EarningsQ2 2027 Earnings Report
MX:OKTA Q2 2027 EPS Results
Actual EPS$19.09
Consensus EPS$17.54
Beat/MissBeat by +$1.55
One Year Ago EPS$16.54
MX:OKTA Q2 2027 Revenue Results
Actual Revenue$14.63B
Expected Revenue$14.42B
Beat/MissBeat by +$218.12M
YoY Revenue Growth+10.58%
Earnings Announcement Details
QuarterQ2 2027
Date08/26/2026
TimeAfter Close
Conference CallWednesday, August 26, 2026
MX:OKTA Upcoming Earnings
Okta's next earnings date is estimated for December 2, 2026, based on past reporting schedules.
Q2 2027 Earnings Call Audio
MX:OKTA Q2 2027 Earnings Call
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Q2 2027 Earnings Slide Deck
Q2 2027 Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed broadly positive operational and financial momentum: record non-Q4 bookings, strong enterprise ACV growth, 30% of bookings from new products, and improving profitability and cash flow with healthy guidance. AI security and Okta for AI Agents are showing early customer traction, important partnerships, and strategic certifications (IL5, FedRAMP, HIPAA), but management emphasized AI monetization is still early and immaterial to FY '27 results. Short-term headwinds include a deliberate strategy to shift professional services to partners (about a 1-point revenue impact), ongoing market confusion among vendors, and evolving pricing/consumption models for agent workloads. On balance, positive operational execution, strong balance sheet and growing product breadth outweigh the early-stage uncertainties around AI revenue realization.Company Guidance
Record Non-Q4 Bookings and Strong Top-Line Momentum
Q2 was a record bookings quarter for a non-Q4, with acceleration in top-line metrics driven by pipeline conversion, deal expansions and sales productivity gains. Management cited a strong first half of FY '27 and momentum across core workforce and customer identity businesses.
New Products Contribution and ACV Uplift
New products represented approximately 30% of bookings in Q2. When any new product is included in a deal, the average ACV uplift is about 40%, reflecting successful cross-sell/upsell performance (Okta Identity Governance was the leading contributor).
Large Enterprise Strength and ACV Growth
Greater strength upmarket: over 20% growth in $1M-plus ACV customers, with the company now having over 600 customers with greater than $1M in ACV—highlighting durable enterprise demand and expansion motions.
AI Product Traction (Okta for AI Agents)
Okta for AI Agents is generally available (GA) and produced dozens of deals in Q2, including several million-dollar-plus deals. Management emphasized dozens of AI deals closed in the quarter and early enterprise wins (e.g., Fortune 50 healthcare, global consulting firm, large asset manager).
Strategic Partnerships and Standards Leadership
Deepening ecosystem: partnerships and integrations with Anthropic (first identity provider supporting Enterprise Managed Auth for MCP connectors), AWS, Cisco, OpenAI, Databricks, Snowflake and 25+ new Cross-App Access integrations—strengthening neutrality and distribution advantages.
Public Sector and Security Certifications
Expanded U.S. federal opportunity with general availability of Okta for AI Agents-Core (supporting FedRAMP and HIPAA) and achievement of Impact Level 5 (IL5) authorization for DoD—positioning Okta to address DoD Zero Trust mandates.
Permiso Acquisition and Identity Threat Protection Expansion
Closed acquisition of Permiso (cloud-native identity security platform) to enhance visibility and runtime controls for human, nonhuman and agent identities. Management framed this tuck-in as expanding post-auth behavioral and threat detection (Permiso adds many more native risk detections vs. prior capabilities).
Strong Balance Sheet, Cash Flow and Capital Returns
Ended Q2 with approximately $2.3 billion in cash, cash equivalents and short-term investments. Converted remaining $350M of convertible notes to cash (no convertible debt remaining). Repurchased and retired ~1.5M shares for $125M; $555M remains available under the $1B repurchase program.
Profitability and Cash Flow Guidance
Management maintained a disciplined approach with healthy profitability and FCF margins. Q3 guidance: total revenue growth ~10%, current RPO growth 11–12%, non-GAAP operating margin 24–25%, free cash flow margin 21–23%. FY '27 guidance: revenue growth 10–11%, non-GAAP operating margin ~26%, free cash flow margin 28–29%.
Operational Execution and GTM Productivity
Management highlighted productivity gains from a stable sales force with low attrition and high AE tenure; channel partners were engaged in all top 20 deals in Q2 and sourced the biggest deal of the quarter, indicating improved partner-led outcomes.
MX:OKTA Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed