Mizuho Securities increased its price target on Okta Inc. to $165 from $145, maintaining a Neutral rating, after the identity management provider reported second-quarter fiscal 2027 results that exceeded expectations.
Citizens Financial Group similarly raised its price target on Okta shares to $180 from $170, keeping a Market Outperform rating. The upgrades follow Okta’s quarterly performance, which included revenue of $805 million and non-GAAP earnings per share of $1.05, surpassing the consensus estimate of $0.97.
Current remaining performance obligations rose 14% year-over-year, an acceleration of roughly two percentage points and one percentage point above Mizuho’s forecast. The metric also exceeded the Street’s expectation of approximately 11%. Okta’s gross profit margin remained robust at 77%, while its shares have gained 85% over the past six months.
Management raised its outlook for the third fiscal quarter, with current remaining performance obligations guidance roughly one percentage point above consensus. The full-year outlook was also revised higher. Okta attributed the results to stronger demand across its core business and newer AI-focused products, alongside increased bookings, deal expansions, and notable strength among large enterprise customers.
Mizuho noted that while Okta’s performance reflects accelerating momentum, the firm remains unconvinced that the company can sustain re-accelerated growth over the near to medium term—a condition it views as necessary for shares to move significantly higher. The price target increase was instead driven by higher estimate revisions.
