Okta (NASDAQ:OKTA) just delivered a blowout quarter, sending its stock soaring nearly 19% at 10.35am today, as investors cheered stronger-than-expected earnings. The identity security giant posted EPS of 78 cents on $682 million in revenue, easily beating Wall Street estimates of 74 cents and $669 million. CEO Todd McKinnon called it a breakout quarter, highlighting strength across the board. Okta also raised its full-year revenue outlook to as high as $2.86 billion, signaling confidence in its momentum. Despite an uncertain macro backdrop, the company’s positioning in AI-driven security solutions continues to fuel optimism.
Warning! GuruFocus has detected 3 Warning Sign with OKTA.
Beyond the numbers, Okta hit a major milestonecrossing $1 billion in sales on AWS Marketplace since first listing its identity solutions in 2020. That growth is set to accelerate under a new strategic collaboration with Amazon Web Services, which aims to expand secure identity adoption globally. Okta is also embedding AI deeper into its products, leveraging Amazon Bedrock for its customer identity platform and serving as an identity provider for Amazon’s generative AI assistant, Amazon Q. These moves put Okta at the center of AI-driven security innovation, a space that’s rapidly becoming mission-critical for enterprises.
With demand for digital identity security surging, Okta’s strong execution and deepening ties with AWS make it a standout in the space. The company’s expansion into AI-powered threat detection and cloud security integrations is setting the stage for long-term growth. Investors are taking notice, its latest results suggest there’s plenty of runway ahead.
This article first appeared on GuruFocus.
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Tesla
could have less room to run in 2025 as U.S. tariffs take hold, according to Bank of America.
The firm lowered its price target on the electric vehicle stock to $380 per share from $490 and reiterated its neutral rating. BofA’s forecast implies more than 33% upside from Monday’s close.
Analyst John Murphy attributed the lower price objective to “renewed uncertainty” in 2025, and pointed to President Donald Trump’s tariffs as a headwind for production in North America. Levies on Canadian, Mexican and Chinese imports took hold on Tuesday, with China and Canada issuing retaliatory duties.
“We note that potential tariffs on Mexico and Canada pose significant risk to our NA production estimates and could create a supply shock similar to COVID,” Murphy said. The analyst also pointed to a slowing of Tesla’s vehicle production in Europe year over year, as well as a lack of news on the company’s low-cost model and “sentiment on the brand potentially souring.”
The analyst noted that he expects overall industry dynamics to be inconsistent in 2025.
“Early in 2025, there are material and potentially disruptive changeovers at F (Ford Motor, Kentucky Truck) and TSLA (Tesla, Model Y globally), while GM (General Motors) is largely clear,” Murphy said. “The resulting volume disruption and macroeconomic headwinds should continue to haunt suppliers, but cost actions flowing through the P&L should support flat to up margins.”
Tesla stock has pulled back nearly 30% in 2025.
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Okta Earnings Top Estimates. Cybersecurity Stock Pops On Outlook.
SPOTLIGHT: Trump Tariffs: Mexico, Canada, China Shots Fired
Okta (OKTA) stock popped on Tuesday after the cybersecurity firm reported fourth-quarter earnings and revenue that handily beat consensus estimates. Updated fiscal 2026 revenue guidance for Okta stock came in well above views.
Reported after the market close, Okta earnings were 78 cents per share on an adjusted basis for the quarter ending Jan. 31, up 24% from a year earlier. San Francisco-based Okta said revenue climbed 13% to $682 million.
Analysts had expected Okta earnings of 74 cents per share on revenue of $669 million.
A key financial metric — current remaining performance obligations — known as CRPO bookings, topped views. In Q4, CRPO rose 15% to $2.248 billion vs. estimates of $2.138 billion. CRPO bookings are an aggregate of deferred revenue and order backlog.
For fiscal 2026, which starts with the current quarter ending in April, Okta predicted revenue in a range of $2.85 billion to 2.86 billion, topping estimates of $2.79 billion.
“Okta delivered a strong quarter and outperformed expectations on all metrics, with CRPO accelerating nicely and fiscal 2026 guidance being raised from the first look given in Q3 and above consensus expectations,” said RBC Capital analyst Matthew Hedberg in a research note.
On the stock market today, Okta stock popped more than 12% to near 98 in early trading. OKTA had advanced 15% 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.
“The company is further specializing go-to-market efforts between Okta and Auth0, a reversal from previous efforts to drive integration,” said Raymond James analyst Adam Tindle in a report.
“Okta also reduced headcount in February with the intention to reallocate resources toward growth initiatives. As a result, management expects to incur an $11 million cash charge in Q1.”
Heading into the earnings report, Okta owned a Relative Strength Rating of 78 out of a best-possible 99, according to IBD Stock Checkup.
Growing competition from Microsoft (MSFT) is one headwind for Okta stock.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
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