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Get filing alertsOkta reports 11% revenue growth, initiates $248M stock buyback in Q1 FY2027
Filed May 28, 2026 · Period ending May 28, 2026 · ~1 min read
Key Changes
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Okta repurchased $248M of common stock in Q1, marking its first material capital return to shareholders while maintaining 35% free cash flow margin ($271M).
Exhibit 99.1 view on EDGAR → -
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Q1 revenue grew 11% to $765M with subscription revenue of $750M; current remaining performance obligations (cRPO) increased 12% to $2.5B, indicating healthy future revenue visibility.
Exhibit 99.1 view on EDGAR → -
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Full-year FY2027 guidance calls for $3.19B-$3.21B revenue (9-10% growth) and $855M-$885M free cash flow; accelerating shift of professional services to partners will reduce total revenue growth by ~1 percentage point.
Exhibit 99.1 view on EDGAR → -
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Okta reduced its long-term non-GAAP tax rate from 26% to 21% due to the One Big Beautiful Bill Act, which will increase reported non-GAAP earnings per share going forward.
Exhibit 99.1 view on EDGAR → -
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CEO highlighted AI agents as a new growth driver, positioning Okta to secure AI, machine, and human identities as organizations deploy AI agents as a new workforce.
Exhibit 99.1 view on EDGAR →
Summary
Okta reported solid Q1 fiscal 2027 results with 11% revenue growth to $765 million and initiated its first material stock repurchase program, returning $248 million to shareholders. The company generated $271 million in free cash flow (35% margin) while growing its subscription backlog (cRPO) 12% to $2.5 billion, demonstrating healthy demand visibility.
The quarter marks a strategic shift in capital allocation, with Okta now returning cash to investors while maintaining strong operational cash generation. For the full fiscal year, management guided to $3.19-$3.21 billion in revenue (9-10% growth) and $855-$885 million in free cash flow.
The company disclosed it is accelerating the transition of professional services work to partners, which will create a one-percentage-point headwind to total revenue growth but should improve margins and partner leverage. Management also reduced the non-GAAP tax rate from 26% to 21% due to recent tax legislation, which will boost reported earnings per share. CEO Todd McKinnon positioned AI agents as an emerging growth opportunity, framing them as a new category of identities requiring security and governance alongside human users.
Section-by-Section Diff
Event · Exhibit 99.1
Okta reported Q1 FY2027 results with 11% revenue growth, 12% cRPO growth, $271M free cash flow, and initiated a stock repurchase program.
Added in current filing · view on EDGAR →
Total revenue was $765 million, an increase of 11% year-over-year. Subscription revenue was $750 million, an increase of 11% year-over-year. ... cRPO, which represents subscription backlog expected to be recognized over the next 12 months, was $2.499 billion, up 12% compared to the first quarter of fiscal 2026. ... Free cash flow was $271 million, or 35% of total revenue, compared to $238 million, or 35% of total revenue, in the first quarter of fiscal 2026.
Okta delivered Q1 fiscal 2027 results with total revenue of $765 million (up 11% year-over-year) and subscription revenue of $750 million (also up 11%). Current remaining performance obligations (cRPO) grew 12% to $2.499 billion, indicating healthy future revenue visibility. Free cash flow was $271 million, representing 35% of revenue, consistent with the prior year quarter but up $33 million in absolute terms.
Added in current filing · view on EDGAR →
AI agents are rapidly becoming a new workforce inside every organization, creating a wave of identities that must be secured and governed alongside human users
CEO Todd McKinnon highlighted AI agents as a new growth driver, describing them as creating a wave of identities requiring security and governance. The company positions itself to secure AI, machine, and human identities, framing AI agents as an expansion of its addressable market beyond traditional human users.
Event · Item 7.01 — Regulation FD Disclosure
Okta posted supplemental investor materials on its investor website, a routine Regulation FD disclosure with no material business event.
Show 1 minor / wording change
Added in current filing · verify on EDGAR →
On May 28, 2026, the Company posted supplemental investor materials on its investor.okta.com website.
Okta disclosed that it posted supplemental investor materials to its investor relations website. The filing provides no detail on the content of these materials. This is a routine Regulation FD disclosure mechanism companies use to share information with investors.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jun 25, 2026 · How we verify