Okta (OKTA) Q2 2026 Earnings
How Did OKTA Stock React to Q2 2026 Earnings?
S&P 500 over the same 30 days: +2.64%.
Did OKTA Beat Earnings? Q2 2026 Results
Yes. Okta reported Q2 2026 earnings of $0.91 a share on Aug 26, 2025, beating the $0.85 consensus estimate by 7.6%. Revenue was $728.0M against a $711.9M estimate.
Okta delivered a strong second quarter for fiscal 2026, posting adjusted diluted EPS of $0.91, beating the $0.85 consensus by 7.57%, as revenue of $728.00 million grew 12.7% year-over-year and cleared expectations by 2.27%. The headline numbers were underpinned by a meaningful margin expansion story, with non-GAAP operating income reaching $202.00 million, representing a 28% non-GAAP operating margin compared to 23% a year earlier, driven by continued cost discipline and accelerating subscription momentum. Free cash flow roughly doubled to $162.00 million, lifting the margin to 22% from 12% in the year-ago period, while remaining performance obligations grew 18% to $4.15 billion, signaling durable demand. Analysts and investors <a href="https://247wallst.com/investing/2025/08/26/live-will-okta-move-higher-after-q2-earnings/">weighing Okta's next move</a> will note that management removed prior macro and federal spending caution from its outlook, guiding full-year fiscal 2026 revenue of $2.88 billion to $2.88 billion and adjusted diluted EPS of $3.33 to $3.38, with free cash flow margin of approximately 28%.
- Subscription revenue growth of 12% year-over-year
- RPO growth of 18% year-over-year to $4.152 billion
- Strong public sector performance
- Auth0 continued strength
- Non-GAAP operating margin expansion to 28% from 23% year-over-year
- Free cash flow margin improvement to 22% from 12% year-over-year
“Okta's unified identity platform is winning customers ranging from the world's largest global organizations to massive government agencies. Our solid Q2 results are highlighted by continued strength in new product adoption, the public sector, Auth0, and cash flow. In the age of AI, Okta's independence and neutrality will continue to give organizations the freedom to innovate securely and on their own terms.”
Okta CEO, on the earnings call
What Was Okta's Outlook in Q2 2026?
For Q3 FY26: Total revenue of $728M–$730M (9–10% YoY growth); cRPO of $2.260B–$2.265B (10% growth); Non-GAAP operating income of $160M–$162M (22% margin); Non-GAAP diluted EPS of $0.74–$0.75 (assuming ~185M diluted shares, 26% non-GAAP tax rate); Non-GAAP free cash flow margin of ~21%. For full-year FY26: Total revenue of $2.875B–$2.885B (10–11% growth); Non-GAAP operating income of $730M–$740M (25–26% margin); Non-GAAP diluted EPS of $3.33–$3.38 (assuming ~185M diluted shares, 26% non-GAAP tax rate); Non-GAAP free cash flow margin of ~28%. The announced acquisition of Axiom Security is expected to be immaterial to all guidance metrics. The company notes it continues to take a prudent approach to guidance factoring in go-to-market specialization rolled out in Q1 FY26.
OKTA YoY Financials
| Metric | Q2 2026 | Q2 2025 | Year over year |
|---|---|---|---|
| Revenue | $728.0M | $646.0M | +12.7% |
| Gross Profit | $560.0M | $491.0M | +14.1% |
| Operating Income | $41.0M | $9.9M | +315.8% |
| Net Income | $67.0M | $29.0M | +131.0% |
OKTA Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.