Okta Inc. (NASDAQ: OKTA) saw its shares plummet 11.77% in after-hours trading on Tuesday, despite reporting better-than-expected first-quarter results. The identity management company's stock dropped to $112.45 following the release of its financial report, which revealed a mix of positive results and cautious outlook.

For the first quarter of fiscal year 2026, Okta reported revenue of $688 million, surpassing analyst estimates of $680.3 million and marking a 12% increase from the previous year. The company's adjusted earnings per share came in at $0.86, significantly higher than the FactSet consensus of $0.77. However, Okta's GAAP earnings per share of $0.35 fell short of the $0.77 estimate, which may have contributed to investor concerns.

Despite raising its full-year earnings per share guidance to a range of $3.23 to $3.28, up from the previous $3.15 to $3.20, Okta's cautious commentary regarding growth and macroeconomic uncertainty appears to have spooked investors. The company maintained its revenue projection for fiscal year 2026 at $2.85 billion to $2.86 billion, suggesting potential headwinds in customer growth and market expansion. Okta's management acknowledged challenges in attracting new customers and retaining existing ones, as well as potential issues related to technology performance and cybersecurity, which may have further dampened investor sentiment.