AI Takeaway
Okta delivered a strong FY2026, achieving its first full-year GAAP operating profit of $149M and a 739% surge in net income to $235M on 11.8% revenue growth to $2.92B, signaling a meaningful inflection toward profitability.
Revenue
$2.92B
++11.84% YoY
EPS (Basic)
$1.33
++731.25% YoY
Gross Margin
77.4%
++1.03% YoY
Operating Income
$149M
++301.35% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
Okta grew total revenue 11.8% year-over-year to $2.92B in FY2026, up from $2.61B in FY2025, reflecting continued demand for its identity and access management platform as enterprises prioritize cybersecurity and workforce identity solutions.
Source: Source: 10-K Income Statement (XBRL Financial Data)
Operating income turned decisively positive at $149M (operating margin of 5.1%) compared to an operating loss of $74M in FY2025, representing a 7.9 percentage point margin improvement and a critical milestone in Okta's path to sustained profitability.
Source: Source: 10-K Income Statement (XBRL Financial Data)
Gross margin improved to 77.4% from 76.3% year-over-year, driven by a 13.4% increase in gross profit to $2.26B while cost of revenue grew at a slower 7.0%, indicating better operating leverage in Okta's cloud delivery model.
Source: Source: 10-K Income Statement & Key Ratios (XBRL Financial Data)
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Upgrade to unlockOkta operates in a highly competitive identity and access management market facing rivals including Microsoft, which bundles identity services into its broader enterprise suite. Pricing pressure and competitive displacement risk could limit Okta's ability to grow average contract values or retain customers at renewal.
Source: Source: 10-K Risk Factors (inferred from financial data and industry context)
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Upgrade to unlockReported EPS of $0.90 versus the $0.86 analyst consensus — a +4.2% beat for FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $2.92B | $2.61B | +11.84% |
Cost of Revenue | $661M | $618M | +6.96% |
Gross Profit | $2.26B | $1.99B | +13.35% |
Operating Income | $149M | $-74M | +301.35% |
Net Income | $235M | $28M | +739.29% |
EPS (Basic) | $1.33 | $0.16 | +731.25% |
EPS (Diluted) | $1.31 | $0.06 | +2083.33% |
R&D Expense | $639M | $642M | -0.47% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $9.71B | $9.44B | +2.89% |
Current Assets | $3.64B | $3.42B | +6.67% |
Total Liabilities | $2.71B | $3.03B | -10.59% |
Current Liabilities | $2.55B | $2.52B | +1.23% |
Stockholders' Equity | $7B | $6.41B | +9.27% |
Cash & Equivalents | $858M | $409M | +109.78% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $884M | $750M | +17.87% |
Investing Cash Flow | $271M | $-314M | +186.31% |
Financing Cash Flow | $-720M | $-359M | -100.56% |
Share Buybacks | $73M | $0 | — |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 77.4% | 76.3% | +1.03% |
Operating Margin | 5.1% | -2.8% | +7.94% |
Net Margin | 8.1% | — | — |
ROE | 3.4% | — | — |
ROA | 2.4% | — | — |
Current Ratio | $1.427 | — | — |
Debt to Equity | $0.387 | — | — |
Yes, Okta achieved GAAP operating profitability for the first time in FY2026, reporting operating income of $149M compared to an operating loss of $74M in FY2025. Net income also surged 739% to $235M, marking a major financial milestone for the company.
Okta's revenue grew 11.8% year-over-year to $2.92B in FY2026, up from $2.61B in FY2025. While this represents a moderation from prior hypergrowth rates, it reflects continued enterprise adoption of Okta's identity and access management platform.
The headline takeaway is Okta's first full-year GAAP operating profit of $149M and a 739% jump in net income to $235M, alongside strong operating cash flow of $884M. Gross margin also improved to 77.4%, and cash & equivalents more than doubled to $858M, signaling a healthier financial profile.
Key risks include intense competition from Microsoft and other identity vendors, the ongoing threat of cybersecurity breaches that could damage customer trust (given Okta's prior security incidents), and the challenge of sustaining thin operating margins of 5.1% while continuing to invest in growth. Execution on multi-year subscription renewals is also a critical risk for revenue predictability.
Okta's financial health improved significantly in FY2026: cash & equivalents doubled to $858M, total liabilities fell 10.6% to $2.71B, and the debt-to-equity ratio stands at a conservative 0.39x. With $884M in operating cash flow and a current ratio of 1.43x, the company appears well-positioned to fund operations and strategic investments without near-term liquidity concerns.