OKTANEUTRAL

OKTA Gross Margin Analysis

77.8%

Higher than 74% of Technology sector peers

Updated 299h ago·SEC filings & market data

Key Takeaway

OKTA's gross margin of 77.8% means that after direct costs of delivering its software and services, the company keeps 77.8 cents of every dollar in revenue to cover other expenses and profit.

Sector Performance

74th percentile

OKTA

77.8%

Sector Median

66.3%

Sector Avg

62.2%

Prior Period

77.9%(May 2026)

→ Stable

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Deep Analysis

OKTA's gross margin of 77.8% means that after direct costs of delivering its software and services, the company keeps 77.8 cents of every dollar in revenue to cover other expenses and profit.

That level is above the technology sector median of 65.9%, putting OKTA in the 74th percentile among sector peers. The trend cannot be assessed because the year-over-year change, quarter-over-quarter change, and trailing eight-quarter history are all N/A, so this is a single snapshot with no direction. With a high margin but no trend data, the investment implication is neutral: the strong profitability level offers some protection, but the absence of a trajectory prevents concluding whether the advantage is growing or fading. This metric supports the overall NEUTRAL verdict because a high gross margin alone does not confirm a positive outlook without evidence of momentum.

Frequently Asked Questions

What does the Gross Margin tell investors about OKTA?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does OKTA's Gross Margin compare to its sector?

OKTA's Gross Margin of 77.8% compares to a Technology sector median of 66.3%, placing it in the 74th percentile.

Who are OKTA's closest peers by Gross Margin?

The closest Technology peers by Gross Margin include: ADI (67.3%), MDB (72.2%), NVDA (74.9%), CRWD (75.3%), ESTC (75.4%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.