Okta Inc. Q2 FY2026 Earnings Call Summary

Okta delivered a strong second quarter, exceeding expectations with robust revenue growth and exceptional cash flow generation. The company's strategic focus on identity management, particularly in the evolving AI landscape, positions it well for continued relevance and profitability.

Looking ahead, Okta's management provided a prudent outlook for the upcoming quarter and the full fiscal year 2027. For the third quarter of fiscal 2027, the company anticipates total revenue to be between $813 million and $817 million, reflecting a 10% year-over-year growth rate. They also expect non-GAAP diluted net income per share to be in the range of $0.92 to $0.94. For the full fiscal year 2027, Okta now projects total revenue of $3.216 billion to $3.226 billion, representing 10% to 11% year-over-year growth. This full-year revenue guidance incorporates an approximately one percentage point impact due to the strategic shift of professional services to partners. Management also reiterated strong non-GAAP operating income and free cash flow expectations for the full year, signaling continued focus on profitability and cash generation.

As AI agents transform every layer of technology, every agent needs a trusted identity and clear controls over what it can access and do. As the leading independent and neutral identity provider, Okta helps organizations discover agents, secure their connections, govern their actions, and respond when something goes wrong, giving them the flexibility and control they need to deploy agents safely and at scale. — Todd McKinnon, Chief Executive Officer and co-founder