Okta, Inc. (OKTA) reported a 28.63% increase in shares after announcing its second-quarter fiscal 2027 results on Wednesday. The company posted revenues of $805 million, an 11% year-over-year increase, with subscription revenues up 12% to $793 million. Adjusted earnings reached $1.05 per share, surpassing expectations by 9.38%. Remaining Performance Obligation grew 17% to $4.86 billion, indicating strong demand for its services.
During the quarter, the number of customers generating over $1 million in Annual Contract Value increased by more than 20%, surpassing 600. Notable partnerships were established with Anthropic, AWS, Cisco, OpenAI, and others. Okta forecasts total revenues for fiscal 2027 to be between $3.216 billion and $3.226 billion, reflecting a growth of 10-11% from fiscal 2026. The third quarter revenues are expected between $813 million and $817 million, also indicating 10% growth year-on-year.
Okta attributed its strong performance to robust enterprise demand, new product offerings, and an expanding addressable market due to the rising need for AI-security solutions. The company currently holds a Zacks Rank #2 (Buy), suggesting positive investor sentiment and growth potential in the coming quarters.
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