On August 27, Okta Inc. rose 18.97% in regular trading, trading at $160.535/share, with turnover of $337 million. The surge was driven by a strong fiscal Q2 2027 earnings report that exceeded expectations across all key metrics, coupled with an upward revision to full-year guidance.

Okta reported Q2 adjusted earnings of $1.05 per diluted share, up from $0.91 a year earlier, beating the analyst consensus estimate of $0.97 by approximately 8.25%. Revenue for the quarter reached $805 million, up 11% year-over-year, surpassing the $793 million expected by analysts. Current remaining performance obligations (cRPO) grew 14% to $2.59 billion. The company raised its full fiscal year 2027 outlook for the second time, now expecting revenue of $3.22 billion to $3.23 billion and adjusted EPS of $3.90 to $3.94, both above market consensus. For Q3, management guided revenue of $813-$817 million with non-GAAP operating margins of 24%-25%.

Additionally, reports emerged that Palo Alto Networks CEO had explored acquiring Okta over the past 18 months, underscoring its strategic value in the identity security space. RBC Capital Markets raised its price target on Okta to $195 from $166, maintaining an outperform rating.

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