Okta shares surge on strong earnings and raised guidance

Okta, Inc. shares surged following the release of its fiscal second-quarter 2027 results, which exceeded market expectations. The company reported revenue of $805 million, an 11% increase year-over-year, with subscription revenue accounting for $793 million.

Key financial metrics showed significant improvement, including a GAAP operating margin that more than doubled to 13%. The company’s remaining performance obligations (RPO) rose 17% to $4.86 billion, and current RPO increased 14% to $2.59 billion, providing increased visibility into future revenue.

CEO Todd McKinnon highlighted the growing demand for identity security driven by the expansion of AI agents, noting that these automated entities require trusted identities and strict access controls. Consequently, Okta raised its full-year revenue outlook, projecting annual revenue between $3.216 billion and $3.226 billion.