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Okta Surges on Robust Q2 Earnings and Upbeat Guidance
27 Aug
Summary
- Okta reports strong Q2 earnings, beating analyst estimates
- Company raises full-year revenue and adjusted EPS guidance
- Okta's identity and access management platform sees growing traction
On August 27, 2025, identity management company Okta (NASDAQ:OKTA) reported strong second-quarter earnings that surpassed analyst expectations and raised its full-year financial forecast. The company announced adjusted earnings per share (EPS) of $0.91 on revenue of $728 million, which grew 12.7% year-over-year. These results exceeded consensus estimates of $0.85 in adjusted EPS and $711.6 million in revenue.
Looking ahead, Okta provided an optimistic outlook, raising its full-year guidance for both revenue and adjusted EPS. Management now expects full-year revenue of $2.88 billion and adjusted EPS of $3.36 at the midpoint. Additionally, the company's revenue guidance for the upcoming third quarter also surpassed Wall Street's expectations.
The strong financial performance and upbeat guidance have been driven by the growing traction of Okta's identity and access management platform, which includes services like identity governance and administration (IGA) and privileged access management (PAM). Analysts have noted that pressures from seat count and changes in the company's sales approach are expected to ease in the second half of fiscal 2026, further bolstering Okta's growth prospects.
