Dave Ramsey Responds to Pay Gap Concerns: Market Rates Set the Standard

Okta reported Q2 revenue of $728 mln, beating estimates of $712.01 mln, and adjusted earnings of 91 cents per share, beating estimates of 84 cents per share. Subscription revenue increased 12% YoY, and remaining performance obligations totaled $4.15 bln, up 18% YoY. The company raised its FY26 revenue guidance to $2.875 bln-$2.885 bln and adjusted earnings guidance to $3.33-$3.38 per share.

Title: Okta Reports Strong Q2 Earnings and Raises FY26 Guidance

Okta Inc. (Nasdaq: OKTA) announced its second quarter (Q2) fiscal year 2026 financial results, showcasing a robust performance that exceeded Wall Street expectations. The company reported revenue of $728 million, a 13% year-over-year increase, surpassing estimates of $711.8 million. Adjusted earnings per share (EPS) were 91 cents, beating the consensus estimate of 84 cents. Subscription revenue grew by 12% year-over-year, contributing to the strong performance [1].

Okta's remaining performance obligations (RPO), a measure of subscription backlog, totaled $4.152 billion, an 18% year-over-year increase. The company also reported a net income of $67 million, up from $29 million in the same quarter last year. Operating cash flow was $167 million, and free cash flow was $162 million, reflecting the company's strong financial health [2].

CEO Todd McKinnon highlighted the company's resilience and growth, stating, "Our solid Q2 results are highlighted by continued strength in new product adoption, the public sector, Auth0, and cash flow. In the age of AI, Okta’s independence and neutrality will continue to give organizations the freedom to innovate securely and on their own terms" [2].

Okta also raised its full-year 2026 guidance, expecting total revenue of $2.875 billion to $2.885 billion, a 10% to 11% year-over-year growth. Adjusted earnings per share were forecast to be $3.33 to $3.38, representing a 10% to 11% growth compared to the previous fiscal year [2].

The company's strong performance comes amidst a competitive landscape, with Palo Alto Networks recently announcing plans to acquire Okta rival CyberArk for about $25 billion. Okta's CEO expressed concern about the potential for vendor lock-in, emphasizing the importance of customer choice [1].

Okta's acquisition of Israeli startup Axiom Security, which sells software for managing data access, was also announced in August. The terms of the deal were not disclosed [1].

Okta will host a live video webcast at 2:00 p.m. Pacific Time on August 26, 2025, to discuss the results and outlook. Investors can access the prepared remarks and the news release with the financial results on the company's investor relations website at investor.okta.com [2].

References
[1] https://www.cnbc.com/2025/08/26/okta-q2-earnings-report-2026.html
[2] https://www.morningstar.com/news/business-wire/20250826751986/okta-announces-second-quarter-fiscal-year-2026-financial-results