Okta reported fiscal second-quarter results that topped Wall Street expectations, driving shares up 20% in extended trading. The identity software company reported revenue of $728 million, representing 11% growth from the prior year, along with net income of $116 million, or 65 cents per share, compared to $67 million, or 37 cents per share a year earlier.
The company attributed strong performance partly to increased adoption of its AI security offerings. Okta launched its Okta for AI Agents tool to all customers during the quarter, with new products representing 30% of total bookings. The firm noted it closed dozens of AI-related deals, including a multi-million-dollar contract with a healthcare organization. Executive leadership cited the emergence of agentic AI and agent-orchestrated cybersecurity threats as primary drivers of customer investment in identity management solutions.
Chief Executive Todd McKinnon indicated the agentic AI security sector remains nascent, with recent security incidents such as the OpenAI Hugging Face hack serving to accelerate customer interest. McKinnon stated that while network security currently dominates the cybersecurity market, identity management is positioned to become the dominant category over a five to ten-year horizon as the number of deployed agents expands significantly.
Okta finalized its acquisition of threat detection startup Permiso Security, valued at approximately $200 million. Leadership signaled the company would pursue additional targeted acquisitions designed to enhance existing capabilities rather than pursuing large-scale legacy company purchases. Remaining performance obligations climbed 17% year over year to $4.86 billion, exceeding analyst expectations of $4.70 billion. Current remaining performance obligations due within 12 months rose 14% to $2.59 billion.
The company elevated full-year guidance, projecting revenue between $3.22 billion and $3.23 billion, slightly above prior guidance and consensus estimates. Adjusted earnings guidance moved to a range of $3.90 to $3.94 per share, compared to Wall Street expectations of $3.84 per share. Okta shares have appreciated 55% year to date.
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