we think it’s going to be a big part of our future,” he said in an interview Tuesday.
Revenues increased approximately 12% from $665 million in the same period last year. Net income increased 169% to $43 million, or 24 cents per share, from $16 million (breakeven) a year ago. Subscription revenue rose 11% to $724 million, beating expectations of $715 million.
The cybersecurity company expects revenue of $748 million to $750 million and adjusted earnings of 84 cents to 85 cents per share for the current quarter. Analysts expect fourth-quarter sales of $738 million and EPS of 84 cents.
Return performance obligations, or the company’s subscription balance, rose 17% year over year to $4.29 billion, beating Street estimates of $4.17 billion.
This year has been a blockbuster time for cybersecurity companies, with major acquisition deals from companies including: palo alto networks and google and numerous initial public offerings from this sector.
Okta stock has risen about 4% this year.
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