Okta Inc (NASDAQ:OKTA) delivered a top- and bottom-line beat for the third quarter of fiscal 2026 after the market close on Tuesday. Here’s a rundown of the report.
Q3 Highlights: Okta posted third-quarter revenue of $742 million, beating analyst estimates of $730.36 million, according to Benzinga Pro. Third-quarter adjusted earnings came in at 82 cents per share, beating expectations of 76 cents per share.
The cloud-native cybersecurity company said total revenue was up 12% on a year-over-year basis as subscription revenue increased 11%. Remaining performance obligations totaled $4.29 billion at quarter’s end, up 17% year-over-year.
Net cash provided by operations was $218 million, up from $159 million in the prior year's quarter. Okta generated free cash flow of $211 million in the third quarter, up from $154 million year-over-year.
Okta ended the quarter with approximately $2.46 billion in cash, cash equivalents and short-term investments.
“We delivered another quarter of solid results highlighted by continued strength with large customers, adoption of new products like Okta Identity Governance, and strong cash flow,” said Todd McKinnon, co-founder and CEO of Okta.
“AI agents are redefining how organizations work, and Okta is key to securing this technology transformation.”
Outlook: Okta expects fourth-quarter revenue of $748 million to $750 million versus estimates of $737.92 million. The company anticipates fourth-quarter adjusted earnings of 84 to 85 cents per share versus estimates of 84 cents per share.
Okta also raised its full-year guidance. The company now expects full-year revenue of $2.906 billion to $2.908 billion versus estimates of approximately $2.89 billion. Okta now expects full-year earnings of $3.43 to $3.44 per share versus estimates of $3.37 per share.
Okta executives are set to discuss the quarter on an earnings call with investors and analysts at 5 p.m. ET.
OKTA Price Action: Okta shares were down 4% in Tuesday’s after-hours session, trading at $78.45 at publication time, according to Benzinga Pro.