OKTA earnings call summary

Prepared Highlights

• Q2 FY2026 total revenue grew 9%–10% year-over-year (prepared); full-year FY2026 total revenue growth raised to 10%–11% (CFO)
• Current RPO (cRPO) growth of 10% for Q3 FY2026; Q2 cRPO growth was 13% (CEO, CFO)
• Non-GAAP operating margin guidance: Q3 FY2026 at 22%; full-year FY2026 raised to 25%–26% (CFO)
• Free cash flow margin guidance: Q3 FY2026 ~21%; full-year FY2026 ~28% (CFO)
• New products (Okta Identity Governance, Okta Privilege Access, Okta Device Access, identity security posture management, identity threat protection with Okta AI, fine-grained authorization) had another strong quarter of contribution (CEO)
• Public sector strength: 5 of top 10 deals in Q2 were with US public sector; largest deal of the quarter was with a DOD agency (CFO)
• Auth0 (Okta Customer Identity) bookings accelerated in FY2026, driven by public and private sector deals (CFO)
• Cash and investments ~$2.9 billion at quarter-end; $510 million in 2025 convertible notes to be settled in cash next week; $350 million in 2026 notes outstanding (CFO)
• Acquisition of Acxiom Security (modern PAM vendor) signed; expected to close later in Q3 FY2026 (CEO)
• Record pipeline generation in Q2; 20 of top 20 deals touched by a partner (CFO, COO)
• Customers >$100k and >$1M: >$1M customers at 495, up 15% year-over-year (CFO)

Official Guidance

• Q3 FY2026: total revenue growth 9%–10%, current RPO growth 10%, non-GAAP operating margin 22%, free cash flow margin ~21% (CFO)
• Full-year FY2026 (raised): total revenue growth 10%–11%, non-GAAP operating margin 25%–26%, free cash flow margin ~28% (CFO)

Mgmt Quotes

• "We are pleased to report solid Q2 results with continued strength with large customers, Auth0, new products, the public sector, and cash flow." (CEO)
• "We are seeing encouraging signals from our newly specialized go-to-market teams." (CEO)
• "We are raising our outlook and now expect total revenue growth of 10% to 11%, non-GAAP operating margin of 25% to 26%, and a free cash flow margin of approximately 28%." (CFO)
• "We remain the only modern, comprehensive, cloud-native solution built to secure every identity, from employees to customers to nonhuman machine identities to AI agents without locking customers in." (CEO)
• "The positive signals from Q2 give us great confidence that our increased specialization will drive long-term growth for both Okta and our customers." (CFO)

Prepared Metrics