06:43 AM EDT, 05/28/2025 (MT Newswires) -- Okta ( OKTA ) recorded stronger-than-expected fiscal first-quarter results, while the cloud-based access management platform company reiterated its full-year revenue outlook and flagged potential risks related to an uncertain economic environment.

The company continues to project revenue to come in between $2.85 billion and $2.86 billion for fiscal 2026, representing annual growth of 9% to 10%, it said late Tuesday. The current consensus on FactSet is for $2.86 billion.

"We continue to take a prudent approach to forward guidance that factors in our go-to-market specialization that was rolled out in (the first quarter) of (fiscal) 2026," Chief Financial Officer Brett Tighe said during an earnings call, according to a FactSet transcript. "Additionally, we're now factoring in potential risks related to the uncertain economic environment for the remainder of (fiscal) 2026."

Shares of the company slid 13% in Wednesday's most recent premarket activity.

Investor disappointment with the guidance likely prompted the stock to fall by double digits in the after-hours trading, Truist Securities said in a client note. Consumer sentiment deteriorated, and the company is incorporating incremental conservatism related to macroeconomic uncertainties, according to the brokerage.

Okta ( OKTA ) raised its per-share adjusted earnings forecast for the ongoing fiscal year to a range of $3.23 to $3.28 from previous expectations of $3.15 to $3.20. The Street is looking for non-GAAP EPS of $3.25.

The firm reported adjusted EPS of $0.86 for the quarter ended April, up from $0.65 the year before, ahead of the average analyst estimate of $0.77. Revenue advanced 12% to $688 million, topping the Street's view for $680.3 million. Subscription revenue inclined to $673 million from $603 million in the prior-year quarter.

The company also saw encouraging early results of its realigned go-to-market team, Tighe said on the call. "We were also pleased to see pipeline strengthening throughout March and April," according to Tighe.

Remaining performance obligations, or RPO, jumped 21% to $4.08 billion while current RPO climbed 14% to $2.23 billion, the company said.

For the ongoing quarter, Okta ( OKTA ) anticipates adjusted EPS of $0.83 to $0.84 on revenue of $710 million to $712 million. The Street is looking for non-GAAP EPS of $0.83 and sales of $710.7 million. Current RPO is pegged at $2.2 billion to $2.21 billion, reflecting a yearly gain of 10% to 11%.

"While we anticipate some near-term uncertainty in our federal business, we remain highly confident in the long-term public sector opportunity," Tighe told analysts.