Okta Stock Surges 29% Post Q2 Earnings: Should You Buy?

OKTA surged 29% following second-quarter fiscal 2027 results that beat expectations on both top and bottom lines. The identity management platform posted revenue of $805 million, up 11% year-over-year, and adjusted EPS of $1.05, topping consensus estimates.

Enterprise momentum accelerated, with customers generating over $1 million in annual contract value growing 20%. New AI-agent security products drove 30% of quarterly bookings, signaling traction in the company's AI strategy.

Management issued positive full-year guidance, projecting revenue growth of 10-11% for fiscal 2027. Zacks Investment Research upgraded OKTA to a #2 (Buy) ranking following the print.

The stock's 29% single-day gain reflects both the earnings beat and investor confidence in the company's ability to monetize its AI security offerings in an environment where enterprise customers are prioritizing identity and access management.