Okta reported fourth-quarter results that exceeded analyst expectations, with adjusted earnings per share of $0.90 beating the consensus of $0.85 by $0.05. Revenue reached $761 million, surpassing estimates of $749.53 million and representing 11% year-over-year growth. Subscription revenue, which accounts for the bulk of total revenue, grew 11% YoY to $747 million.

For fiscal 2027, the company provided full-year adjusted EPS guidance of $3.74 to $3.82, with a midpoint of $3.78 that exceeds the analyst consensus of $3.67. However, revenue outlook of $3.17 billion to $3.19 billion essentially matched the consensus estimate of $3.17 billion, representing 9% YoY growth. The company noted that shifting its professional services business to partners would create an approximately one percentage point headwind to revenue growth.

Despite the earnings beat, Okta shares slipped 1% in after-hours trading as investors digested the cautious outlook. The identity management company generated operating cash flow of $258 million and free cash flow of $252 million during the fourth quarter. Remaining performance obligations grew 15% YoY to $4.827 billion, while current remaining performance obligations increased 12% YoY to $2.513 billion.