Okta, Inc. (NASDAQ:OKTA) stock is trading higher on Wednesday after the company reported better-than-expected earnings for the 2025 fiscal-year third quarter and issued guidance above estimates on Tuesday after the market closed.

The Details: Okta stock rose about 19% in after-hours trading on Tuesday. Shares continue to climb into Wednesday morning following the earnings report. The earnings report included adjusted earnings per share of 67 cents, beating analyst estimates of 58 cents.

Furthermore, the company reported total revenue of $665.0 million, beating analyst estimates of $649.70 million and representing a 14% year-over-year growth. Okta reported subscription revenue of $651 million, also representing a 14% year-over-year growth.

Okta reported other key pieces of data, including a subscription backlog of $3.65 billion. In addition, it reported cash, cash equivalents and short-term investments of $2.24 billion and net cash provided by operations of $159 million.

"Our solid Q3 results were underpinned by continued strong profitability and cash flow," said Todd McKinnon, CEO and co-founder of Okta.

"The focused investments we've made in our partner ecosystem, the public sector vertical, and large customers are materializing in our business with each of these areas contributing meaningfully to top-line growth. Okta's commitment to innovation and elevating identity security is resonating with customers of all sizes as they look to Okta to modernize their identity infrastructure."

Okta issued guidance for the 2025 fiscal-year fourth-quarter. It sees revenue of $667 million to $669 million versus analyst estimates of $650.64 million. Okta anticipates adjusted earnings per share between 73 and 74 cents versus analyst estimates of 67 cents.

Additionally, the company issued guidance for the full 2025 fiscal-year. Okta expects revenue from $2.595 billion to $2.597 versus analyst estimates of $2.56 billion. It sees adjusted earnings per share from $2.75 to $2.76 versus analyst estimates of $2.61.

Analyst Changes: Following the earnings report, multiple analysts issued price target adjustments.

• Barclays analyst Saket Kalia maintained an Equal-Weight rating on Okta and raised the price target from $81 to $96.
• Needham analyst Mike Cikos maintained a Buy rating on Okta and raised the price target from $100 to $115.
• WestPark Capital analyst Casey Ryan reiterated a Buy rating on Okta and maintained a $140 price target.
• Baird analyst Shrenik Kothari maintained an Outperform rating on Okta and raised the price target from $95 to $105.
• Morgan Stanley analyst Simeon Gutman maintained an Overweight rating on Okta and raised the price target from $97 to $106.

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OKTA Price Action: At the time of publication, Okta stock is trading 4.56% higher at $85.46, according to data from Benzinga Pro.

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