Okta shares surged 20% in extended trading Wednesday after the identity software provider topped Wall Street’s fiscal second-quarter expectations, according to CNBC.
The company reported revenue of $728 million, up 11% from a year earlier, while net income came in at $116 million, or 65 cents per share, up from $67 million, or 37 cents per share in the year-ago quarter. The results beat LSEG consensus estimates, though specific analyst forecasts were not disclosed.
AI identity security takes center stage
During the quarter, Okta made its Okta for AI Agents tool generally available, a product designed to manage and secure AI agents. New products accounted for 30% of total bookings, and the company closed dozens of AI-related deals, including a multi-million-dollar agreement with a healthcare company.
CEO Todd McKinnon told CNBC that the agentic AI security opportunity remains “very early,” and recent incidents like the OpenAI Hugging Face hack are only “catalyzing interest.” He framed identity as the next major cybersecurity battleground.
“Network is the biggest cyber category now, but if you look out five or 10 years, with millions of agents running around, it’s definitely going to be identity,” McKinnon said. “Not trying to spread ourselves too thinly across all these other categories, I think it’s really going to pay off.”
Acquisition strategy
Okta closed its acquisition of threat detection startup Permiso Security during the quarter, a deal valued at roughly $200 million. McKinnon said the company will continue pursuing smaller, complementary acquisitions rather than large legacy deals.
“You’ll see us do more of these tuck-in things,” he said. “We’re not going to buy some big legacy company just to have more revenue.”
The broader cybersecurity sector has seen a wave of M&A as companies race to address AI-driven threats, pushing shares of rivals like CrowdStrike and Palo Alto Networks to record highs. Okta’s stock has gained 55% this year.
Guidance raised
Okta’s remaining performance obligations, a key measure of subscription backlog, rose 17% year over year to $4.86 billion, beating the $4.70 billion analyst estimate from StreetAccount. Current RPO, which represents backlog expected to be recognized in the next 12 months, rose 14% to $2.59 billion.
The company lifted its full-year revenue outlook to a range of $3.22 billion to $3.23 billion, up from the roughly $3.19 billion to $3.21 billion provided last quarter and above the $3.2 billion LSEG estimate. Adjusted earnings are now expected between $3.90 and $3.94 per share, versus the $3.84 consensus.
Source: www.cnbc.com — https://www.cnbc.com/2026/08/26/okta-okta-earnings-q2-2027.html
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