Earnings
Home›Earnings›Results›Okta shares rally to a four-year high after upbeat Q2…
Okta shares rally to a four-year high after upbeat Q2 results
Okta posted Q2 net income of $116 million, up from $67 million a year earlier, while revenues rose 10.6% to $805 million.
Okta Inc. shares hit a new four-year high after the company reported strong second-quarter results for fiscal year 2027, pointing to benefits from demand tied to artificial intelligence, according to Yahoo Finance. The stock rose to $174.85 during intraday trading before finishing up 28.6% at $172.91.
For the quarter ended in the period reported, Okta said net income increased to $116 million from $67 million in the second quarter of fiscal year 2026. Total revenues grew 10.6% year over year to $805 million, with subscription revenues at $793 million, up 11.5% from $711 million.
Okta attributed performance to accelerating current Remaining Performance Obligations, success with its largest customers, and strong profitability and cash flow. The company also cited momentum from its core workforce and customer identity efforts, alongside annual contract value acceleration in both businesses, according to comments from Chief Financial Officer Brett Tighe carried by Yahoo Finance.
After the results, 18 investment companies raised their price targets, placing them in a $145 to $200 range. Needham, Truist Securities, and Cantor Fitzgerald set the top target at $200, while BMO Capital upgraded the stock to $187 from $168, and RBC Capital set a $195 target, according to Yahoo Finance.