Okta Shares Soared on Management's Outlook. Is It Too Late to Buy the Stock?

Core Insights - Okta reported strong fiscal Q4 2025 results, exceeding analyst expectations and providing positive guidance for future growth [1][2] - The company has recovered from a significant cybersecurity incident in 2023, which had negatively impacted its stock price [1] Financial Performance - Fiscal Q4 revenue increased by 13% year over year to $682 million, surpassing guidance and analyst consensus [2] - Subscription revenue also rose by 13% to $670 million, with adjusted EPS jumping 24% to $0.78 [2] Customer Metrics - Okta's net dollar retention rate was 107%, with expectations to maintain this level in fiscal 2026 [3] - The company added approximately 200 customers in the quarter, totaling 19,650, with a 4% year-over-year increase [4] - Customers with annual contract values (ACVs) above $100,000 rose by 7% to 4,800, while those with ACVs over $1 million increased by 22% to 470 [4] Product Development - The Okta Identity Governance solution has gained traction, now serving 1,300 customers with a total ACV exceeding $100 million [5] - A new product, Auth for GenAI, is set to launch, aimed at helping customers build and scale generative AI applications [5] Future Guidance - Management projects fiscal 2026 revenue between $2.85 billion and $2.86 billion, indicating growth of 9% to 10% [7] - For fiscal Q1 2026, revenue is expected to grow by about 10% to between $678 million and $680 million [8] Valuation - Okta's forward price-to-sales (P/S) ratio is approximately 6 times fiscal 2026 analyst estimates, suggesting reasonable valuation compared to other cybersecurity stocks [9]