Should You Go For This Blue Chip US Stock-OKTA

Acrobull UK Advisory Services Ltd.

August 13			2025
Name	Ticker	Sector/Industry		Market Cap	Risk Factor
Okta Inc.	OKTA-NASDAQ	Technology		$15.693 Billion	Medium

Okta, Inc. operates as an identity partner in the United States and internationally. The company offers Okta's suite of products and services used to manage and secure identities, such as Single Sign-On that enables users to access applications in the cloud or on-premises from various devices.

Recent Highlights

Business Highlights- The company delivered strong financial performance in the first quarter of fiscal 2026, achieving total revenue of $688 million. This represents a robust 12% year-over-year growth, underscoring the continued demand for the company’s offerings and its strong market position.

Notably, subscription revenue, which remains a core component of the business model, reached $673 million—also reflecting a 12% increase compared to the same period last year. This growth in both total and subscription revenue highlights the company's successful execution of its growth strategy, as well as the sustained value being delivered to its customer base.

First Quarter 2026 Highlights

Total Revenue: The company generated $688 million in total revenue, reflecting a 12% increase compared to the same period last year. Subscription revenue accounted for $673 million, also up 12% year-over-year.

Remaining Performance Obligations (RPO): The total RPO, representing the subscription backlog, grew by 21% year-over-year, reaching $4.084 billion. The current RPO (cRPO), which represents the portion of the backlog expected to be recognized within the next 12 months, was $2.227 billion, reflecting a 14% increase from the first quarter of fiscal 2025.

GAAP Operating Income/Loss: The company reported a GAAP operating income of $39 million, or 6% of total revenue, compared to a GAAP operating loss of $47 million, or (8)% of total revenue, in the first quarter of fiscal 2025.

Non-GAAP Operating Income: Non-GAAP operating income totaled $184 million, or 27% of total revenue, marking an increase from $133 million, or 22% of total revenue, in the first quarter of fiscal 2025.

Stock Observation- Looking ahead, the company’s strong subscription backlog positions it for continued growth and financial stability. The total Remaining Performance Obligations (RPO) surged by 21% year-over-year, reaching $4.084 billion, while the current RPO (cRPO), representing the portion expected to be recognized in the next 12 months, increased by 14% to $2.227 billion. This growth in both total and current RPO highlights the company’s expanding customer base and strong demand for its subscription offerings. With a substantial portion of revenue already secured, the company is well-positioned to deliver sustained growth and remain on track to meet or exceed future revenue targets in the upcoming quarters.

Risk Involved- Financial performance of the company may have an impact on the company stock performance.

Considering all the factors and financials of the company Acrobull UK maintains Buy for the stock.

Disclaimer- Though our research is fundamentally and technically based on Acrobull UK only provides general advice on the stocks and it is imperative for the investors to do the risk assessment for themselves before investing as Acrobull UK would not be liable for any loss or profit arising out through the investment made by the investors on our recommendations.

It is also advisable for the investors to consult with Financial Advisor, Broker or to seek any legal assistance as the research conducted by Acrobull UK is factually based and recommendations are given in accordance with that, but it is imperative to understand that Acrobull UK does not guarantee returns.

Acrobull UK Recommendation Based on Evaluation

Current Market Price	$89.33 USD
Acrobull Recommendation	Buy
Target Price	$99.25 USD
RSI Level	14 Day RSI 38
Total Shares Outstanding	301.51 Million
Shares held by Insiders Shares held by Institutions Risk Factor Stop Loss	0.54% 95.46% Medium 5%