05:00 PM EDT, 08/26/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

OKTA ( OKTA ) delivered solid Q2 beats, with total revenue of $728M (+13% Y/Y), exceeding consensus by $16.1M, and non-GAAP EPS of $0.91 (+26% Y/Y), beating estimates by $0.06. Subscription revenue of $711M grew 12% Y/Y, while cRPO of $2.265B rose 13% Y/Y, indicating healthy backlog growth from large enterprise and public sector wins. The company announced an agreement to acquire Privileged Access Management (PAM) provider Axiom Security, enhancing OKTA's ( OKTA ) PAM capabilities for broader use cases in an AI environment. Management raised FY 26 revenue guidance to $2.875B-$2.885B (10%-11% growth), above consensus of $2.86B, and lifted non-GAAP operating margin guidance to 25%-26%. We see the stronger outlook as a sign of sustained momentum in the second half of the year. Significant margin expansion demonstrates strong operating leverage, with non-GAAP operating margin reaching 28% in Q2, up 500 bps Y/Y, while free cash flow of $162M doubled from the prior year, highlighting improving operational efficiency.