Why Okta Stock Barreled Higher Tuesday Morning

Core Viewpoint - Okta is set to be added to the S&P MidCap 400 index, which is expected to increase demand for its shares and positively impact its stock price in the short term [2][4]. Group 1: Index Inclusion - Okta will replace Berry Global Group in the S&P MidCap 400 index starting May 1 [2]. - The addition to the index is generally seen as a positive development, as it increases demand from index funds and institutional investors [4]. Group 2: Financial Performance - For fiscal 2025 fourth-quarter results, Okta reported revenue of $682 million, a 13$0.78, which is a 24% jump [5]. - Management provided guidance for 2026, projecting revenue of approximately $2.855 billion and adjusted EPS of$3.17, both exceeding Wall Street expectations [6]. Group 3: Company Recovery - Following a significant security breach, Okta appears to be on a recovery path, which has restored shareholder confidence [6].