Okta's Backlog Tops $4B on Strong Identity Security Demand
Okta's OKTA Remaining Performance Obligations (RPO) or subscription backlog surged to $4.084 billion in the first quarter of fiscal 2026, marking a 21% year-over-year increase. More importantly, current RPO jumped 14% year over year to $2.23 billion, highlighting the company's strong forward 12-month revenue visibility. This significant backlog growth reflects sustained enterprise demand for OKTA's identity security solutions, as organizations prioritize secure access in increasingly complex IT environments.The company benefits from strong demand for its new products, including Identity Governance, Privileged Access, Device Access, Fine Grained Authorization, Identity Security Posture Management and Identity Threat Protection with Okta AI. Okta's Identity Security Posture Management and Privileged Access solutions are helping enterprises tackle non-human identities that comprise service accounts, shared accounts, machines and tokens.For the second quarter of fiscal 2026, OKTA projects current RPO growth in the range of 10% to 11%. While the guidance reflects a slightly cautious outlook amid ongoing macroeconomic headwinds, it still indicates resilient demand and solid revenue visibility.
As identity and access management becomes a top priority for enterprises, Okta faces stiff competition from seasoned players like CyberArk Software CYBR and Microsoft MSFT.CyberArk leads in Privileged Access Management, offering advanced tools like credential vaulting and threat analytics. With its acquisition of Zilla Security, it's expanding into automated Identity Governance. This move strengthens CyberArk's Identity Security Platform, boosting compliance and efficiency. Microsoft's Entra ID poses a significant challenge by offering a fully integrated Identity and Access Management solution, including Single Sign-On, Multi-Factor Authentication, Conditional Access and Identity Protection.
Shares of Okta have appreciated 27.7% year to date compared with the Zacks Security industry's return of 19.9%.
Image Source: Zacks Investment Research
Okta currently trades at a premium, with a forward Price/Cash Flow ratio of 23.83, higher than the broader Zacks Computer & Technology sector's 20.4X. OKTA has a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for OKTA's 2026 revenues is pegged at $2.86 billion, indicating 9.44% year-over-year growth. The consensus mark for earnings is pegged at $3.28 per share, which increased 2.8% over the past 30 days. The earnings figure suggests 16.73% growth over the figure reported in fiscal 2025.
Image Source: Zacks Investment Research
OKTA stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
CyberArk Software Ltd. (CYBR) : Free Stock Analysis Report
Okta, Inc. (OKTA) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
9 hours ago
- Yahoo
Progress Software: Fiscal Q2 Earnings Snapshot
BURLINGTON, Mass. (AP) — BURLINGTON, Mass. (AP) — Progress Software Corp. (PRGS) on Monday reported fiscal second-quarter profit of $17 million. The Burlington, Massachusetts-based company said it had net income of 39 cents per share. Earnings, adjusted for one-time gains and costs, came to $1.40 per share. The results beat Wall Street expectations. The average estimate of five analysts surveyed by Zacks Investment Research was for earnings of $1.30 per share. The business software maker posted revenue of $237.4 million in the period, which did not meet Street forecasts. Four analysts surveyed by Zacks expected $237.8 million. For the current quarter ending in August, Progress Software expects its per-share earnings to range from $1.28 to $1.34. The company said it expects revenue in the range of $237 million to $243 million for the fiscal third quarter. Progress Software expects full-year earnings in the range of $5.28 to $5.40 per share, with revenue ranging from $962 million to $974 million. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on PRGS at Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
11 hours ago
- Yahoo
This is Why Peoples Financial Services (PFIS) is a Great Dividend Stock
Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus. Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases. Headquartered in Dunmore, Peoples Financial Services (PFIS) is a Finance stock that has seen a price change of -3.09% so far this year. Currently paying a dividend of $0.62 per share, the company has a dividend yield of 4.98%. In comparison, the Banks - Northeast industry's yield is 2.77%, while the S&P 500's yield is 1.58%. Looking at dividend growth, the company's current annualized dividend of $2.47 is up 20.2% from last year. Over the last 5 years, Peoples Financial Services has increased its dividend 4 times on a year-over-year basis for an average annual increase of 9.97%. Any future dividend growth will depend on both earnings growth and the company's payout ratio; a payout ratio is the proportion of a firm's annual earnings per share that it pays out as a dividend. Peoples Financial Services's current payout ratio is 52%. This means it paid out 52% of its trailing 12-month EPS as dividend. Earnings growth looks solid for PFIS for this fiscal year. The Zacks Consensus Estimate for 2025 is $5.97 per share, which represents a year-over-year growth rate of 58.36%. From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. However, not all companies offer a quarterly payout. For instance, it's a rare occurrence when a tech start-up or big growth business offers their shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, PFIS presents a compelling investment opportunity; it's not only an attractive dividend play, but the stock also boasts a strong Zacks Rank of #1 (Strong Buy). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Peoples Financial Services Corp. (PFIS) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
11 hours ago
- Yahoo
Why Prestige Consumer Healthcare (PBH) is a Top Value Stock for the Long-Term
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term. Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks. Based in New York, Prestige Consumer Healthcare Inc. and its subsidiaries develop, manufacture, market, sell and distributes over-the-counter ('OTC') healthcare and household cleaning products in United States, Canada, Australia and certain other international markets. The company provides its products to mass merchandisers as well as drug, food, dollar, convenience, and club stores. Also, Prestige Consumer Healthcare operates through the e-commerce channel. PBH is a Zacks Rank #3 (Hold) stock, with a Value Style Score of B and VGM Score of B. Shares are currently trading at a forward P/E of 17X for the current fiscal year compared to the Medical - Products industry's P/E 19.1X. Additionally, PBH has a PEG Ratio of 2.4 and a Price/Cash Flow ratio of 15.5X. Value investors should also note PBH's Price/Sales ratio of 3.5X. A company's earnings performance is important for value investors as well. For fiscal 2026, one analyst revised their earnings estimate higher in the last 60 days for PBH, while the Zacks Consensus Estimate has increased $0 to $4.76 per share. PBH also holds an average earnings surprise of 2.8%. With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding PBH to their portfolios. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Prestige Consumer Healthcare Inc. (PBH) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
