TLDR
- Okta acquires Israeli startup Axiom to boost cloud identity and PAM services.
- Stock trades at $90.91 (-0.49%) ahead of Q2 earnings on Aug. 26, 2025.
- Analysts see a 31.17% average upside, with a $120.68 price target.
- Consensus rating upgraded to “Outperform” by 46 brokerages.
- Canaccord raises target to $120 citing strong demand trends.
On Tuesday, Okta Inc. (NASDAQ: OKTA) confirmed the acquisition of Israeli cybersecurity startup Axiom Security, a move designed to expand its cloud identity and privileged access management (PAM) offerings. Okta stock was trading at $90.91, down 0.49% midday Tuesday, with its Q2 earnings call scheduled for August 26, 2025, at 5 PM EDT. The acquisition is expected to close in September, though financial details were not disclosed.
The integration of Axiom’s cloud-native PAM technology into Okta’s existing identity platform will allow enterprises to manage privileged access for critical systems such as on-premise servers, cloud tools, and Kubernetes environments from a single interface. Okta expects the deal to enhance its development hub in Israel, where Axiom’s team will be integrated.
Okta has signed a definitive agreement to acquire Axiom Security! We’re excited to integrate Axiom Security into Okta Privileged Access, expanding access controls to sensitive resources like databases, Kubernetes, cloud infrastructure, and SaaS platforms.
Learn more about our… pic.twitter.com/WSttSaTKEN
— Okta (@okta) August 26, 2025
Analyst Forecasts Point to Upside
Wall Street analysts remain constructive on Okta following the deal. Forty analysts have issued one-year price targets, with an average target of $120.68, a high forecast of $148, and a low of $75. This implies a potential upside of 31.17% from current levels.
The consensus recommendation from 46 brokerage firms stands at 2.3 on a 1–5 scale, placing the stock in the “Outperform” category. Research firm Canaccord Genuity also upgraded Okta from “Hold” to “Buy,” raising its price target to $120 from $115. The firm cited robust software demand trends and favorable channel checks indicating momentum heading into the company’s earnings release.
GuruFocus estimates the one-year GF Value for Okta at $105.19, representing a 14.34% premium to its current price, based on historical multiples and forward growth expectations.
Stock Performance and Market Sentiment
While Okta’s shares gained around 1% following the Axiom news, mid-morning trading saw a modest 0.03% increase. Retail investor sentiment on Stocktwits shifted to “extremely bullish” as message volume climbed to “high” levels within 24 hours of the announcement.
Year-to-date, Okta has delivered a 15.44% return, outperforming the S&P 500’s 9.6% gain. However, its one-year return stands at -6.98%, underperforming the S&P’s 14.77%. Over a five-year span, Okta remains significantly down, with losses of nearly 59% compared to the S&P’s 85% gain.
Strategic Positioning Ahead of Earnings
The acquisition marks a critical step in Okta’s strategy to differentiate itself in the cybersecurity and identity management space. By strengthening privileged access management capabilities and expanding through AI-driven security, Okta aims to deliver higher-value services to enterprise clients.
With its Q2 2025 earnings release scheduled for August 26, investors will be closely watching how this acquisition complements Okta’s growth narrative. Analyst projections and the upbeat sentiment from institutions suggest that the stock could be well-positioned for a rebound if execution matches expectations.
