Okta (OKTA) has announced layoffs affecting 3% of its workforce as part of a restructuring plan. This will see 180 full-time positions eliminated at the company and includes $11 million in restructuring charges that will be realized in the fourth quarter. This covers employee severance and benefits costs that will mostly be paid in Fiscal Q1 2026.
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Okta says these layoffs are part of its restructuring plan to shift focus toward growth. The identity and information company doesn’t provide any further details about what this shift is toward in its filings with the Securities and Exchange Commission (SEC).
Okta Q4 Guidance Update
That same SEC filing also provides investors with an earnings update from Okta. The company reaffirmed its outlook for Q4. This has it expecting adjusted EPS of 73 cents to 74 cents alongside revenue of $667 million to $669 million. For comparison, Wall Street expects Okta to report adjusted EPS of 74 cents on revenue of $668.9 million. The company also said it will release its next earnings report after markets close on March 3, 2025.
Investors appear largely unworried about the Okta layoffs or its earnings update. The stock has only slightly slipped today, down 0.03%, compared to an 18.29% increase year-to-date. OKTA stock is also up 13.48% over the past 52 weeks. Trading remains muted with over 728,000 units traded compared to a three-month daily average of 2.89 million shares.
Is OKTA Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Okta is Moderate Buy based on 13 Buy, 15 Hold, and one Sell ratings over the last three months. With that comes an average price target of $101.96, a high of $125, and a low of $75. This represents a potential 9.39% upside for OKTA stock.
