Highlights

  • Okta shares were trading at $213.05 on October 23, 2026, up 5.82%.
  • Fiscal second-quarter revenue rose 10.6% to $805 million, from $728 million a year earlier.
  • Operating income rose to $107 million from $41 million, and net income rose to $116 million from $67 million.
  • Remaining performance obligations reached $4,858 million as of July 31, 2026, with 53% expected to convert to revenue over the next 12 months.

Okta (NASDAQ: OKTA) shares were trading at USD 213.05 on October 23, 2026, up 5.82%. The identity security company reported fiscal second-quarter results on August 27 showing steady revenue growth paired with a sharp improvement in operating profitability.

Okta describes itself as the leading independent identity provider, with its Okta Platform and Auth0 Platform enabling customers to securely connect human users and non-human identities to the applications and services they need. The company is headquartered in San Francisco, California. The results discussed here cover the three months ended July 31, 2026, the second quarter of Okta’s fiscal 2027.

Operating Margin Expands as Revenue Growth Continues

Total revenue for the quarter was $805 million, up 10.6% from $728 million a year earlier, consisting of subscription revenue of $793 million, up from $711 million, and professional services and other revenue of $12 million, down from $17 million. Gross profit rose to $641 million from $560 million. Total operating expenses were roughly flat at $534 million, compared with $519 million a year earlier, as general and administrative expenses declined to $98 million from $113 million, helping offset higher research and development spending of $163 million and sales and marketing expenses of $273 million. As a result, operating income rose to $107 million from $41 million, more than doubling year over year.

Net income for the quarter was $116 million, or $0.67 per basic share, compared with $67 million a year earlier. For the first six months of fiscal 2027, net income was $190 million, compared with $129 million in the comparable prior-year period, on revenue of $1,570 million, up from $1,416 million.

Contracted Revenue Base Continues to Build

Okta said total remaining non-cancelable performance obligations under subscription contracts with customers were $4,858 million as of July 31, 2026, of which the company expects to recognize $2,585 million, or 53%, as revenue over the next 12 months, with the balance recognized thereafter. The company’s dollar-based net retention rate was 107% as of July 31, 2026, which it said reflected increased revenue from existing customers through additional users and solutions, net of churn and contraction. Okta continues to position its platform around securing access for both human users and AI agents, as enterprises increasingly deploy autonomous software alongside traditional employee and customer identities.

Share Repurchase Program Continues

In January 2026, Okta’s board of directors authorized a stock repurchase program for up to $1 billion of the company’s Class A common stock. During the quarter, the company repurchased and immediately retired 1,542,442 shares for an aggregate $125 million, bringing repurchases over the first six months of fiscal 2027 to 4,569,262 shares for $366 million. As of July 31, 2026, $555 million of the originally authorized amount remained available for future repurchases.