Okta $OKTA rises 8% as Q1 revenue hits $765M and RPO reaches $4.719B
Original: Okta jumps 8%, tops first-quarter results on agentic AI demand View original →
Okta $OKTA rose 8% after Q1 FY2027 results gave investors a cleaner software-growth setup: 11% revenue growth, 16% RPO growth, and free cash flow above $270M. The company reported total revenue of $765M for the quarter ended April 30, 2026, with subscription revenue of $750M.
Remaining performance obligations reached $4.719B, up 16% from a year earlier. Current RPO, the portion expected to be recognized over the next 12 months, was $2.499B, up 12%. GAAP operating income was $56M, equal to 7% of revenue, compared with $39M and 6% of revenue a year earlier. Non-GAAP operating income was $191M, or 25% of revenue.
Cash conversion was the other number behind the move. Operating cash flow was $277M, or 36% of revenue, and free cash flow was $271M, or 35% of revenue. Cash, cash equivalents, and short-term investments totaled $2.589B at quarter-end.
For Q2 FY2027, Okta guided revenue to $790M-$794M and non-GAAP EPS to $0.95-$0.97. For FY2027, management expects revenue of $3.185B-$3.205B, non-GAAP operating income of $806M-$826M, non-GAAP EPS of $3.79-$3.87, and free cash flow of $855M-$885M.
The market read the report as evidence that identity spending has a clear AI-agent angle without sacrificing cash flow. The next test is whether cRPO growth can stay near the low-double-digit rate while Okta shifts more professional-services work to partners.
Not investment advice. Verify all figures with primary sources before acting.
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