Okta Q3 Earnings: Revenue, EPS Top Estimates, But Shares Creep Lower

Core Insights - Okta Inc reported a strong performance for Q3 fiscal 2026, exceeding both revenue and earnings expectations [1][2] Financial Performance - Q3 revenue reached $742 million, surpassing analyst estimates of $730.36 million [2] - Adjusted earnings for the third quarter were 82 cents per share, exceeding expectations of 76 cents per share [2] - Total revenue increased by 12% year-over-year, with subscription revenue rising by 11% [3] - Remaining performance obligations at the end of the quarter totaled $4.29 billion, reflecting a 17% year-over-year increase [3] - Net cash provided by operations was $218 million, up from $159 million in the same quarter last year [3] - Free cash flow for Q3 was $211 million, an increase from $154 million year-over-year [3] Cash Position and Outlook - Okta ended the quarter with approximately $2.46 billion in cash, cash equivalents, and short-term investments [4] - The company expects Q4 revenue to be between $748 million and $750 million, compared to estimates of $737.92 million [4] - Projected Q4 adjusted earnings are between 84 to 85 cents per share, aligning with estimates of 84 cents per share [4] - Full-year revenue guidance has been raised to between $2.906 billion and $2.908 billion, compared to previous estimates of approximately $2.89 billion [5] - Full-year earnings guidance is now expected to be between $3.43 and $3.44 per share, up from estimates of $3.37 per share [5] Market Reaction - Following the earnings report, Okta shares fell by 4.31% in after-hours trading, priced at $78.34 [6]