Okta (NASDAQ: OKTA), the identity security software provider, saw its shares jump sharply in after-hours trading on Wednesday after beating second-quarter earnings estimates and raising full-year guidance for the second straight quarter.
The stock closed the regular session on Wednesday at $134.42, up 2.9% from the previous close of $130.61, before the results landed after the closing bell. That earlier move does not reflect the earnings reaction, which markets will price in when Nasdaq opens today.
Okta reported second-quarter revenue of $805m, up 11% year on year, with subscription revenue of $793m, up 12%. Non-GAAP diluted earnings per share came in at $1.05, against $0.91 a year earlier, and both figures beat analyst estimates, extending a run of four consecutive quarterly beats. The company raised full-year revenue guidance to $3.216bn-$3.226bn and non-GAAP earnings per share guidance to $3.90-$3.94.
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Okta’s results showed cRPO, the backlog of subscription revenue expected within 12 months, accelerating to 14% year-on-year growth to $2.585bn, alongside total RPO growth of 17% to $4.858bn. Chief financial officer Brett Tighe said the quarter’s performance was highlighted by accelerating cRPO growth. Chief executive Todd McKinnon linked the acceleration to AI adoption, saying: “As AI agents transform every layer of technology, every agent needs a trusted identity and clear controls over what it can access and do.” New products, led by Okta Identity Governance, were cited on the earnings call as accounting for roughly 30% of bookings.
Rival cybersecurity firm CrowdStrike also beat estimates and raised guidance the same evening, citing AI-driven cyber threats, pointing to a broader pickup in AI-linked security spending across the sector.
Okta’s shares have traded between $62.66 and $157 over the past 52 weeks. Traders will get the first exchange-confirmed read on where Wednesday’s after-hours gains leave the stock within that range when Nasdaq opens today.
