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Okta (OKTA) investors have a key date to watch as the identity and access management company prepares to report its second-quarter fiscal 2027 financial results after the market close on Wednesday, Aug. 26. Wall Street will be closely monitoring the results for signs that Okta’s growth is stabilizing, particularly as enterprises increase spending on cybersecurity and identity solutions.
The upcoming report will also offer investors a fresh look at Okta’s strategy around securing artificial intelligence (AI) agents, an emerging opportunity that could expand the company’s addressable market. With the stock attracting renewed attention amid growing demand for AI-related cybersecurity solutions, investors will be watching revenue growth, subscription momentum, profitability, remaining performance obligations and management’s updated outlook.
About Okta Stock
Okta is a San Francisco, California-based cybersecurity company that provides cloud-based identity and access management solutions, helping organizations secure employee, customer and increasingly nonhuman identities across applications and digital environments. Okta has emerged as a key player in the growing identity-security market, with AI agents creating a new opportunity for the company as enterprises seek to secure machine-driven workflows. Okta has a market cap of $26.13 billion.
OKTA has delivered a powerful rally in 2026, with investor enthusiasm around cybersecurity spending, identity management and the company’s positioning for the emerging AI-driven security opportunity helping propel the stock higher. OKTA has gained 70.37% year-to-date (YTD), and 64.92% over the past 52 weeks, highlighting a sharp improvement in market sentiment toward the cybersecurity provider.
The stock’s momentum has been particularly notable in recent months, with shares reaching a 52-week high of $157 on July 15 after trading as low as $62.66 earlier in the year. The stock has surged 86.34% over the past three months.
Investor enthusiasm intensified as Okta increasingly positioned itself as an identity-security provider for the emerging agentic AI market. In June, the company expanded its partnership with Alphabet's (GOOG) (GOOGL) Google Cloud to help secure AI agents and browsers, linking Okta’s identity platform with Google Cloud’s Gemini Enterprise Agent Platform. In July, Okta introduced new capabilities including Agent Gateway, Agent-to-Agent Connections and Resource Access Certifications for AI Agents, designed to control and govern AI agents as they access enterprise tools and data.
Another major catalyst came on July 30, when Okta agreed to acquire identity-security startup Permiso for approximately $200 million. The deal strengthens Okta’s ability to address human, machine and AI-agent identities and provide comprehensive identity threat protection.
With the stock having already posted substantial gains, the upcoming earnings report will be an important test of whether Okta can deliver the fundamentals needed to support its elevated valuation and sustain its recent momentum.
The stock currently trades at a premium to industry peers at 86.15 times forward price-to-earnings.
Steady Financial Performance
Okta reported its first-quarter fiscal 2027 financial results on May 28, for the quarter ended April 30. Total revenue increased 11% year-over-year (YOY) to $765 million, while subscription revenue also rose 11% to $750 million. The company’s remaining performance obligations (RPO) climbed 16% to $4.7 billion, while current RPO (cRPO) increased 12% to $2.5 billion.
On an adjusted basis, non-GAAP net income increased to $168 million from $158 million, and EPS rose 5.8% to $0.91 from $0.86, beating Wall Street expectations. Cash generation remained a major strength: operating cash flow increased to $277 million from $241 million, while free cash flow climbed to $271 million from $238 million, with the FCF margin holding at 35%. Okta ended April with $2.6 billion in cash, cash equivalents and short-term investments.
Furthermore, for Q2 fiscal 2027, Okta expects revenue of $790 million to $794 million, representing 9% YOY growth, cRPO of $2.505 billion to $2.515 billion, up 11%, non-GAAP operating income of $204 million to $208 million, a 26% operating margin, non-GAAP EPS of $0.95 to $0.97, and free cash flow of $155 million to $165 million, implying a 20% to 21% margin.
For the full fiscal year, revenue guidance was raised to $3.185 billion to $3.205 billion, representing 9% to 10% growth, while non-GAAP operating income is expected at $806 million to $826 million, adjusted EPS at $3.79 to $3.87, and free cash flow at $855 million to $885 million.
On the other hand, analysts anticipate EPS to rise 10.76% YOY to $1.75 in fiscal 2027, and again 25.14% to $2.19 in fiscal 2028.
The consensus EPS for the about to be reported quarter (ended July 2026) is at $0.44, which is a 2.33% growth.
What Do Analysts Expect for Okta Stock?
Most recently, Oppenheimer maintained its “Outperform” rating on Okta and sharply raised its price target to $170 from $125, reflecting greater confidence in the company’s growth outlook. The firm indicated that Okta could deliver roughly two percentage points of upside to the midpoint of its fiscal Q2 2027 revenue guidance, supported by improving sales execution and early evidence of revenue wins and competitive gains.
Also, last month, KeyBanc maintained an “Overweight” rating on Okta and raised its price target to $175 from $130, reflecting the firm’s confidence in Okta’s leadership in identity security and its potential to benefit from the growing need to secure AI agents.
OKTA stock has a consensus “Moderate Buy” rating overall. Out of 43 analysts covering the stock, 29 recommend a “Strong Buy,” two suggest a “Moderate Buy,” 10 analysts stay cautious with a “Hold” rating, one advises a “Moderate Sell,” and one offers a “Strong Sell” rating.
OKTA has already surged past its average analyst price target of $131.10, while the Street-high target price of $175 suggests 19.2% upside ahead.
