Why D.A. Davidson Thinks Okta (OKTA)'s Growth Outlook Looks More Stable Than Expected

Okta, Inc. (NASDAQ:OKTA) is one of the cheap AI stocks to buy in 2026.

On March 5, 2026, D.A. Davidson reiterated a Buy rating on Okta and set a $110 price target after the company’s fourth-quarter results and fiscal 2027 guidance. The firm said the quarter and outlook were mostly in line with expectations, but pointed to better-than-expected current remaining performance obligations (cRPO) growth of 12% year over year versus 9% consensus.

It also highlighted fiscal 2027 subscription revenue guidance of about 10% year-over-year growth, compared with 9% consensus, and said the outlook implies more stable subscription growth through the year than some prior initial guides. D.A. Davidson added that it still views management guidance as conservative and sees a higher likelihood of cRPO growth reacceleration in the second half of fiscal 2027, citing improved sales productivity, added sales capacity, product mix, larger deal sizes, and early AI agent contribution.

Okta reported on March 4, 2026, that fourth-quarter revenue rose 11% year over year to $761 million, including subscription revenue of $747 million. RPO reached $4.827 billion, up 15%, while cRPO was $2.513 billion, up 12%. The company also reported operating cash flow of $258 million and free cash flow of $252 million for the quarter.

Okta, Inc. (NASDAQ:OKTA) is an AI-Powered identity and access management company focused on workforce and customer identity solutions, including authentication and authorization tools for enterprises and developers.

While we acknowledge the potential of OKTA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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