Okta Hits YTD High After Strong Q2; Analysts Raise Targets

Okta Inc. shares rose to a year-to-date high after the identity-security company reported second-quarter results that beat expectations and prompted analysts to raise price targets. The stock has nearly doubled since the start of 2026.

For the quarter, Okta reported revenue of $805 million, an 11% increase from a year earlier, and adjusted earnings of $1.05 per share. Current remaining performance obligations, or cRPO, increased about 14% to $2.56 billion. Company executives said bookings and contract metrics strengthened during the period.

Okta attributed bookings strength largely to large enterprise deals, improved sales execution and rising adoption of newer products. Management said new products accounted for roughly 30% of Q2 bookings, with Identity Governance the leading contributor. Deals that included newer products showed an average 40% increase in annual contract value.

The company described its strategy to manage identities created by artificial intelligence, introducing products aimed at securing and governing AI agents. Okta’s Agent Gateway is presented as a way to enforce policies at runtime across multiple platforms. The company reported winning dozens of AI-related deals in the quarter, including a “multimillion-dollar” agreement with a Fortune 50 healthcare company.

In July Okta completed the acquisition of Permiso Security to expand detection and response capabilities for human, non-human and agentic identities.

Okta raised its fiscal 2027 outlook. The company now expects full-year revenue between $3.216 billion and $3.226 billion, adjusted EPS of $3.90 to $3.94 and free cash flow of at least $910 million.

Following the results, RBC raised its price target for Okta to $195, citing cRPO acceleration and record bookings. Citizens increased its target to $180, pointing to cRPO acceleration, enterprise wins and monetization of AI-agent security.

Analysts that lifted targets said converting bookings into faster revenue growth and maintaining strong cash generation will be key to whether the stock sustains its recent gains.