Okta (OKTA) Q2 2027 Earnings
How Did OKTA Stock React to Q2 2027 Earnings?
S&P 500 over the same 30 days: −0.89%.
Did OKTA Beat Earnings? Q2 2027 Results
Yes. Okta reported Q2 2027 earnings of $1.05 a share on Aug 26, 2026, beating the $0.96 consensus estimate by 8.9%. Revenue was $805.0M against a $793.0M estimate.
Okta delivered a clean beat across the board in its fiscal second quarter of 2027, with the identity security company extending its winning streak to six consecutive quarters of adjusted EPS beats. Adjusted diluted EPS of $1.05 cleared the $0.96 consensus by 8.92%, while revenue of $805.00 million grew 10.6% year over year and edged past estimates by 1.51%, powered by accelerating demand for both workforce and customer identity products, with newer offerings like Okta Identity Governance contributing meaningfully to the mix. GAAP operating income more than doubled to $107.00 million as the company tightened G&A spending and reduced stock-based compensation, signaling genuine operating leverage alongside the top-line growth. Current remaining performance obligations rose 14% year over year to $2.58 billion, reinforcing confidence in the demand pipeline as enterprises increasingly look to secure AI agents at scale. Okta raised its full-year fiscal 2027 revenue outlook to $3.22 to $3.23 billion and lifted non-GAAP EPS guidance to $3.90 to $3.94, prompting at least one analyst to revise its fair value estimate to $200, reflecting sustained AI-driven identity spending.
- Subscription revenue growth of 12% year-over-year
- Accelerating cRPO growth of 14% year-over-year
- ACV acceleration in both workforce and customer identity businesses
- Strong contributions from new products, led by Okta Identity Governance
- Success with largest customers
- Non-GAAP operating margin maintained at 28%
- Free cash flow margin expanded to 28% from 22% year-over-year
“As AI agents transform every layer of technology, every agent needs a trusted identity and clear controls over what it can access and do. As the leading independent and neutral identity provider, Okta helps organizations discover agents, secure their connections, govern their actions, and respond when something goes wrong, giving them the flexibility and control they need to deploy agents safely and at scale.”
Okta CEO, on the earnings call
What Is Okta's Outlook?
For Q3 FY2027, Okta expects total revenue of $813-$817 million (10% YoY growth), cRPO of $2.590-$2.600 billion (11-12% YoY growth), non-GAAP operating income of $196-$200 million (24-25% margin), non-GAAP diluted EPS of $0.92-$0.94, and free cash flow of $175-$185 million (21-23% margin). For full-year FY2027, the company raised guidance to total revenue of $3.216-$3.226 billion (10-11% growth), non-GAAP operating income of $830-$840 million (26% margin), non-GAAP diluted EPS of $3.90-$3.94, and free cash flow of $910-$930 million (28-29% margin). Revenue guidance reflects approximately one percentage point headwind from accelerating the shift of professional services to partners. Free cash flow guidance reflects approximately one percentage point impact from lower interest income due to share repurchases and settlement of the 2026 convertible notes.
OKTA YoY Financials
| Metric | Q2 2027 | Q2 2026 | Year over year |
|---|---|---|---|
| Revenue | $805.0M | $728.0M | +10.6% |
| Gross Profit | $641.0M | $560.0M | +14.5% |
| Operating Income | $107.0M | $41.0M | +161.0% |
| Net Income | $116.0M | $67.0M | +73.1% |
OKTA Revenue by Segment
When Does Okta Report Next?
Figures from SEC filings and company reports. Not investment advice.