Okta Inc. (NASDAQ: OKTA) reported quarterly results on Wednesday that exceeded expectations and boosted its full-year outlook, supported by strong enterprise demand and increasing adoption of identity governance and AI-enabled security products.
The company posted non-GAAP EPS of $0.82, above the $0.75 consensus. Revenue grew 12% to $742 million, surpassing expectations of $730.3 million, driven by an 11% increase in subscription revenue to $724 million.
Remaining performance obligations (RPO) rose 17% to $4.29 billion, while current RPO advanced 13%. Okta generated $218 million in operating cash flow, up from $159 million a year ago, and posted $211 million in free cash flow.
CEO Todd McKinnon said momentum remained strong among large customers and noted rising interest in Okta Identity Governance and Auth0 for AI Agents, citing the company’s central role in securing AI-led digital workflows.
GAAP net income improved to $43 million, compared with $16 million last year. Non-GAAP operating income reached $178 million, representing a 24% margin.
For fiscal 2026, Okta now expects revenue of $2.906–$2.908 billion, slightly ahead of the $2.89 billion consensus, and non-GAAP EPS of $3.43–$3.44, above the $3.37 estimate.
Current-quarter guidance calls for revenue of $748–$750 million and non-GAAP EPS of $0.84–$0.85, with cRPO growth projected at 8.9%, just below consensus expectations of 9.1%.
