Okta reported results for the second quarter, with both profit and revenue exceeding market expectations. Expanded AI adoption by customers boosted demand, and the company announced an upward revision to its full-year outlook.
Cybersecurity company Okta reported adjusted EPS of $1.05 and revenue of $805 million for the second quarter, both above analyst expectations. Subscription remaining performance obligations were solid, while current remaining performance obligations (cRPO) also exceeded market expectations.
Demand related to AI, including new products, was boosted by the expansion of AI adoption among customers, driving subscription remaining performance obligations to a record high. The new “Okta for AI Agents” product also contributed to revenue, although it has not yet made a significant contribution to cRPO.
CEO McKinnon indicated that growth could accelerate, and the company issued guidance based on its past performance. While market participants generally viewed the results favorably, some said the upward revision to the outlook reflected the second-quarter upside.
For the full year, the company expects EPS of $3.90–3.94, revenue of $3.22–3.23 billion, and operating income of $830–840 million. For the third quarter, it forecasts EPS of $0.92–0.94, revenue of $813–817 million, and operating income of $19.6–20.0 million.