Home / Business and Economy / Okta Soars on Stellar Q2 Earnings Beat
Okta Soars on Stellar Q2 Earnings Beat
27 Aug
Summary
- Okta exceeded Q2 analyst expectations for EPS and revenue.
- The company raised its full-year 2027 revenue and EPS guidance.
- Strong performance driven by cRPO acceleration and large customer success.
Okta, Inc. exceeded analyst expectations in its second quarter, reporting adjusted earnings per share of $1.05, surpassing the $0.97 estimate. Revenue reached $805 million, an 11% year-over-year increase and above the consensus of $793 million. The company highlighted accelerating current remaining performance obligations (cRPO) and success with large customers as key factors contributing to its strong performance.
For the third quarter of fiscal 2027, Okta provided revenue guidance between $813 million and $817 million, exceeding the $808.2 million consensus. Full-year fiscal 2027 revenue is now projected between $3.216 billion and $3.226 billion, also topping expectations. Adjusted earnings per share guidance for the full year was raised to $3.90-$3.94, exceeding the $3.84 consensus.
Chief Financial Officer Brett Tighe noted steady momentum from Okta's workforce and customer identity segments, leading to ACV acceleration. He also pointed to strong contributions from new products, particularly Okta Identity Governance. The company reported $2.585 billion in cRPO, a 14% year-over-year increase, alongside $234 million in operating cash flow and $227 million in free cash flow for the quarter.
