Core Viewpoint - Okta (OKTA) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of earnings estimate revisions, which are strongly correlated with near-term stock price movements [4][6]. - Rising earnings estimates for Okta suggest an improvement in the company's underlying business, likely leading to increased stock prices [5]. Recent Performance and Projections - For the fiscal year ending January 2026, Okta is expected to earn $3.27 per share, reflecting a year-over-year increase of 16.4% [8]. - Over the past three months, the Zacks Consensus Estimate for Okta has surged by 92.4%, indicating strong upward revisions by analysts [8]. Zacks Rank System Overview - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with only the top 20% receiving a 'Strong Buy' or 'Buy' rating [9][10]. - Okta's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Financial Performance - Okta Inc. reported a fiscal first-quarter profit of $62 million, translating to earnings of 35 cents per share. Adjusted earnings were 86 cents per share, surpassing Wall Street expectations of 77 cents per share from 14 analysts [1][2] - The company posted revenue of $688 million for the quarter, exceeding the forecast of $679.7 million from 13 analysts [2] Future Guidance - For the current quarter ending in July, Okta expects per-share earnings to range from 83 cents to 84 cents, with revenue anticipated between $710 million and $712 million for the fiscal second quarter [2] - The company projects full-year earnings in the range of $3.23 to $3.28 per share, with total revenue expected to be between $2.85 billion and $2.86 billion [3]