{"id":38117,"date":"2026-02-27T04:23:15","date_gmt":"2026-02-27T04:23:15","guid":{"rendered":"https:\/\/diyhaven858.wasmer.app\/index.php\/okta-stock-is-down-20-in-2026-can-it-survive-the-software-apocalypse\/"},"modified":"2026-02-27T04:23:15","modified_gmt":"2026-02-27T04:23:15","slug":"okta-stock-is-down-20-in-2026-can-it-survive-the-software-apocalypse","status":"publish","type":"post","link":"https:\/\/diyhaven858.wasmer.app\/index.php\/okta-stock-is-down-20-in-2026-can-it-survive-the-software-apocalypse\/","title":{"rendered":"Okta Stock Is Down 20% in 2026. Can It Survive the Software Apocalypse?"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div xmlns:default=\"http:\/\/www.w3.org\/2000\/svg\" data-testid=\"article-body\">\n<div class=\"bodyItems-wrapper\">\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->Identity and access management company Okta (OKTA) dropped 6.4% intraday on Feb. 23, after a 9.2% drop on Feb. 20, after artificial intelligence (AI) firm Anthropic released a new security tool for its Claude model. The AI lab stated that the service can analyze software code for security flaws and recommend fixes.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->Software companies have come under fire, with fears of a \u201csoftware apocalypse,\u201d as AI threatens to replace their usage. With the stock down 20% this year, can Okta emerge triumphant from this storm?<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->Headquartered in San Francisco, California, Okta operates as a leading identity and access management company. It delivers a cloud-based platform that securely connects people to technology through core services like single sign-on, multi-factor authentication, and user lifecycle management.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->As a SaaS provider, Okta serves both workforce and customer identity needs, acting as a neutral hub that integrates with thousands of applications to enable seamless access control across cloud, on-premises, and hybrid environments. From its global base, the company supports operations worldwide, enabling secure digital experiences for organizations everywhere. The company has a market capitalization of $12.6 billion.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->Growth deceleration has raised investor concerns, with slower subscription expansion and subdued current remaining performance obligation (cRPO) guidance. Over the past 52 weeks, Okta\u2019s stock has declined by 19.66%, while it is down 16.99% year-to-date (YTD). It reached a 52-week low of $68.77 on Feb. 23 on AI fears, but is up 4.73% from that level.<!-- HTML_TAG_END --><\/p>\n<figure data-testid=\"article-figure-image\" class=\"yf-750ceo\">\n<div class=\"image-container yf-lglytj\" style=\"--max-height: 498px;\">\n<div class=\"image-wrapper yf-lglytj\" style=\"--aspect-ratio: 752 \/ 498; --img-max-width: 752px;\"><img fetchpriority=\"high\" decoding=\"async\" src=\"https:\/\/s.yimg.com\/ny\/api\/res\/1.2\/bbjt8C0dDbzc26tuRCvqJQ--\/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MDtoPTYzNg--\/https:\/\/media.zenfs.com\/en\/barchart_com_477\/74c7a15cb28e6c565ad144fd77ad2ef7\" alt=\"www.barchart.com\" loading=\"eager\" height=\"498\" width=\"752\" class=\"yf-lglytj  loaded\"\/><\/div>\n<\/div><figcaption class=\"yf-750ceo\"><!-- HTML_TAG_START -->www.barchart.com<!-- HTML_TAG_END -->  <\/figcaption><\/figure>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->On a forward-adjusted basis, Okta\u2019s price-to-earnings ratio of 20.67x is lower than the industry average of 22.41x. Its 14-day RSI stands at 31.77, indicating that it is approaching oversold territory.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->Okta reported better-than-expected third-quarter results for fiscal 2026 (quarter ended Oct. 31, 2025). The company\u2019s subscription revenue increased 11.2% year-over-year (YOY) to $724 million, leading to a 11.6% increase in total revenue to $742 million. This figure was also higher than the $730 million that Wall Street analysts had expected.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->By the third quarter, customers with an annual contract value exceeding $100,000 had exceeded 5,000. Its cRPO grew by 13% YOY, which is important because it is highly correlated with future subscription revenue. However, Okta\u2019s trailing-12-month dollar-based net retention rate is declining, although it remains at 106% as of Q3.<!-- HTML_TAG_END --><\/p>\n<\/p><\/div>\n<p>   <button class=\"secondary-btn fin-size-large readmore-button    rounded   yf-r7dg9i\" data-ylk=\"elm:readmore;itc:1;sec:content-canvas;slk:Story%20continues\" data-yga=\"{&quot;yLinkElement&quot;:&quot;readmore&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yLinkText&quot;:&quot;Story continues&quot;}\" aria-label=\"Story continues\" title=\"Story continues\"> <span>Story continues<\/span> <\/button> <\/p>\n<div class=\"read-more-wrapper\" style=\"display: none\" data-testid=\"read-more\">\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->The double-digit top line growth has also translated into bottom line gains. Okta\u2019s non-GAAP operating margin grew from 21% to 24% annually. Its non-GAAP EPS was $0.82, up 22.4% YOY and above the $0.75 analysts had expected.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->Wall Street analysts are optimistic about Okta\u2019s future earnings. They expect the company\u2019s EPS to climb 16% YOY to $0.29 in the fourth quarter of fiscal 2026 (to be reported on Mar. 4, after the market closes). For fiscal 2026, EPS is projected to surge 210% annually to $1.24, followed by a 16.9% growth to $1.45 in fiscal 2027.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->Okta has recently received reaffirmations of ratings, as well as price target changes. This month, analysts at Mizuho maintained an \u201cOutperform\u201d rating on the stock but lowered the price target from $110 to $100, citing the multiple compression in the sector. The analysts see some \u201cuncommonly attractive investments in software\u201d for investors willing to be patient, despite the bearish sentiments surrounding the sector.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->On the same day, Truist analyst Junaid Siddiqui kept a \u201cBuy\u201d rating on Okta but lowered the firm\u2019s price target from $125 to $115, as part of Truist\u2019s broader view on the software sector. There is likely to be a demarcation between the companies that will survive the AI storm and those at risk. Sharing the same sentiment, Keybanc analyst Eric Heath maintained an \u201cOverweight\u201d rating while lowering the price target from $130 to $115.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->A little bit more on the bullish side, last month, analysts at Stephens upgraded the stock from \u201cEqual Weight\u201d to \u201cOverweight,\u201d while raising the price target from $97 to $120. The research firm highlighted a favorable growth outlook for identity security, fueled by enduring trends such as AI and cloud adoption, which are elevating identity as a key strategic focus and signaling a greater confidence in Okta&#8217;s growth inflection.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->Okta is still favored on Wall Street, with analysts awarding it a consensus \u201cModerate Buy\u201d rating overall. Of the 41 analysts rating the stock, a majority of 25 analysts have rated it a \u201cStrong Buy,\u201d two analysts suggest a \u201cModerate Buy,\u201d while 12 analysts are playing it safe with a \u201cHold\u201d rating, one analyst gave a \u201cModerate Sell,\u201d and one analyst suggests \u201cStrong Sell.\u201d The\u00a0consensus price target of $111.65 represents 55.3% upside from current levels. Moreover, the Street-high price target of $145 indicates a 102.6% upside. <!-- HTML_TAG_END --><\/p>\n<figure data-testid=\"article-figure-image\" class=\"yf-750ceo\">\n<div class=\"image-container yf-lglytj loader\" style=\"--max-height: 452px;\">\n<div class=\"image-wrapper yf-lglytj\" style=\"--aspect-ratio: 960 \/ 452; --img-max-width: 960px;\"><img decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/ywAAAAAAQABAAACAUwAOw==\" alt=\"www.barchart.com\" loading=\"lazy\" height=\"452\" width=\"960\" class=\"yf-lglytj loader\"\/><\/div>\n<\/div><figcaption class=\"yf-750ceo\"><!-- HTML_TAG_START -->www.barchart.com<!-- HTML_TAG_END -->  <\/figcaption><\/figure>\n<figure data-testid=\"article-figure-image\" class=\"yf-750ceo\">\n<div class=\"image-container yf-lglytj loader\" style=\"--max-height: 408px;\">\n<div class=\"image-wrapper yf-lglytj\" style=\"--aspect-ratio: 960 \/ 408; --img-max-width: 960px;\"><img decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/ywAAAAAAQABAAACAUwAOw==\" alt=\"www.barchart.com\" loading=\"lazy\" height=\"408\" width=\"960\" class=\"yf-lglytj loader\"\/><\/div>\n<\/div><figcaption class=\"yf-750ceo\"><!-- HTML_TAG_START -->www.barchart.com<!-- HTML_TAG_END -->  <\/figcaption><\/figure>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START -->While the dip in software names has concerned the market, it\u2019s unlikely that software usage will disappear. In fact, about the threat that Anthropic\u2019s new tool poses to cybersecurity firms, Bank of America analysts believe that AI can enhance efficiency in targeted workflows, such as code scanning. But it currently lacks the necessary visibility, control, and reliability to supplant comprehensive end-to-end security platforms. Although there\u2019s an expectation of a slight slowdown, Okta\u2019s fundamentals do not necessarily show signs of immediate alarm. Therefore, the stock might still be worth watching.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1fy9kyt\"><!-- HTML_TAG_START --><i> On the date of publication, Anushka Dutta did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally\u00a0published on Barchart.com <\/i><!-- HTML_TAG_END --><\/p>\n<\/p><\/div>\n<\/p><\/div>\n<p><br \/>\n<br \/><a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Identity and access management company Okta (OKTA) dropped 6.4% intraday on Feb. 23, after a 9.2% drop on Feb. 20, after artificial intelligence (AI) firm Anthropic released a new security tool for its Claude model. The AI lab stated that the service can analyze software code for security flaws and recommend fixes. Software companies have [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":38118,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_daextam_enable_autolinks":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[10],"tags":[2449,4113,4112,2155,507],"class_list":["post-38117","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-news","tag-anthropic","tag-identity-and-access-management","tag-okta","tag-subscription","tag-wall-street-analysts"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/diyhaven858.wasmer.app\/wp-content\/uploads\/2026\/02\/7459f8f135569884694c9e7ba0dc00e7.jpeg","jetpack_sharing_enabled":true,"jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/diyhaven858.wasmer.app\/index.php\/wp-json\/wp\/v2\/posts\/38117","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/diyhaven858.wasmer.app\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/diyhaven858.wasmer.app\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/diyhaven858.wasmer.app\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/diyhaven858.wasmer.app\/index.php\/wp-json\/wp\/v2\/comments?post=38117"}],"version-history":[{"count":0,"href":"https:\/\/diyhaven858.wasmer.app\/index.php\/wp-json\/wp\/v2\/posts\/38117\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/diyhaven858.wasmer.app\/index.php\/wp-json\/wp\/v2\/media\/38118"}],"wp:attachment":[{"href":"https:\/\/diyhaven858.wasmer.app\/index.php\/wp-json\/wp\/v2\/media?parent=38117"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/diyhaven858.wasmer.app\/index.php\/wp-json\/wp\/v2\/categories?post=38117"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/diyhaven858.wasmer.app\/index.php\/wp-json\/wp\/v2\/tags?post=38117"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}