Okta has provided its fiscal year 2027 subscription revenue guidance, projecting a 10% year-over-year increase, surpassing analyst expectations of 9%. This positive outlook has prompted multiple analysts, including those from J.P. Morgan and Jefferies, to maintain or upgrade their ratings, with J.P. Morgan setting a price target of $103. The company’s strategic pivot to outsource professional services to GSI partners is expected to generate a 1-point revenue headwind but allows Okta to concentrate on enhancing its subscription revenue, which is seen as the core of its business. Additionally, early adoption of Okta’s agentic identity solutions for AI agents could further support subscription growth in the latter half of 2027, cementing a favorable sentiment among analysts.
Okta’s FY27 subscription revenue guidance exceeds expectations, analysts bullish
