Okta Inc (NASDAQ:OKTA) stock rose 8.63% (As on March 5, 11:37:40 AM UTC-4, Source: Google Finance) after the company issued better-than-expected fourth-quarter results. Subscription revenue, which accounts for the bulk of total revenue, grew 11% to $747 million. cRPO, which represents subscription backlog expected to be recognized over the next 12 months, was $2.513 billion, up 12% compared to the fourth quarter of fiscal 2025. Remaining performance obligations grew 15% to $4.827 billion. Okta ended the quarter with $2.553 billion in cash, cash equivalents, and short-term investments. Non-GAAP net income was $167 million, compared to non-GAAP net income of $141 million in the fourth quarter of fiscal 2025. Net cash provided by operations was $258 million, or 34% of total revenue, compared to net cash provided by operations of $286 million, or 42% of total revenue, in the fourth quarter of fiscal 2025. Free cash flow was $252 million, or 33% of total revenue, compared to $284 million, or 42% of total revenue, in the fourth quarter of fiscal 2025.

OKTA in the fourth quarter of FY26 has reported the adjusted earnings per share of $0.90, beating the analysts’ estimates for the adjusted earnings per share of $0.85. The company had reported the adjusted revenue growth of 11 percent to $761 million in the fourth quarter of FY26, beating the analysts’ estimates for revenue of $749.53 million. Non-GAAP operating income was $202 million, or 26% of total revenue, compared to a non-GAAP operating income of $168 million, or 25% of total revenue, in the fourth quarter of fiscal 2025.

For fiscal 2027, Okta 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. The company provided a revenue outlook of $3.17 billion to $3.19 billion, compared with consensus estimates of $3.17 billion. Okta noted that its decision to shift its professional services business to partners would create an approximately one percentage point headwind to revenue growth. For fiscal 2027, Non-GAAP operating income is expected to be of $795 million to $815 million, which yields a non-GAAP operating margin of 25% to 26% and Non-GAAP free cash flow of $850 million to $880 million.

Okta expects current-quarter revenue of $749 million to $753 million, Current RPO of $2.440 billion to $2.450 billion and adjusted EPS to be in the range of $0.84 to $0.86.