
Takeaways by Saasverse AI
- $728M Revenue (+13% YoY) | $0.91 EPS (Beat by $0.07) | Subscription Backlog Growth
- AI-Driven Cybersecurity Demand: Strength in identity and access management solutions, with robust performance in Auth0 and public sector deals.
- Stock Reaction & Guidance: Shares rose 4% post-earnings; FY2026 revenue guidance raised to $2.88–$2.89B, EPS outlook increased to $3.33–$3.38.
Okta, a leader in identity and access management, delivered a standout performance for the second quarter of its fiscal year 2026, exceeding Wall Street expectations on both revenue and earnings. The company reported $728 million in revenue, marking a 13% year-over-year increase and surpassing the consensus estimate of $711.2 million. Adjusted earnings per share (EPS) came in at $0.91, well above analysts’ projections of $0.84. Following this strong report, Okta’s stock climbed 4% in after-hours trading.
The quarter’s success was driven by Okta’s robust subscription business, with backlog growth highlighting sustained demand for its identity security solutions. In a market increasingly focused on cybersecurity due to the rise of sophisticated, AI-driven threats, enterprises and government agencies alike are prioritizing investments in identity management. Notably, five of Okta’s top ten deals this quarter stemmed from the public sector, including a major agreement with a U.S. Department of Defense agency. This underscores Okta’s ability to secure high-value contracts across a wide spectrum of clients.
Okta’s leadership team remains optimistic about the future, with CEO Todd McKinnon emphasizing the growing importance of identity security in the AI age. McKinnon highlighted strong adoption of the company’s unified identity platform, which continues to gain traction among large enterprises, government agencies, and other key customers. Auth0, Okta’s developer-centric identity solution, also demonstrated solid performance, contributing to overall growth.
Looking ahead, Okta raised its full-year fiscal 2026 revenue guidance to a range of $2.88 billion to $2.89 billion, up from its previous forecast of $2.85 billion to $2.86 billion. Adjusted EPS guidance was also increased to $3.33–$3.38, compared to the prior range of $3.23–$3.28. These upward revisions reflect the company’s confidence in its ability to capitalize on the sustained demand for identity security solutions.
“ We sees several strategic advantages for Okta moving forward. The company’s strong positioning in the cloud-native identity space, coupled with its focus on innovation and customer retention, solidifies its leadership in the cybersecurity market. However, the competitive landscape remains dynamic, with established players and emerging startups vying for market share. Okta’s ability to maintain its momentum will depend on continued execution in expanding its product portfolio and leveraging AI-driven capabilities to address evolving security challenges. ” Saasverse Analyst comments.
Saasverse Insights
In summary, Okta’s Q2 results and revised guidance underscore its resilience and growth potential in a rapidly evolving cybersecurity landscape. With enterprises and governments ramping up investment in identity security, Okta is well-positioned to benefit from these trends and deliver sustained value to shareholders.