Okta Beats Q2 on earnings and revenue, lifts full-year outlook, and expands PAM footprint with Axiom Security acquisition
Okta posted a stronger-than-expected second-quarter performance and raised its guidance for the year, as the cybersecurity firm also announced the acquisition of PAM (privileged access management) specialist Axiom Security. The results come as Okta continues to push deeper into identity security for both human and non-human actors.
Key Q2 results
– Adjusted EPS: 91 cents, up 26% year over year
– Revenue: $728 million, up 13% from a year earlier
– Analysts’ expectations: 84 cents per share on $711 million in revenue
– CRPO (current remaining performance obligations) bookings: $2.265 billion, up 13% from a year earlier and above estimates of about $2.203 billion
Guidance for the October quarter
– Revenue guidance: midpoint of $729 million, versus estimates around $721 million
– CRPO guidance: $2.260 billion to $2.265 billion, versus estimates of about $2.257 billion
Full-year outlook raised
– Revenue outlook raised to a range of $2.875 billion to $2.885 billion, up from $2.850 billion to $2.860 billion
Market reaction and context
– In after-hours trading, Okta’s stock rose more than 3%, trading near $95 after the results had been released. The shares had climbed about 16% in 2025 before the earnings report.
– Okta emphasizes protection of privileged accounts and the broader push to secure both human and non-human identities, a growth area as enterprises seek to safeguard access across increasingly complex ecosystems.
– The company also noted the acquisition of Axiom Security, a PAM tool vendor, signaling a deeper expansion into privileged access security beyond its core identity offerings.
– Okta has discussed a forthcoming Cross App Access protocol aimed at AI agents, reinforcing its strategy to secure AI-driven workflows and non-human identities.
Analyst perspective and broader industry context
– Okta’s outlook reflects continuing demand for identity security in a landscape where breaches remain costly and attackers increasingly target privileged access.
– The stock’s technical and rating backdrop shows mixed institutional sentiment: a Composite Strength Rating in the 40s (out of 99) and an Accumulation/Distribution Rating around D, suggesting cautious positioning ahead of longer-term catalysts.
– Competition remains a factor, with large players including Microsoft presenting ongoing headwinds for pure-play identity security firms.
What to watch going forward
– How well Okta integrates Axiom Security and expands PAM capabilities without disrupting current deployments
– The adoption rate of the Cross App Access framework among customers and its impact on non-human identity security
– The durability of CRPO growth as bookings and renewal momentum drive the backlog
– Competitive dynamics with major cloud platforms and security vendors as enterprise identities evolve toward AI-assisted workflows
Summary
Okta delivered solid quarterly results that topped estimates, raised its full-year revenue outlook, and signaled strategic moves to broaden its PAM capabilities through the Axiom Security acquisition. The results underscore ongoing demand for robust identity and access management as organizations widen protections for both human and AI-driven access across complex environments. Investors will be watching how quickly the new PAM initiatives gain traction and how competition shapes Okta’s growth trajectory in the identity security market. Positive momentum remains, supported by stronger backlog levels and a clearer path to expanding beyond its core offerings.