Cybersecurity firm Okta Q2 revenue beats estimates

Okta

26/08/2025 21:10

Overview

Okta fiscal Q2 revenue grows 13% yr/yr, beating analyst expectations, per LSEG data

GAAP net income for Q2 rises to $67 mln from $29 mln last yr

Co announces acquisition of Axiom Security expected to be immaterial to guidance

Outlook

Okta expects Q3 revenue of $728 mln to $730 mln, up 9%-10% y/y

Company forecasts Q3 non-GAAP operating income of $160 mln to $162 mln

Okta sees Q3 non-GAAP EPS of $0.74 to $0.75

Company expects FY26 revenue of $2.875 bln to $2.885 bln

Okta anticipates FY26 non-GAAP operating income of $730 mln to $740 mln

Company projects FY26 non-GAAP EPS of $3.33 to $3.38

Okta expects FY26 non-GAAP free cash flow margin of 28%

Result Drivers

NEW PRODUCT ADOPTION - Okta attributes Q2 revenue growth to strong adoption of new products, particularly in the public sector and Auth0 platform

PUBLIC SECTOR STRENGTH - Co highlights continued strength in public sector engagements as a key driver for Q2 results

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$728 mln
$711.80 mln (39 Analysts)
Q2 EPS
$0.37
Q2 Net Income
$67 mln
Q2 Operating Profit
-$41 mln
Q2 Subscription Revenue
$711 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 28 "strong buy" or "buy", 16 "hold" and 2 "sell" or "strong sell"

The average consensus recommendation for the it services & consulting peer group is "buy"

Wall Street's median 12-month price target for Okta Inc is $120.00, about 23.9% above its August 25 closing price of $91.35

The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 34 three months ago

Press Release: ID:nBw2Ym66ga

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)