Okta reported second-quarter earnings and revenue that topped consensus estimates, boosted by its public sector business, while the cybersecurity firm's October quarter guidance came in above views.
Reported after the market close on Tuesday, Okta earnings were 91 cents per share on an adjusted basis for the quarter ending July 30, up 26% from a year earlier. The San Francisco-based identity-security firm said revenue climbed 13% to $728 million.
Analysts had expected Okta earnings of 84 cents per share on revenue of $711 million.
"Okta delivered improved sales productivity and record pipeline generation, noting encouraging signals from its go-to-market realignment," said TD Cowen analyst Shaul Eyal in a report. "The company called out strong performance from the public sector vertical, including strong renewals, despite contract restructuring with civilian agencies and procurement delays. Okta noted that 5 of the top 10 second quarter deals, including the largest deal, were with the U.S. public sector."
A key financial metric, current remaining performance obligations, or CRPO, bookings topped views. In Q2, CRPO rose 13% to $2.265 billion vs. estimates of $2.203 billion. CRPO bookings are an aggregate of deferred revenue and order backlog.
For the current quarter ending in October, Okta predicted revenue of $729 million at the midpoint of guidance versus estimates of $721 million. For the October quarter, it predicted CRPO in a range of $2.260 billion to $2.265 billion versus estimates of $2.257 billion.
Also, Okta raised its full-year sales outlook to a range of $2.875 billion to $2.885 billion, up from $2.850 billion to $2.860 billion.
Okta Stock Technical Ratings
On the stock market today, Okta stock rose more than 4% to 95.58 in early trading. Okta stock had advanced 16% in 2025 prior to the earnings report.
The company's security software monitors and manages privileged accounts. Hackers often target employees or management with administrative access to company computer systems.
Okta early Tuesday announced the acquisition of Axiom Security, a PAM security tool vendor.
Similar to CyberArk, Okta also is targeting nonhuman identities. It's expected to launch a "Cross App Access" protocol for artificial intelligence agents.
Okta Stock Technical Ratings
The software protocol secures interactions between apps and agents across ecosystems in one centralized location. "This is important because agents can easily become over privileged and should only have the real time access related to the task at hand," said Jefferies analyst Joseph Gallo in a recent report.
Heading into the earnings report, Okta owned a Composite Strength Rating of 44 out of a best-possible 99, according to IBD Stock Checkup.
Meanwhile, Okta stock holds an Accumulation/Distribution Rating of D. That rating analyzes price and volume changes in a stock over the past 13 weeks of trading. A+ signifies heavy institutional buying; E means heavy selling. Think of a C grade as neutral.
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