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
20 hours ago
- Yahoo
What Can Investors Expect from Q2 Earnings?
The expectation is for Q2 earnings to increase by +5% from the same period last year on +3.9% higher revenues. This will be a material deceleration from the growth trend of recent quarters. In the unlikely event that actual Q2 earnings growth for the S&P 500 index turns out to be +5% as currently expected, this will be the lowest earnings growth pace for the index since the +4.3% growth rate in 2023 Q3. We have been regularly flagging in recent weeks that 2025 Q2 earnings estimates have been steadily coming down, as you can see in the chart below. Image Source: Zacks Investment Research The magnitude of cuts to 2025 Q2 estimates since the start of the period is larger and more widespread than what we have become accustomed to seeing in the post-COVID period. Since the start of April, Q2 estimates have declined for 14 of the 16 Zacks sectors (Aerospace and Utilities are the only sectors whose estimates have gone up), with the biggest cuts to Conglomerates, Autos, Transportation, Energy, Basic Materials, and Construction sectors. Estimates for the Tech and Finance sectors, the largest earnings contributors to the S&P 500 index, accounting for more than 50% of all index earnings, have also been cut since the quarter got underway. But as we have been pointing out recently, the revisions trend for the Tech sector has notably stabilized in recent weeks, as shown in the chart below. Image Source: Zacks Investment Research We see this same trend at play in annual estimates as well. The chart below shows the Tech sector's evolving earnings expectations for full-year 2025. Image Source: Zacks Investment Research A likely explanation for this stabilization in the revisions trend is the easing in the tariff uncertainty after the more punitive version of the tariff regime was delayed. Analysts started revising their estimates lower in the immediate aftermath of the early April tariff announcements, but appear to have since concluded that those punitive tariff levels are unlikely to get levied, helping stabilize the revisions trend. The chart below shows current Q2 earnings and revenue growth expectations in the context of the preceding four quarters and the coming three quarters. Image Source: Zacks Investment Research The chart below shows the overall earnings picture on a calendar-year basis. Image Source: Zacks Investment Research In terms of S&P 500 index 'EPS', these growth rates approximate to $253.84 for 2025 and $286.87 for 2026. The chart below shows how these calendar year 2025 earnings growth expectations have evolved since the start of Q2. As you can see below, estimates fell sharply at the start of the quarter, which coincided with the tariff announcements, but have notably stabilized over the last four to six weeks. Image Source: Zacks Investment Research The June-quarter reporting cycle will really get going when the big banks come out with their results on July 15th. But we will have officially counted almost two dozen quarterly reports from S&P 500 members by then. All of those reports will be from companies with fiscal quarters ending in May, which we and other research organizations count as part of the June-quarter tally. We have seen such fiscal May-quarter results from 9 S&P 500 members already and are on track to see another 8 index members come out with results this week. The notable companies reporting this week include FedEx FDX, Nike NKE, Micron MU, and others. FedEx shares were down big in response to the March 20th quarterly release when it missed estimates. But the stock has been struggling for the last couple of years, with the onset of uncertainty around international trade adding to muted demand trends in the industrial sector. FedEx has been actively working to reduce its cost base and lower the business's capital intensity. The board's announcement to spin off the LTL business (less-than-truckload business) is part of that repositioning. FedEx is scheduled to report after the market's close on Tuesday, June 24th. The company is expected to earn $5.94 per share on $21.7 billion in revenues, representing year-over-year changes of +9.8% and -1.9%, respectively. Estimates for the period have steadily come down, with the current $5.94 per share estimate down from $5.98 a month back and $6.32 three months ago. FedEx shares have lost roughly a fifth of their value this year, roughly in line with UPS's performance, but materially below the S&P 500 index's +1.2% gain. The stock is down -2.1% over the last three years, while the S&P 500 index has gained +60.3%. Just like FedEx, Nike is another bellwether that has been struggling lately, with the stock down -21.1% this year when the market as a whole is up +1.2%. Expectations for Nike's quarterly release after the market's close on Thursday, June 26th, remain low, with EPS and revenues expected to decline -89.1% and -15.4% from the same period last year, respectively The headwinds facing Nike include perceptions of a stale product line that has been weighing on demand and the resulting inventory build that needs to be rightsized. The inventory overhang is expected to persist for a few more quarters, but the market will eagerly seek incremental information on the reception of new products and updates on the product pipeline. The margin squeeze is primarily a result of clearing stale inventory, but also reflects the new management team's renewed focus on the wholesale business, which had been neglected in recent years. Micron Technology shares have literally been on fire lately, up +46.2% in the year-to-date period, handily outperforming the Zacks Tech sector's +1.5% gain and the S&P 500 index's +1.2% gain. Driving the stock's impressive momentum is Micron's leadership position in the high-bandwidth memory (HBM) space, a mission-critical input for high-performance computing (HPC) and artificial intelligence (AI) applications. The combination of stable demand trends in legacy products like DRAM and continued strength in HBM is expected to result in strong numbers when Micron reports results after the market's close on Wednesday, June 25th. The expectation is that Micron will report $1.57 per share in earnings on $8.81 billion in revenues, representing year-over-year changes of +153.2% and +29.3%, respectively. Estimates for the fiscal May quarter have remained unchanged over the last three months, although they have increased modestly for the August period and for next year as well. As noted earlier, we have already seen fiscal May-quarter results from 9 S&P 500 members, which we count as part of our Q2 tally. Total earnings for these 9 index members that have reported results are up +2.4% from the same period last year on +7.9% revenue gains, with 77.8% of the companies beating EPS estimates and all of them beating revenue estimates. The comparison charts below put the Q2 earnings and revenue growth rates for these index members in a historical context. Image Source: Zacks Investment Research The comparison charts below put the Q2 EPS and revenue beats percentages in a historical context. Image Source: Zacks Investment Research We are not drawing any conclusions from these results, given the small sample size at this stage. But we nevertheless wanted to put these early results in a historical context. For a detailed view of the evolving earnings picture, please check out our weekly Earnings Trends report here >>>> Earnings Estimates Stabilize: A Closer Look 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 NIKE, Inc. (NKE) : Free Stock Analysis Report Micron Technology, Inc. (MU) : Free Stock Analysis Report FedEx Corporation (FDX) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
a day ago
- Yahoo
Snowflake Trades Near 52-Week High: Buy, Sell or Hold the Stock?
Snowflake SNOW shares closed at $212.08 on Wednesday, very close to the 52-week high of $214.83, hit on June 4, 2025. SNOW shares have jumped 37.3% year to date (YTD), outperforming the Zacks Internet - Software industry and Zacks Computer and Technology sector gained 12.8% and 1.5%, respectively. The upside in Snowflake is driven by strong first-quarter fiscal 2026 results, consistent product innovation and robust customer expansion. Revenues increased 25.7% year over year to $1.04 billion, beating the Zacks consensus mark by 3.74%. Snowflake reported non-GAAP earnings of 24 cents per share, surpassing the consensus estimate of 22 cents and rising from 14 cents reported in the year-ago quarter. The company added 451 net new customers during the quarter, reflecting 18.8% year-over-year growth. Image Source: Zacks Investment Research Snowflake shares are trading above the 50-day moving average, indicating a bullish trend. Image Source: Zacks Investment Research Snowflake shares are trading at a premium, as suggested by the Value Score of terms of forward 12-month P/S, SNOW stock is trading at 14.49X compared with the industry's 5.67X. The stock is expensive than competitors like Teradata TDC and MongoDB of Teradata and MongoDB are currently trading at P/S ratios of 1.28X and 6.91X, respectively. Image Source: Zacks Investment Research With shares trading near 52-week high and valuation metrics stretched, the key question is whether SNOW still offers compelling upside at current levels. Let's take a closer look. Snowflake's expanding portfolio has been noteworthy. Products like Generation 2 Warehouses, Adaptive Compute, Openflow and Snowflake Intelligence are helping drive new enterprise on this momentum, in June 2025, Snowflake launched Generation 2 Warehouses with 2.1x faster analytics and Adaptive Compute to enable automatic resource scaling. The company also introduced Openflow, a managed service built on Apache NiFi, to simplify batch and streaming data ingestion into the AI Data Cloud, supporting faster integration for AI and real-time investments in AI and machine learning, including the introduction of Snowflake Intelligence and enhancements to the Marketplace with agentic native apps and AI-ready datasets, continue to gain traction. These capabilities are helping customers accelerate GenAI deployment across business functions and reduce time to insight. Snowflake's platform continues to gain adoption among large enterprises across industries. Companies like JPMorgan Chase, AstraZeneca, Siemens, Samsung Ads and Dentsu are leveraging the AI Data Cloud to unify workloads, improve visibility and drive more personalized customer experiences. As of the first quarter, more than 5,200 customers were actively using Snowflake's AI and ML features also benefits from a robust partner ecosystem that includes Microsoft MSFT, Amazon, ServiceNow and NVIDIA, along with consulting leaders like EY and S&P Global. In partnership with Microsoft, the company continues to enhance data interoperability and simplify AI development. A recently expanded collaboration with Acxiom enables the unification of identity and audience data within the Snowflake Data Cloud, helping brands launch AI-driven marketing campaigns with improved personalization and reach. Microsoft remains a key technology partner for Snowflake as it pushes co-innovation efforts across industries to drive broader GenAI adoption. For the second quarter of fiscal 2026, Snowflake expects product revenues in the range of $1.03-$1.04 billion. The projection range indicates year-over-year growth of 25%. For fiscal 2026, Snowflake projects product revenues to grow 25% year over year to reach $4.32 Zacks Consensus Estimate for second-quarter fiscal 2026 revenues is currently pegged at $1.08 billion, indicating 24.85% year-over-year growth. The consensus mark for earnings is currently pegged at 26 cents per share, unchanged over the past 30 days. This indicates an increase of 44.44% year over year. Snowflake Inc. price-consensus-chart | Snowflake Inc. Quote The Zacks Consensus Estimate for SNOW's fiscal 2026 revenues is pegged at $4.51 billion, indicating year-over-year growth of 24.50%. The consensus mark for earnings is pegged at $1.06 per share, which has decreased nine cents over the past 30 days. This indicates an increase of 27.71% on a year-over-year basis. Snowflake's expanding customer footprint, continued platform innovation and strong ecosystem of partners provide a solid foundation for long-term growth. However, intensifying competition from hyperscale cloud providers like AWS, Azure and Google Cloud continues to be a competitive company also faces increasing pressure from enterprise data cloud and analytics providers such as Teradata and MongoDB, which are enhancing their offerings and capturing market share. In parallel, elevated infrastructure spending, particularly on GPUs to support AI-driven initiatives, is adding to cost pressures. Stretched valuation remains a currently carries a Zacks Rank #3 (Hold), suggesting that it may be wise to wait for a more favorable entry point in the stock. 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 Teradata Corporation (TDC) : Free Stock Analysis Report Snowflake Inc. (SNOW) : Free Stock Analysis Report MongoDB, Inc. (MDB) : 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
a day ago
- Yahoo
Why Banco De Chile (BCH) is a Top Dividend Stock for Your Portfolio
Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments. 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. Banco De Chile (BCH) is headquartered in Santiago, and is in the Finance sector. The stock has seen a price change of 30.2% since the start of the year. Currently paying a dividend of $1.57 per share, the company has a dividend yield of 5.32%. In comparison, the Banks - Foreign industry's yield is 3.36%, while the S&P 500's yield is 1.59%. Looking at dividend growth, the company's current annualized dividend of $1.57 is up 27.1% from last year. In the past five-year period, Banco De Chile has increased its dividend 3 times on a year-over-year basis for an average annual increase of 67.08%. Future dividend growth will depend on earnings growth as well as payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Right now, Banco De Chile's payout ratio is 55%, which means it paid out 55% of its trailing 12-month EPS as dividend. BCH is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2025 is $2.54 per share, which represents a year-over-year growth rate of 5.83%. Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. But, not every company offers 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. That said, they can take comfort from the fact that BCH is not only an attractive dividend play, but is also a compelling investment opportunity with a 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 Banco De Chile (BCH) : 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
