Okta Inc (NASDAQ:OKTA) stock rose 1.78% (As on December 3, 11:15:24 AM UTC-4, Source: Google Finance) after the company reported quarterly results that topped Wall Street expectations, with an upbeat full-year guidance, helped by steady demand from large customers and growing adoption of products tied to identity governance and AI security. Remaining performance obligations grew 17% to $4.29 billion, while current RPO increased 13% to $2.328 billion. The company also generated $218 million in operating cash flow, up from $159 million a year earlier. Non-GAAP operating income was $178 million, or 24% of total revenue, compared to a non-GAAP operating income of $138 million, or 21% of total revenue, in the third quarter of fiscal 2025. Non-GAAP net income was $152 million, compared to non-GAAP net income of $121 million in the third quarter of fiscal 2025. Free cash flow was $211 million, or 28% of total revenue, compared to $154 million, or 23% of total revenue, in the third quarter of fiscal 2025. Cash, cash equivalents, and short-term investments were $2.463 billion at October 31, 2025. During the quarter, the Company settled the remaining principal amount of the 2025 Notes for $510 million in cash.

Further, business highlights in the quarter included Okta announcing on Sept. 25 new capabilities across the Okta Platform and Auth0 Platform designed to help enterprises securely adopt artificial intelligence agents. The capabilities allow organizations to build secure, standards-first AI agents that can be woven into an identity security fabric for end-to-end lifecycle management.

OKTA in the third quarter of FY26 has reported the adjusted earnings per share of 82 cents, beating the analysts’ estimates for the adjusted earnings per share of 75 cents. The company had reported the adjusted revenue growth of 12 percent to $742 million in the third quarter of FY26, beating the analysts’ estimates for revenue of $730.3 million. This is driven by an 11% increase in subscription revenue to $724 million.

The company issued a cautious but improved outlook. For fiscal 2026, Okta now expects revenue between $2.906 billion and $2.908 billion, versus consensus estimates of $2.89 billion, and non-GAAP EPS of $3.43–$3.44, ahead of the $3.37 expected.

For the current quarter, the cybersecurity company expects revenues between $748 million and $750 million and adjusted earnings of 84 cents to 85 cents per share. Analysts forecast $738 million in revenues and EPS of 84 cents for the fourth quarter.