Okta Shares Hit Four-Year High After Strong Q2 Earnings

Shares of Okta Inc. reached a four-year high of $174.85 on Thursday after the company reported second-quarter fiscal year 2027 earnings that exceeded consensus estimates. The company saw a 73% increase in net income to $116 million and a 10.6% rise in total revenues, reaching $805 million.

Chief Finance Officer Brett Tighe attributed the growth to accelerating current Remaining Performance Obligations, success with large customers, and strong contributions from new products. The company reported broad-based demand for its portfolio, specifically citing traction in Okta Identity Governance, AI security, Privileged Access, and Identity Threat Protection, which led to increased bookings and larger deal sizes.

Market reaction was positive, with 18 investment firms raising their price targets. Needham, Truist Securities, and Cantor Fitzgerald set the highest target at $200. Institutional interest also grew, as the number of hedge funds holding positions increased from 49 to 58, with total conviction rising 36% to $1.768 billion.