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OKTABullishEarningsnews
High materiality8/10

Okta Q1 FY2027 Results Validate Growth, FCF Strength and Outlook

May 28, 2026, 4:04 PM EDT3 sourcesAI-analyzed
Why it may matterVerify against the original reporting

Strong Q1 results with 11% top-line growth, robust FCF generation, and expanded RPO/cRPO indicate durable demand and favorable free-cash-flow dynamics. The shift to a 21% non-GAAP tax rate boosts profitability, while FY27 guidance implies continued growth and healthy margins. Historically, such combinations of revenue growth, backlog expansion, and better tax treatment tend to support multiple expansion in cloud/software names.

AI summary

What happened, with direct paths to the underlying reporting

Okta reported Q1 FY2027 revenue of $765 million (up 11%) with 11% growth in subscription revenue to $750 million. RPO rose 16% to $4.719 billion and cRPO rose 12% to $2.499 billion, underscoring durable ARR. Cash flow remained strong, with $277 million from operations and $271 million free cash flow, and a cash balance of $2.589 billion, while tax-rate changes to 21% bolster the earnings trajectory into FY27.

  • Q1 revenue $765M, up 11%; subscription $750M, up 11%.
  • RPO $4.719B, up 16%; cRPO $2.499B, up 12%.
  • OCF $277M; FCF $271M; cash $2.589B at 4/30/2026.
  • FY27 revenue guidance $3.185-3.205B; EPS $3.79-3.87; FCF $855-885M; tax rate 21%.
  • Q2 revenue guidance $790-794M; cRPO $2.505-2.515B; EPS $0.95-0.97; FCF $155-165M.

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StockNews.AI groups source reporting, classifies the event, and measures subsequent price movement. This is informational research, not investment advice. Prices may be delayed or unavailable.

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