Okta's Strong Q3 Performance: Okta (OKTA) reported better-than-expected earnings and revenue for the third quarter, prompting management to raise its outlook, particularly due to the success of new AI-driven security products.
Valuation and Growth Potential: Despite a modest year-to-date share price return, analysts suggest Okta's stock is undervalued with a fair value estimate of $118.80, indicating significant upside potential if the company's growth strategies succeed.
AI and Security Innovations: Okta is focusing on advanced identity governance and security solutions, such as Cross App Access and Auth0 for AI Agents, which could lead to incremental growth and improved profit margins.
Valuation Risks: Okta's high price-to-earnings ratio of 78 times raises concerns about valuation risk, especially if growth expectations are not met, contrasting sharply with the industry average of 30 times.
Wall Street analysts forecast OKTA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for OKTA is 120.93 USD with a low forecast of 75.00 USD and a high forecast of 145.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
33 Analyst Rating
Wall Street analysts forecast OKTA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for OKTA is 120.93 USD with a low forecast of 75.00 USD and a high forecast of 145.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
21 Buy
11 Hold
1 Sell
Moderate Buy
Current: 93.840
Low
75.00
Averages
120.93
High
145.00
Current: 93.840
Low
75.00
Averages
120.93
High
145.00
RBC Capital
Matthew Hedberg
Outperform
maintain
$97 -> $108
2026-01-05
New
Reason
RBC Capital
Matthew Hedberg
Price Target
$97 -> $108
2026-01-05
New
maintain
Outperform
Reason
RBC Capital analyst Matthew Hedberg raised the firm's price target on Okta to $108 from $97 and keeps an Outperform rating on the shares. 2026 is likely to be a year when AI tailwinds become more evident for companies well positioned for enterprise AI adoption, while less prepared peers may remain pressured by the "AI is the death of software" narrative, the analyst tells investors in a research note. Enterprise spending appears to be stabilizing and improving in select areas, with GenAI driving innovation even as management teams remain conservative in early 2026 guidance, the firm says.
Piper Sandler
Neutral
maintain
$95 -> $100
2026-01-05
New
Reason
Piper Sandler
Price Target
$95 -> $100
2026-01-05
New
maintain
Neutral
Reason
Piper Sandler raised the firm's price target on Okta to $100 from $95 and keeps a Neutral rating on the shares. The firm says 2025 proved to be a tough year for its Security & Infrastructure Software coverage, with the average name showing negative performance and only four names outperforming the NASDAQ. Piper is cautiously optimistic for a better year in 2026, with many names entering the year at interesting valuation levels setup well to be longer-term GenAI winners, despite monetization at the software layer not yet occurring at scale.
Stephens
Equal Weight
maintain
2025-12-29
Reason
Stephens
Price Target
2025-12-29
maintain
Equal Weight
Reason
Stephens walked away from the firm's recent fireside chat with Okta with a greater appreciation for the company's growth opportunity with Auth0, says the analyst, who believes a significant, underpenetrated growth opportunity remains with roughly 50% of the Customer Identity and Access Management market still relying on homegrown solutions. The timing and magnitude remain uncertain, but the firm believes Auth0 "adds to the case for Okta approaching a potential growth inflection point," adds the analyst, who maintains an Equal Weight rating on Okta shares.
Jefferies
Joseph Gallo
Hold -> Buy
upgrade
$90 -> $125
2025-12-16
Reason
Jefferies
Joseph Gallo
Price Target
$90 -> $125
2025-12-16
upgrade
Hold -> Buy
Reason
Jefferies analyst Joseph Gallo upgraded Okta to Buy from Hold with a price target of $125, up from $90, as part of its 2026 software outlook. Okta has a "significant opportunity" as it attempts to build out a complete identity platform and capture growing agentic demand, the analyst tells investors in a research note. The firm believes the stock's value dislocation "has become too significant" as the company faces several fundamental catalysts in fiscal 2027 from improved execution, secular agentic tailwinds, and potential for positive estimate revisions.
About OKTA
Okta, Inc. is an independent identity partner. The Company’s Okta Platform and Auth () Platform enable its customers to securely connect the right people to the right technologies and services at the right time. It offers independent and neutral cloud-based identity solutions that allow customers to integrate with nearly any application, service or cloud that they choose through its platforms. Organizations use the Company’s Identity Platform to collaborate with their partners, and to provide their customers with secure experiences in the cloud and via mobile devices. Developers leverage the Workforce Identity Cloud and Customer Identity Cloud, powered by Auth (), to securely and efficiently embed identity into the software they build, allowing them to innovate and focus on their core missions. Its Okta Platform enables its customers to automate and secure access across their ecosystem of employees, contractors and partners, increasing collaboration across their workforces.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
