OKTA Stock: BUY Call - 25% Margin + 35% FCF Q1 FY2027

OKTA Stock: BUY Call - 25% Margin + 35% FCF Q1 FY2027 Okta delivered a clean beat: total revenue $765M (+11% YoY), non-GAAP EPS $0.91 vs $0.85 Street (+7%), with a 25% non-GAAP operating margin and a 35% free cash flow margin. Current RPO grew 12% YoY to $2.50B, GAAP EPS turned positive at $0.42, and buybacks pushed diluted share count lower year over year. The full-year FY27 guide was reiterated at 9-10% growth, keeping the after-hours move to about +3%. VERDICT: BUY (Conviction 4/5 STRONG) - Buy here / add below $92 | Hard stop $78 | Avoid above $135 - Current price $94.72 | AH print ~$97.81 KEY METRICS Q1 FY2027: - Total Revenue: $765M (+11.2% YoY, +1.8% beat) - Subscription Revenue: $750M (+11% YoY) - Non-GAAP EPS: $0.91 vs $0.85 Street | GAAP EPS: $0.42 - Non-GAAP Gross Margin: 77.8% - Non-GAAP Operating Margin: 25% - Free Cash Flow Margin: 35% - Current RPO: $2.50B (+12% YoY) | RPO: $4.72B (+16%) - Customers >$100K ACV: ~4,990 (over 80% of total contract value) - Cash & ST investments: $2.59B | Net cash: $2.18B GUIDANCE (reiterated): - Q2 FY27 Revenue: $790-794M | Non-GAAP EPS: $0.95-0.97 - FY27 Revenue: $3.185-3.205B (9-10% growth) - FY27 Non-GAAP Operating Margin: 25-26% | FCF Margin: 27-28% CEO Todd McKinnon: "AI agents are rapidly becoming a new workforce inside organizations, creating identities that must be secured and governed alongside human users." Charged Alpha is more bullish than consensus; we see the FCF compounding plus the AI-agent identity TAM as underpriced at 24x forward earnings. Not Financial Advice - Informational Only