Okta's shares surged by approximately 19% in after-hours trading and premarket on August 27, 2026, following the release of its second-quarter fiscal 2027 financial results. The identity management specialist reported adjusted earnings of $1.05 per share, surpassing the consensus estimate of $0.97. Revenue for the quarter reached $805 million, an 11% year-over-year increase, exceeding the anticipated $795 million. This strong performance led to an upgrade in the company's full-year fiscal 2027 guidance.
The company now projects full-year revenue between $3.216 billion and $3.226 billion, up from the previous range of $3.185 billion to $3.205 billion, and above the $3.200 billion consensus. Adjusted earnings per share guidance was also raised to $3.90 to $3.94, compared to the prior forecast of $3.79 to $3.87 and analyst estimates of $3.84. This positive outlook is partly attributed to the growing demand for identity security solutions, particularly in the context of artificial intelligence agents.
Okta's CEO, Todd McKinnon, highlighted the increasing importance of securing AI agents, which are creating a significant number of new digital identities requiring monitoring and protection. The company has already secured dozens of AI-related contracts, including a multimillion-dollar deal with a Fortune 50 healthcare company, following the broader rollout of its "Okta for AI Agents" offering. New products accounted for 30% of bookings, and subscription backlog (remaining performance obligations) grew 17% to $4.86 billion, exceeding expectations of $4.70 billion. Okta also completed the acquisition of Permiso Security for approximately $200 million and plans for further strategic, smaller acquisitions.
