Okta Inc (0KB7.L) Q1 2026 Earnings Report

Okta Inc delivered a solid QQ1 2026 quarter with $688.0 million in revenue, marking an 11.5% year-over-year increase and a modest 0.88% quarter-over-quarter uptick. The gross margin stood at about 77.5%, and the company reported an operating income of $39.0 million (operating margin ~5.7%), leading to net income of $62.0 million and basic earnings per share of $0.36. Free cash flow was strong at $240.0 million, supporting a cash position of roughly $500.0 million and a net debt position of $453.0 million when considering cash and short-term investments against total debt. Strategically, the quarter underscores the ongoing monetization of Okta Identity Cloud, including Auth0 capabilities integrated into the platform. Despite a high gross margin, Okta continues to invest heavily in research and development (R&D) at $154.0 million, a reflection of its commitment to product innovation and platform expansion. The balance sheet remains robust with $2.725 billion in cash and short-term investments and a total equity base of $6.567 billion, suggesting ample liquidity to fund growth initiatives and potential selective M&A activity related to identity security and AI-enabled identity services. Given the absence of explicit forward guidance in the supplied materials, the analysis relies on disclosed quarterly metrics and industry context. The market environment for identity and access management remains competitive, with Microsoft Entra and other IDaaS players exerting pricing and feature-based pressure. Okta’s near-term trajectory appears anchored in achieving further margin stabilization and sustained free cash flow, while continuing to broaden cross-sell within its expanding customer base and depth of the identity platform.