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Jul 31
Okta Q2 2026 Earnings Report
Okta reported solid financial results in Q2 with growth in revenue, profitability, and strong cash flow performance.
Key Takeaways
Okta delivered a strong Q2 FY2026, driven by continued adoption of new products and growth in the public sector and Auth0. Both GAAP and non-GAAP profitability improved significantly, alongside notable increases in cash flow.
Revenue reached $728 million, with strong contributions from subscription services.
GAAP net income rose to $67 million, up from $29 million in the prior year quarter.
Free cash flow was $162 million, more than doubling year-over-year.
Non-GAAP EPS climbed to $0.91, indicating enhanced operational efficiency.
Okta
Okta
Okta Revenue by Segment
Revenue by Segment
Subscription Revenue
CapyFin.comProf. Services & Other Revenue
CapyFin.com Forward Guidance
Okta expects continued growth in Q3 FY2026, with modest revenue expansion and steady profitability as it continues to benefit from its go-to-market specialization.
Positive Outlook
- Q3 revenue projected between $728M and $730M.
- Current RPO guidance suggests $2.26B to $2.265B.
- Non-GAAP operating income expected at $160M to $162M.
- Non-GAAP EPS forecasted at $0.74 to $0.75.
- Free cash flow margin projected around 21%.
Challenges Ahead
- Revenue growth guidance moderates to 9–10% YoY.
- Ongoing go-to-market restructuring may continue to introduce execution risks.
- Competition in identity and access management remains intense.
- Limited visibility into enterprise customer expansion trends.
- Acquisition of Axiom Security expected to be immaterial to near-term metrics.
Revenue & Expenses
Visualization of income flow from segment revenue to net income