Identity and cybersecurity company Okta has raised its full-year revenue and profit forecasts as the expansion of artificial intelligence agents drives demand for its security services.
The San Francisco-based identity management specialist now expects annual revenue to reach between $3.22 billion and $3.23 billion, up from its previous projection of $3.19 billion to $3.21 billion.
Okta also raised its forecast for full-year adjusted earnings per share to between $3.90 and $3.94, compared to its prior guidance of $3.79 to $3.87 per share.
For the current third fiscal quarter, Okta expects revenue of $813 million to $817 million and adjusted earnings of $0.92 to $0.94 per share. Wall Street analysts surveyed by financial data firm FactSet had anticipated third-quarter revenue of $808.1 million and adjusted earnings of $0.94 per share.
Second-quarter financial performance
The updated projections follow a second fiscal quarter of 2027 in which Okta reported higher net profit and revenue, with both key financial metrics topping Wall Street expectations.
Net profit for the second quarter rose to $116 million, or $1.05 in adjusted earnings per share, surpassing FactSet expectations of $0.97 per share.
Quarterly revenue increased 11 percent year-on-year to $805 million, beating the FactSet consensus estimate of $793 million.
Subscription backlog, representing unbilled customer contracts, reached $4.86 billion, an increase of 17 percent compared to the same period last year.
Artificial intelligence and product growth
Okta noted that its quarterly performance was driven by continued momentum across its core service offerings, which protect the digital identities of workforce members and customer accounts.
Revenue was further boosted by new product offerings, including identity governance tools that manage user access permissions and determine how long access remains valid.
Chief Executive Todd McKinnon highlighted the critical need for Okta services as artificial intelligence agents transform technology systems across industries.
McKinnon said new company products aim to assist corporate clients in discovering AI agents, securing their connections, governing their actions and responding when issues arise.
McKinnon added that every autonomous AI agent requires a trusted digital identity alongside clear administrative controls governing what systems it can access and what actions it can perform.
Corporate background and market position
Founded in San Francisco, California, Okta operates as an enterprise software provider specialising in cloud-based identity and access management. Identity management systems allow organisations to authenticate employees, manage digital permissions and safeguard sensitive network infrastructure against cyber threats.
The growing adoption of artificial intelligence agents in enterprise software has created complex security demands, requiring specialized software to ensure automated systems operate within authorized boundaries. FactSet, which compiled the market estimates cited by Okta, is a financial data and analytics firm that tracks consensus analyst forecasts for publicly traded companies.
