TLDR
- BMO upgraded Okta (OKTA) to Outperform and raised its price target to $97, up from Market Perform
- Bernstein raised its price target to $134 from $129, maintaining an Outperform rating
- Q4 FY2026 subscription revenue grew 11.5% year-over-year, beating guidance midpoint by $12 million
- 30% of Q4 bookings came from Okta’s broader platform, up from 10–15% in recent quarters
- Multiple other analysts adjusted price targets, with views ranging from $80 to $134
Okta had a busy Friday. Two analyst upgrades or price target raises landed before markets opened, and the stock moved fractionally higher in early trading.
BMO analyst Keith Bachman upgraded Okta to Outperform from Market Perform. He also raised his price target to $97. Bachman said he sees identity management as critical for the growing adoption of AI agents.
“We believe identity management is critical for agent adoption, and we think Okta will be one of the companies that nurtures, and benefits from, agent growth,” Bachman wrote.
He added that Okta’s Identity Governance product has a long runway ahead of it. BMO estimates Okta has a reasonable chance of delivering flat to modestly higher subscription revenue growth in FY27 compared to FY26.
Separately, Bernstein raised its price target on Okta to $134 from $129, keeping its Outperform rating in place. The firm pointed to Q4 FY2026 results as the reason.
Okta’s subscription revenue grew 11.5% year-over-year in Q4, up from 11.2% the prior quarter. The company beat the midpoint of its own guidance by $12 million.
What Drove the Q4 Beat
Bernstein credited three things for the stronger results. First, improving momentum in net new customers alongside low churn. Second, continued demand across Okta’s platform. Third, the company lapping headwinds from oversized three-year contracts signed during the COVID period.
One number stood out. Platform bookings made up 30% of Q4 bookings, compared to 10–15% in recent quarters. That shift matters because it suggests customers are buying more of Okta’s product suite, not just its core offering.
Bernstein also noted that the stronger results came despite headwinds from U.S. federal government downsizing tied to DOGE. That may have cost Okta around $30 million in annual recurring revenue in Q3.
Okta’s gross profit margin sits at 77%, and its PEG ratio is reported at 0.03, which InvestingPro lists as undervalued.
Where Other Analysts Stand
Not all reactions to Okta’s recent results were as upbeat.
D.A. Davidson kept a Buy rating with a $110 price target. Needham held its Buy rating but trimmed its target to $90, citing conservative guidance from management. Stephens lowered its target to $95 but kept an Overweight rating.
Scotiabank cut its target to $80 while maintaining a Sector Perform rating. Wolfe Research lowered its target to $90 but kept an Outperform rating.
For FY2027, Okta guided for roughly 10% subscription revenue growth year-over-year, slightly above analyst consensus but still viewed as cautious by some on the Street.
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