Okta Inc (NASDAQ:OKTA) stock rose 3.58% (As on August 27, 11:26:56 AM UTC-4, Source: Google Finance) after the company reported fiscal results that exceeded Wall Street projections. Okta also raised annual revenue and profit forecasts, betting on growing demand for its identity verification tools as enterprises strengthen defenses against artificial intelligence-powered attacks. Net income of $67 million, or 37 cents per share, was up from $29 million, or 15 cents per share, in the same quarter last year. In the second quarter, five of the top ten deals were in the public sector. The largest deal for the quarter was a group within the Department of Defense. RPO, or subscription backlog, was $4.152 billion, an increase of 18% year-over-year. cRPO, which represents subscription backlog expected to be recognized over the next 12 months, was $2.265 billion, up 13% compared to the second quarter of fiscal 2025. Cash, cash equivalents, and short-term investments were $2.858 billion at July 31, 2025.

OKTA in the second quarter of FY25 has reported the adjusted earnings per share of 91 cents, beating the analysts’ estimates for the adjusted earnings per share of 84 cents, according to LSEG consensus. The company had reported the adjusted revenue growth of 13 percent to $728 million in the second quarter of FY25, beating the analysts’ estimates for revenue of $711.8 million.

Management called for 74 cents to 75 cents in adjusted earnings per share and $728 million to $730 million in revenue for the fiscal third quarter. Analysts surveyed by LSEG had expected earnings of 75 cents per share, with $722.9 million in revenue. Okta expects $2.260 billion to $2.265 billion in current remaining performance obligation, a measurement of subscription backlog to be recognized in the next 12 months, just above StreetAccount’s $2.26 billion consensus.

The company bumped up its fiscal 2026 forecast, which no longer factors in caution because of economic conditions

Okta now sees $3.33 to $3.38 in full-year adjusted earnings per share, with $2.875 billion to $2.885 billion in revenue. The LSEG consensus showed $3.28 in adjusted earnings per share on $2.86 billion in revenue. Okta’s full fiscal year guidance from May included $3.23 to $3.28 per share and $2.850 billion to $2.860 in revenue.

Late last month, Palo Alto Networks, a cybersecurity company that announced an expanded partnership with Okta in July, announced plans to acquire Okta rival CyberArk for about $25 billion. Recently Okta has acquired Israeli startup Axiom, in a deal estimated at around $100 million. The companies did not disclose the purchase price.