📊 AI Stock Rating — Summary

For the quarter ending July 31, 2025, Okta reported revenue of $728 million with a net income of $67 million, translating to an EPS of $0.38. The company's free cash flow reached $162 million, indicating strong cash generation capabilities. On a year-over-year basis, revenue showed significant growth, highlighting robust demand. Okta maintains a sturdy balance sheet with $9.55 billion in assets against $2.8 billion in liabilities, resulting in a net debt position of only $64 million, signifying strong financial health and low leverage. Despite no dividend payouts or share buybacks in the recent quarter, the company's cash flows are solid, supporting its operations and potential future investments. Analyst price targets range significantly, with a high of $135, suggesting potential for upside from its current valuation. This quarter showcases Okta's successful growth trajectory and financial resilience, though shareholder returns are particularly reliant on market appreciation rather than direct capital returns.

AI Score Breakdown

Revenue Growth — Score: 9/10

Revenue growth remains robust with $728 million reported. Okta continues to benefit from strong subscription services demand, its growth rate indicating resilience amidst competitive sector dynamics.

Profitability — Score: 8/10

With a net income of $67 million and EPS of $0.38, Okta's profitability is improving. The positive margin development signals efficiency and profitability scaling in line with revenue.

Cash Flow Quality — Score: 8/10

Okta's free cash flow of $162 million showcases liquidity strength, despite no shareholder buybacks or dividends. The consistent cash flow generation supports operational stability.

Leverage & Balance Sheet — Score: 9/10

The company maintains a strong balance sheet with low net debt of $64 million. High total equity and substantial cash reserves provide financial flexibility and resilience.

Shareholder Returns — Score: 5/10

Without dividends or buybacks and lacking stock price performance data here, shareholder returns are currently dependent on capital appreciation and strategic growth, possibly subject to market volatility.

Analyst Sentiment & Valuation — Score: 7/10

Analyst targets suggest potential upside, with a consensus price target of $119.3. While the valuation remains contingent on market expectations, investor sentiment leans towards future growth possibilities.

⚠ AI-generated — informational only, not financial advice.