Okta’s stock climbed 20% in extended trading following the release of fiscal second-quarter results that surpassed analyst expectations. The identity software company reported revenue growth of 11% to reach a figure above prior-year levels of $728 million, while net income increased substantially on a per-share basis compared to the prior year.
The company attributed much of its performance to growing demand for identity and access management solutions, particularly in the emerging artificial intelligence sector. Okta rolled out its Okta for AI Agents platform during the quarter, making the tool available to its full customer base. New products represented 30% of total bookings, and the company disclosed closing dozens of AI-related deals, including a multi-million-dollar agreement with a healthcare organization.
Executive leadership emphasized the long-term significance of identity security in an AI-driven environment. The executive team noted that while network security currently represents the largest cybersecurity category, identity is expected to become increasingly critical as autonomous AI agents proliferate. This perspective aligns with broader industry trends, as competitors including CrowdStrike and Palo Alto Networks have also seen stock appreciation amid heightened focus on AI-related security threats.
Okta completed an acquisition of threat detection firm Permiso Security, valued at approximately $200 million. Management indicated the company would pursue additional targeted acquisitions to strengthen its capabilities rather than pursuing large-scale legacy company purchases primarily for revenue expansion.
The company raised its full-year financial guidance, projecting revenue between $3.22 billion and $3.23 billion, and adjusted earnings per share guidance between $3.90 and $3.94. Subscription backlog metrics also exceeded expectations, with remaining performance obligations reaching $4.86 billion and current obligations on track to reach $2.59 billion in the coming year.
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