Okta Earnings: Conservative Guidance Leaves Room For Upside
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Okta's fiscal 2026 guidance indicates a shift from high growth, but with a 19x forward free cash flow, it remains a compelling buy. Despite conservative guidance, revenue growth is expected to reach 10% y/y, with analysts likely to raise estimates. Okta's strong financials include $700 million in FY25 free cash flow and a potential 29% margin in FY26.
December 04, 2024 | 10:00 am
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Okta's fiscal 2026 guidance suggests a shift from high growth, but remains attractive at 19x forward free cash flow. Revenue growth is expected to reach 10% y/y, with analysts likely to raise estimates. Strong financials include $700 million in FY25 free cash flow and a potential 29% margin in FY26.
Okta's guidance indicates a shift from high growth, but its valuation at 19x forward free cash flow remains attractive. The expected 10% y/y revenue growth and strong financials, including $700 million in FY25 free cash flow and a potential 29% margin in FY26, suggest potential for upside. Analysts are likely to raise estimates, which could positively impact the stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100