Identity management stock Okta has underperformed in 2025. Despite a rapidly escalating enterprise threat landscape, the stock has struggled to sustain positive momentum. Okta’s third-quarter fiscal 2026 earnings1 were very respectable, however, and Wall Street analysts remain bullish on the name. Here’s a look at some highlights from the Q3 earnings and the latest share price targets from analysts covering the stock.
A Beat and Raise for Q3
For Q3 (the quarter ended October 31), Okta generated revenue of $742 million. This figure was up 12% year on year and ahead of the consensus forecast of $730 million. Adjusted earnings per share amounted to 82 cents versus 67 cents a year earlier. Analysts had been expecting 76 cents.
Looking ahead, Okta said that it’s expecting revenue of between $748 million and $750 million along with adjusted earnings per share of 84 cents to 85 cents for the current quarter. Going into the print, analysts had been expecting revenue of $738 million and EPS of 84 cents for the period. At the end of Q3, the company’s subscription backlog (remaining performance obligations) was $4.3 billion. This was up 17% year on year.
It’s worth noting that Okta increased its guidance for the full 2026 fiscal year. It now expects total revenue of $2.906 billion to $2.908 billion, representing growth of 11% year on year. Its previous guidance2 here was $2.875 billion to $2.885 billion. Non-GAAP diluted net income per share for the year is now expected to be between $3.43 and $3.44. Previous guidance was $3.33 to $3.38.
Growth Potential from AI Agents
On the Q3 earnings call3, management highlighted the substantial opportunity that could potentially lie ahead due to the rise of AI agents. Okta has developed a platform (Auth0 for AI Agents) to help build and manage AI agents securely and it believes that it could significantly increase its total addressable market (TAM).
According to CEO Todd McKinnon, the company has experienced a surge in inbound interest for its agentic security solutions in recent months. Already, the company has engaged with over 100 current customers in relation to the technology.
Okta Stock Price Forecasts
Since Okta’s Q3 earnings, a number of Wall Street firms have slightly lowered their price targets for the cybersecurity stock. However, in most cases, analysts’ price targets are well above the current share price. At present, the average price target4 for Okta is $118. That’s roughly 50% above the current share price so the stock could be worth keeping an eye on.
Footnotes:
1Okta News Details, Okta Announces Third Quarter Fiscal Year 2026 Financial Results, as of December 2, 2025
2Okta News Details, Okta Announces Second Quarter Fiscal Year 2026 Financial Results, as of August 26, 2025
3Investing.com, Earnings call transcript: Okta’s Q3 2026 solid results boost stock by 1.96%, as of December 3, 2025
4Investing.com, Okta Inc (OKTA), as of December 3, 2025
