NASDAQ$OKTA

Okta Inc · Q2 2026 earnings

Q2 2026 earnings · · After market close · Investor relations

Briefing

Okta reported solid financial results in Q2 with growth in revenue, profitability, and strong cash flow performance.

Okta delivered a strong Q2 FY2026, driven by continued adoption of new products and growth in the public sector and Auth0. Both GAAP and non-GAAP profitability improved significantly, alongside notable increases in cash flow.

  • Revenue reached $728 million, with strong contributions from subscription services.
  • GAAP net income rose to $67 million, up from $29 million in the prior year quarter.
  • Free cash flow was $162 million, more than doubling year-over-year.
  • Non-GAAP EPS climbed to $0.91, indicating enhanced operational efficiency.

Headline financials

Total Revenue

$728M

Previous: $646M+12.7%
EPS

$0.37

Previous: $0.15+146.7%
Remaining performance obligations

$4.15B

Previous: $3.52B+18.1%
Current remaining performance obligations

$2.27B

Previous: $2B+13.0%
Operating cash flow

$167M

Previous: $86M+94.2%
Capital Expenditures

-$3M

Previous: -$6M+50.0%
Free Cash Flow

$405M

Previous: $299M+35.5%
Net Income

$67M

Previous: $29M+131.0%
Operating Income

$41M

Previous: -$19M+315.8%
Gross Profit

$560M

Previous: $491M+14.1%
Cash & Equivalents

$876M

Previous: $515M+70.1%
Total Assets

$9.55B

Previous: $9.07B+5.3%

Revenue & EPS history

Okta · Revenue · Quarterly

$728M

Q2 2026+12.7%vs Q2 2025
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Okta · $765M total across 2 segments · Q1 2027

  • Subscription
    $750M
  • Professional services and other
    $15M

Forward guidance

Okta expects continued growth in Q3 FY2026, with modest revenue expansion and steady profitability as it continues to benefit from its go-to-market specialization.

Tailwinds

  • Q3 revenue projected between $728M and $730M.
  • Current RPO guidance suggests $2.26B to $2.265B.
  • Non-GAAP operating income expected at $160M to $162M.
  • Non-GAAP EPS forecasted at $0.74 to $0.75.
  • Free cash flow margin projected around 21%.

Headwinds

  • Revenue growth guidance moderates to 9–10% YoY.
  • Ongoing go-to-market restructuring may continue to introduce execution risks.
  • Competition in identity and access management remains intense.
  • Limited visibility into enterprise customer expansion trends.
  • Acquisition of Axiom Security expected to be immaterial to near-term metrics.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2026

Historical avgQ2 2026

+2.3%

Avg return

Earnings day

+1.5%

Avg return

5 days after

+0.4%

Avg return

30 days after

58%

21 / 36 earnings

Positive

+31.6%

Q3 2023

Best reaction

-33.5%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2027
Q4 2026+11.0%+11.0%+11.8%
Q3 2026+5.3%+6.6%+2.2%
Q2 2026+1.4%+1.3%-0.4%
Q1 2026-16.1%-16.5%-21.6%
Q4 2025+24.3%+29.0%+15.0%
Q3 2025+6.5%+4.9%-2.5%
Q2 2025-18.0%-18.8%-23.7%
Q1 2025-7.6%-8.0%-2.6%
Q4 2024+23.5%+25.7%+20.4%
Q3 2024-7.7%-0.2%+24.7%
Q2 2024+16.2%+19.9%+13.4%
Q1 2024-17.1%-20.1%-23.0%
Q4 2023+13.5%+18.0%+21.0%
Q3 2023+31.6%+20.9%+33.3%
Q2 2023-33.5%-29.1%-37.6%
Q1 2023+16.5%+18.1%+13.7%
Q4 2022-8.8%-16.2%-19.2%
Q3 2022+2.8%+1.2%+4.2%
Q2 2022+3.1%+2.6%-9.7%
Q1 2022-8.9%-8.9%+0.8%
Q4 2021-12.7%-19.5%-11.3%
Q3 2021+2.3%+3.8%+7.3%
Q2 2021-7.2%+0.2%-3.5%
Q1 2021+9.0%+11.3%+13.4%
Q4 2020-4.1%-9.2%-9.4%
Q3 2020-2.9%-1.8%-2.9%
Q2 2020-5.8%-6.3%-28.1%
Q1 2020+7.3%+8.1%+17.1%
Q4 2019-1.9%+0.8%+8.6%
Q3 2019+10.4%+6.4%+4.1%
Q2 2019+20.1%+21.7%+8.7%
Q1 2019-6.8%-5.4%-3.7%
Q4 2018+11.5%+3.8%+1.1%
Q3 2018+2.9%-6.6%-6.4%
Q2 2018+12.1%+8.8%+3.6%
Q1 2018+9.3%-4.2%-5.8%
Q4 2017
Q3 2017
Q2 2016
Q1 2016
Q4 2015
Q3 2015

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