Okta Stock Rises on Strong Results, Outlook on Rising Subscriptions

• Okta reported earnings and revenue that beat estimates as the enterprise security software provider’s subscriptions grew.

• The company also forecast adjusted earnings per share and revenue for the current quarter that were above forecasts.

• CEO Todd McKinnon said the results were “supported by continued strong profitability and cash flow.”

Okta shares (OKTA) rose on Wednesday, a day after the enterprise security software provider reported better-than-expected results and guidance for the current quarter as subscription revenue rose.

The company reported adjusted earnings per share (EPS) of $0.67 for the third quarter of fiscal 2025, with revenue increasing 14% year over year to $665 million. Both beat consensus estimates from analysts surveyed by Visible Alpha. Subscription revenue rose 14% to $651 million.

Chief Executive Officer (CEO) Todd McKinnon said the results were “underpinned by continued strong profitability and cash flow.” McKinnon added that revenue growth was driven by “targeted investments we have made in our partner ecosystem and the public sector, and our business is creating large customers.”

Okta expects fourth-quarter adjusted earnings per share in the range of $0.73 to $0.74 and revenue of $667 million to $669 million, above forecasts.

The news sent Okta shares up 4% to $85.03 about 30 minutes after the opening bell on Wednesday, but are still down about 6% for the year.

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