Okta (OKTA) Q4 2026 earnings summary

Executive summary

• Q4 FY26 revenue grew 11% year-over-year to $761 million, with subscription revenue also up 11% to $747 million and full-year revenue rising 12% to $2.919 billion.

• Achieved a strong finish to FY 2026, driven by large enterprise wins, partner engagement, and new product contributions, especially in AI and identity security.

• Remaining performance obligations (RPO) grew 15% year-over-year to $4.827 billion, and current RPO increased 12% to $2.513 billion.

• GAAP net income for Q4 was $63 million, up from $23 million a year ago; full-year GAAP net income was $235 million, up from $28 million.

• The business demonstrated significant operational efficiency and is positioned for profitable growth.

Financial highlights

• Q4 FY26 total revenue: $761 million (+11% YoY); subscription revenue: $747 million (+11% YoY); full-year revenue: $2.919 billion (+12% YoY).

• Q4 GAAP operating income was $46 million (6% margin), up from $8 million (1% margin) last year; Q4 non-GAAP operating income was $202 million (26% margin).

• Full-year non-GAAP operating income was $766 million (26% margin), up from $587 million (22% margin) last year.

• Q4 free cash flow was $252 million (33% margin); full-year free cash flow was $863 million (30% margin).

• Ended Q4 with $2.553 billion in cash, equivalents, and short-term investments.

Outlook and guidance

• FY27 revenue guidance: $3.170–$3.190 billion (+9% YoY); non-GAAP operating margin: 25–26%; free cash flow margin: 27–28%; non-GAAP tax rate: 21%.

• Q1 FY27 revenue expected between $749–$753 million (+9% YoY); non-GAAP operating margin: 23–24%; free cash flow margin: 33–35%.

• Guidance reflects a one-point revenue impact from shifting more professional services to partners and a one-point FCF margin headwind from lower interest income.

• Updated non-GAAP tax rate assumption to 21% from 26% due to federal tax law changes.