Okta Raises Revenue Forecast Following Record Subscription Backlog

Okta Inc. raised its annual revenue growth forecast to 10%–11%, an increase from its previous estimate of 9%–10%. The cybersecurity company reported second-quarter revenue of $805 million, representing an 11% increase and extending a nine-year streak of double-digit growth. This performance surpassed analyst expectations, which had predicted a slowdown into single digits.

Chief Executive Officer Todd McKinnon attributed the growth to the increased corporate adoption of artificial intelligence systems. He noted that 30% of bookings originated from new products, including Okta for AI Agents. McKinnon described such catalysts as necessary for the company to reach revenue targets of $10 billion, $20 billion, and $30 billion.

Alongside the revenue outlook, the company raised its adjusted earnings forecast for the year. Okta expects third-quarter revenue to increase by 11.5% year-over-year, supported by a record subscription backlog.