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Okta's ( OKTA ) third-quarter revenue forecast exceeds analysts'

estimates

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Five of company's top 10 deals in second quarter come from

the

public sector

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Company reports a 13% increase in second-quarter revenue

By Jaspreet Singh

Aug 26 (Reuters) - Cybersecurity company Okta ( OKTA )

raised annual revenue and profit forecasts on Tuesday, betting

on growing demand for its identity verification tools as

enterprises strengthen defenses against artificial

intelligence-powered attacks.

Shares of the San Francisco, California-based company rose

nearly 7% in extended trading.

Hackers often exploit client identities to steal critical

business data, triggering the demand for tools from firms such

as Okta ( OKTA ) that simplify security deployments, support compliance

needs and enhance user experience.

"Overall, security and securing identity remain a budget

imperative for companies. With the increase of threat actor

activity ... companies are continuing to invest in securing

identity as a core requirement for their businesses," Okta ( OKTA ) Chief

Operating Officer Eric Kelleher told Reuters.

In the second quarter, Kelleher added, "Five of our top ten

deals were in the public sector. Our largest deal for the

quarter was a group within the Department of Defense."

Okta ( OKTA ) automates user access to applications and resources

through products such as single sign-on (SSO) and uses AI to

monitor and respond to risks in real time.

The company raised its fiscal 2026 revenue forecast to a

range of $2.88 billion to $2.89 billion, up from its prior

expectations of $2.85 billion to $2.86 billion.

Okta ( OKTA ) also lifted its annual adjusted profit per share

forecast to $3.33 to $3.38, compared with earlier projections of

$3.23 to $3.28.

For the third quarter, the company expects revenue between

$728 million and $730 million, above analysts' average estimate

of $722.9 million, according to data compiled by LSEG.

The company's forecast for quarterly adjusted earnings per

share of 74 cents to 75 cents aligned with analysts'

expectations of 75 cents.

In the second quarter ended July 31, Okta's ( OKTA ) revenue rose 13%

to $728 million beating estimates of $711.8 million.

The company's quarterly adjusted EPS of 91 cents also

exceeded estimates of 84 cents.