Okta Stock Rises on Strong Earnings and Raised Guidance

Okta (OKTA) shares climbed 5% after the identity software company surpassed Wall Street expectations for its fiscal second quarter and lifted its forward guidance. The San Francisco-based firm reported earnings per share of $0.91, beating the $0.84 consensus, while revenue reached $728 million against forecasts of $711.8 million.

The company noted increased caution among U.S. government clients following the creation of the Department of Government Efficiency (DOGE), though net retention rates held steady at 106%. Okta now projects current-quarter earnings between $0.74-$0.75 on revenue of $728-$730 million, exceeding analyst estimates.

For fiscal 2026, the company raised its outlook to $3.33-$3.38 in earnings with $2.875-$2.885 billion in revenue. The results demonstrate Okta's continued momentum in enterprise identity solutions despite macroeconomic headwinds.