Okta Inc - Class A
Q2 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.64%.
Did OKTA Beat Earnings? Q2 2026 Results
Okta posted a clean beat across the board in Q2 FY2026, reporting non-GAAP EPS of $0.91 against a consensus estimate of $0.846 — a 7.57% positive surprise — while revenue of $728.00 million came in 2.27% ahead of the $711.87 million Wall Street expected and grew 12.7% year-over-year. The headline numbers were backed by meaningful profitability improvement: GAAP operating income swung to $41.00 million from a loss of $19.00 million a year earlier, and free cash flow more than doubled to $162.00 million, representing a 22% margin. Remaining performance obligations climbed 18% to $4.15 billion, signaling durable bookings momentum even as the company navigates <a href="https://247wallst.com/investing/2026/01/22/oktas-profits-are-up-but-its-credibility-still-hasnt-recovered/">an ongoing credibility rebuild</a> following prior cybersecurity incidents. Okta also notably stripped macroeconomic caution from its forward guidance, raising confidence in its AI-era positioning, including new products to secure AI agents. For Q3, the company guided revenue of $728.00–$730.00 million and full-year FY2026 revenue of $2.875–$2.885 billion, implying 10–11% growth, with non-GAAP EPS of $3.33–$3.38.
- Subscription revenue growth of 12% year-over-year
- Continued strength in new product adoption
- Public sector momentum
- Auth0 strength
- Strong cash flow generation with free cash flow margin of 22%
- RPO growth of 18% year-over-year to $4.152 billion
- Non-GAAP operating margin expansion to 28% from 23% 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
Forward Guidance & Outlook
For Q3 FY2026, Okta expects total revenue of $728-$730 million (9-10% YoY growth), current RPO of $2.260-$2.265 billion (10% YoY growth), non-GAAP operating income of $160-$162 million (22% margin), non-GAAP diluted EPS of $0.74-$0.75, and non-GAAP free cash flow margin of approximately 21%. For full-year FY2026, the company expects total revenue of $2.875-$2.885 billion (10-11% YoY growth), non-GAAP operating income of $730-$740 million (25-26% margin), non-GAAP diluted EPS of $3.33-$3.38, and non-GAAP free cash flow margin of approximately 28%. The company notes it continues to take a prudent approach to forward guidance that factors in go-to-market specialization rolled out in Q1 FY26. The announced acquisition of Axiom Security is expected to be immaterial to all guidance metrics.
OKTA YoY Financials
OKTA Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.