Okta reported fiscal second-quarter revenue of $805 million, up 11 percent year-over-year and ahead of the $795 million consensus estimate. Net income surged 73 percent to $116 million, or 65 cents per share, versus $67 million, or 37 cents per share, a year prior.
The company raised full-year revenue guidance to $3.22 billion to $3.23 billion from $3.19 billion to $3.21 billion, and lifted adjusted earnings guidance to $3.90 to $3.94 per share, above the Wall Street consensus of $3.84. Okta shares jumped 20 percent in extended trading.
The driver: Okta for AI Agents, a new tool to manage and secure AI agents across customers, accounted for 30 percent of total bookings in the quarter. CEO Todd McKinnon said the company closed dozens of AI-focused deals, including a multi-million-dollar healthcare contract. McKinnon told CNBC he expects identity to become the largest cyber category within five to 10 years as millions of AI agents proliferate, and that recent breaches like the OpenAI Hugging Face incident are accelerating buyer interest.
Okta's remaining performance obligations rose 17 percent year-over-year to $4.86 billion, exceeding analyst estimates of $4.70 billion. Current RPO—subscription backlog recognized within 12 months—climbed 14 percent to $2.59 billion.
The company completed its $200 million acquisition of threat detection startup Permiso Security. McKinnon said Okta will continue pursuing "tuck-in" acquisitions but avoid buying large legacy players solely for revenue. The cybersecurity sector is heating up: peers CrowdStrike and Palo Alto Networks have hit record highs, and Okta shares are up 55 percent year-to-date.
