Okta Stock Earnings Reports

Okta reported a strong Q2 FY2026 with broad product contribution (Identity Governance, Privileged Access, Device Access, Identity Security Posture Management, Identity Threat Protection with Okta AI, fine-grained authorization) and continued strength with large customers, Auth0, public sector, and cash flow. Management highlighted early benefits from the go-to-market specialization (improved sales productivity and record pipeline), strong public sector performance (five of the top 10 deals in Q2 were with the US public sector, including a large DOD deal), and accelerating adoption of new products. Okta announced a definitive agreement to acquire Acxiom Security (a modern PAM vendor) to bolster privileged access capabilities and team expertise; the deal is expected to close later this quarter. They introduced and promoted an open standard called cross-app access to manage AI agents and inter-app connections, positioning Okta as central to securing AI and nonhuman identities. Financially, CFO Brett Tighe said the company is removing prior conservatism around macro and federal headwinds, raising FY26 revenue growth to 10%–11%, targeting non-GAAP operating margin of 25%–26%, and a free cash flow margin of ~28%, while ending the quarter with roughly $2.9B of cash and equivalents and planning a $510M cash settlement on convertible notes next week. Management reiterated Okta’s independence/neutrality as a competitive advantage and emphasized continued focus on profitability, capital allocation (investing in business, tuck-in M&A, opportunistic note repurchases), and driving long-term growth.