Okta (OKTA) shares surged about 20% on Wednesday after-hours following the release of solid second‑quarter results and an upbeat outlook. The identity management company reported $805 million in revenue, up 11% from a year ago, and beat the consensus estimate of $793.03 million. Also, Q2 EPS of $1.05 came above the analysts’ expectations of $0.96.
CEO Todd McKinnon said the rise of AI agents is creating new demand for secure identity tools. “Every agent needs a trusted identity and clear controls over what it can access and do,” he said, noting that Okta’s neutral position in the market gives companies flexibility as they scale AI systems.
The quarter showed solid growth from Okta’s biggest customers and its main products. Current RPO, a key measure of future subscription revenue, grew 14% to $2.59 billion. The company also saw strong momentum from its newer tools, especially Okta Identity Governance. This helped boost contract value across both workforce and customer identity products. Importantly, Okta has an impressive RPO growth trajectory, as shown in the chart below:
Free cash flow climbed to $227 million, or 28% of revenue, compared with 22% last year. Okta ended the quarter with $2.3 billion in cash and settled the remaining balance of its 2026 notes.
