Okta (OKTA) stock dropped by 12% on Wednesday in premarket trading after the tech company reported its first-quarter earnings the day before.
Despite beating Q1 earnings and revenue estimates, the company reiterated its full-year revenue outlook,factoring in a potential risk related to the uncertain economic environment.
CEO, Todd McKinnon said: “Okta had a solid start to FY26 highlighted by record operating profit and another quarter of robust free cash flow.”
“The world’s biggest organizations continue to turn to Okta to solve identity security across their workforces, customers, and AI use cases.”
McKinnon explained that they would continue a “prudent approach to forward guidance… factoring in potential risks related to the uncertain economic environment for the remainder of FY26.”
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