Overview

* Okta ( OKTA ) fiscal Q2 revenue grows 13% yr/yr, beating analyst expectations, per LSEG data

* GAAP net income for Q2 rises to $67 mln from $29 mln last yr

* Co announces acquisition of Axiom Security expected to be immaterial to guidance

Outlook

* Okta ( OKTA ) expects Q3 revenue of $728 mln to $730 mln, up 9%-10% y/y

* Company forecasts Q3 non-GAAP operating income of $160 mln to $162 mln

* Okta ( OKTA ) sees Q3 non-GAAP EPS of $0.74 to $0.75

* Company expects FY26 revenue of $2.875 bln to $2.885 bln

* Okta ( OKTA ) anticipates FY26 non-GAAP operating income of $730 mln to $740 mln

* Company projects FY26 non-GAAP EPS of $3.33 to $3.38

* Okta ( OKTA ) expects FY26 non-GAAP free cash flow margin of 28%

Result Drivers

* NEW PRODUCT ADOPTION - Okta ( OKTA ) attributes Q2 revenue growth to strong adoption of new products, particularly in the public sector and Auth0 platform

* PUBLIC SECTOR STRENGTH - Co highlights continued strength in public sector engagements as a key driver for Q2 results

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $728 mln $711.80

Revenue mln (39

Analysts

)

Q2 EPS $0.37

Q2 Net $67 mln

Income

Q2 -$41 mln

Operatin

g Profit

Q2 $711 mln

Subscrip

tion

Revenue

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 28 "strong buy" or "buy", 16 "hold" and 2 "sell" or "strong sell"

* The average consensus recommendation for the it services & consulting peer group is "buy"

* Wall Street's median 12-month price target for Okta Inc ( OKTA ) is $120.00, about 23.9% above its August 25 closing price of $91.35

* The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 34 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)