How much did Okta repurchase in the first half of fiscal 2027?

Okta repurchased $372 million in common stock during the six months ended July 31, 2026, according to the cash flows from financing activities. The company did not disclose the number of shares repurchased or the average price paid per share in this filing.

Did Okta authorize a new buyback program or expand an existing one?

This filing does not disclose a board authorization for a new or expanded buyback program. The company references an existing 'stock repurchase program' in its guidance but does not specify the authorization date, amount, or remaining authority in the earnings release.

How is Okta funding the share repurchases?

Okta is funding repurchases from operating cash flow. The company generated $511 million in operating cash flow and $498 million in free cash flow during the first six months of fiscal 2027, indicating the $372 million repurchase was covered by normal business operations. The company noted that the repurchase program will reduce interest income by approximately one percentage point due to lower cash reserves.

What execution mechanism does Okta use for buybacks?

The filing does not specify the execution mechanism—whether the repurchases occur through open-market Rule 10b-18 purchases, accelerated share repurchase agreements, or other means. The cash outflow is simply recorded in financing activities without additional detail on the buyback structure.

Why is Okta buying back stock now?

Okta does not explicitly state the rationale for the buyback in this earnings release. However, the company is generating strong free cash flow (28% margin in Q2) and recently settled $350 million of convertible debt, suggesting the buyback reflects capital deployment after debt reduction and strong operational performance.

Does this buyback affect Okta's earnings per share?

Yes, the $372 million repurchase reduces the share count outstanding, which mechanically supports diluted EPS by spreading earnings over fewer shares. Okta's guidance assumes approximately 184 million diluted weighted-average shares for fiscal 2027, down from the 185–186 million shares in prior periods, reflecting the cumulative impact of repurchases and other share movements.

OKTA 8-K Filed 2026-08-26 Execution disclosure

Okta repurchased $372M in stock during first half of fiscal 2027

Company cites stock repurchase program in free cash flow guidance; $372M spent in H1 FY27

MechanismNot specified

What the filing says

Okta, Inc. executed share repurchases totaling $372 million during the first six months of fiscal 2027 ended July 31, 2026, according to its earnings release and cash flow statement filed as Exhibit 99.1 to the August 26, 2026 8-K. The repurchases appear to be ongoing, with the company noting in its forward-looking guidance that "the stock repurchase program" is expected to have an impact on interest income in fiscal 2027 guidance.

The $372 million in repurchases was reflected in the company's cash flow from financing activities for the six-month period. In the second quarter alone, Okta generated operating cash flow of $234 million and free cash flow of $227 million, suggesting strong cash generation capacity underlying the buyback activity.

In its full-year fiscal 2027 guidance, Okta disclosed that its free cash flow guidance of $910 million to $930 million "is reflected an approximately one percentage point impact related to lower interest income due to the combined impact from the stock repurchase program and our settlement of the 2026 Notes in cash." The company did not specify an authorization amount, authorization date, or remaining authorization balance in the filing.

Reflected in the free cash flow guidance is an approximately one percentage point impact related to lower interest income due to the combined impact from the stock repurchase program and our settlement of the 2026 Notes in cash. — Okta, Inc. 8-K filing · View on SEC EDGAR →

What this means

Okta's $372 million in first-half repurchases signal management confidence in the company's valuation amid strong operating cash generation. The buyback reduces share count, a mechanical support to diluted earnings per share, though the filing does not disclose the average price paid or total shares retired. The company's acknowledgment that the buyback program will reduce interest income by approximately one percentage point in full-year guidance suggests the repurchases are being funded from cash reserves, reducing net cash and thus interest-bearing assets. At a market cap context, the buyback activity is modest relative to Okta's scale but reflects a capital allocation shift toward returning cash after the $350 million settlement of convertible notes.

Frequently asked questions

How much did Okta repurchase in the first half of fiscal 2027?: Okta repurchased $372 million in common stock during the six months ended July 31, 2026, according to the cash flows from financing activities. The company did not disclose the number of shares repurchased or the average price paid per share in this filing.
Did Okta authorize a new buyback program or expand an existing one?: This filing does not disclose a board authorization for a new or expanded buyback program. The company references an existing 'stock repurchase program' in its guidance but does not specify the authorization date, amount, or remaining authority in the earnings release.
How is Okta funding the share repurchases?: Okta is funding repurchases from operating cash flow. The company generated $511 million in operating cash flow and $498 million in free cash flow during the first six months of fiscal 2027, indicating the $372 million repurchase was covered by normal business operations. The company noted that the repurchase program will reduce interest income by approximately one percentage point due to lower cash reserves.
What execution mechanism does Okta use for buybacks?: The filing does not specify the execution mechanism—whether the repurchases occur through open-market Rule 10b-18 purchases, accelerated share repurchase agreements, or other means. The cash outflow is simply recorded in financing activities without additional detail on the buyback structure.
Why is Okta buying back stock now?: Okta does not explicitly state the rationale for the buyback in this earnings release. However, the company is generating strong free cash flow (28% margin in Q2) and recently settled $350 million of convertible debt, suggesting the buyback reflects capital deployment after debt reduction and strong operational performance.
Does this buyback affect Okta's earnings per share?: Yes, the $372 million repurchase reduces the share count outstanding, which mechanically supports diluted EPS by spreading earnings over fewer shares. Okta's guidance assumes approximately 184 million diluted weighted-average shares for fiscal 2027, down from the 185–186 million shares in prior periods, reflecting the cumulative impact of repurchases and other share movements.

execution SaaS cloud-infrastructure cash-flow-funded ongoing-program

Source. This editorial summary is based on the SEC filing linked above. BuybackStocks aggregates and editorializes publicly available SEC EDGAR filings. Not investment advice. Past authorization announcements do not guarantee future repurchase activity or share price performance. See our full disclosures policy.