Okta Inc (NASDAQ:OKTA) shares are climbing Wednesday morning after the identity security company delivered a strong second-quarter earnings beat and raised its full-year guidance. Here’s what investors need to know.
After the market close on Tuesday, Okta reported second-quarter revenue of $728 million, surpassing analyst estimates of $712.01 million. The company posted adjusted earnings of 91 cents per share, also beating the consensus forecast of 84 cents. Total revenue was up 13% from the same period last year.
For its third quarter, Okta expects revenue between $728 million and $730 million, above Wall Street’s estimate of $723.55 million. The company also boosted its fiscal 2026 forecast, now anticipating full-year revenue of $2.875 billion to $2.885 billion and adjusted earnings per share of $3.33 to $3.38.
What Else: Following the strong report, Cantor Fitzgerald reiterated its Overweight rating and $130 price target on Okta’s stock. The firm praised the company’s “strong execution” in the second quarter, noting that it outperformed consensus estimates on key metrics like revenue, operating margin, and EPS.
Cantor also viewed the company’s recently announced acquisition of Axiom, a cloud security startup, as a strategic expansion into the Privileged Access Management market.
Analysts believe the strong demand reflects improving sales productivity and the appeal of an independent identity platform. Cantor also noted that partners contributed to all 20 of the top 20 deals in the quarter, showcasing improving channel productivity.
Price Action: According to data from Benzinga Pro, OKTA shares are trading higher by 2.9% to $94.24 Wednesday morning. The stock has a 52-week high of $127.57 and a 52-week low of $70.56.
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How To Buy OKTA Stock
Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.
For example, in Okta’s case, it is in the Information Technology sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
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