OKTA Nasdaq Russell 1000 Earnings call
Okta, Inc. (OKTA) · Q2 2026 results and valuation
Share price: $182.25 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · fiscal Q2 2027 · published 26 Aug 2026 and 28 May 2026
Net income up 56.8% on the previous quarter. Management sounded cautious, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+56.8%
Net income vs Q1 2026
Net income 116.0M vs 74.0M
Revenue +5.2%
Against the same quarter last year (Q2 2025) it is +73.1%, so it is not just seasonal.
2 · How management spoke
Cautious
Among the least upbeat of all company calls
Answers to analysts: typical, in line with the script.
Similar to last call.
3 · What stood out
Okta secured a multimillion-dollar deal with a Fortune 50 healthcare company for AI agents and won dozens of new AI deals in Q2.
Valuation
Is Okta, Inc. undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2026-01-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 16.3% growth a year (3-year revenue growth), the model's fair value is $195.72 a share — the stock trades 7% below it. Today's price assumes 15.2% growth a year.
Current price
$182.25
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+15.2% for 10 yrs
Fair value / share
$195.72
Buy below
$146.79
Price vs fair value
Undervalued 7%
Price vs buy-below price
Overvalued 24%
Read between the lines
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Key theme
Okta's product breadth was a key driver in securing a multimillion-dollar Okta for AI Agents deal with a Fortune 50 healthcare…
Source quote
“Our product breadth was a key driver in securing a multimillion-dollar Okta for AI Agents deal with a Fortune 50 healthcare... While adoption remains in its early stages, momentum is growing, and those advantages are translating into customer demand reflected in the dozens of AI deals we won in Q2. AI was spreading across their organization, and they couldn't tell where their agents were, what those agents were connected to and what they could do.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“In addition to our organic product innovation, we have a successful track record with our tuck-in acquisition strategy, which helps accelerate our product road map.”
“I mean you hit the nail on the head, Rudy, Q1 and Q2 this year have been quite strong in Q2, like we talked about, record non-Q4 bookings quarter for...”
“Our strong core business and growing portfolio of new products provides the foundation to extend Okta's leadership in identity security.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-07-31)
| Metric | Q2 2026period end 2026-07-31 | Q1 2026period end 2026-04-30 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 805.0M | 765.0M | +5.2% | 728.0M | +10.6% |
| Gross profit | 641.0M | 595.0M | +7.7% | 560.0M | +14.5% |
| Operating income | 107.0M | 56.0M | +91.1% | 41.0M | +161.0% |
| Net income | 116.0M | 74.0M | +56.8% | 67.0M | +73.1% |
| EPS | 0.65 | 0.42 | +54.8% | 0.37 | +75.7% |
| P/E today 131.5 | 85.5 | 53.4 | +32.1 | 116.4 | −30.9 |
Topics
Most discussed now
- Okta made a huge step forward in terms of one of the main standards it has been working on, which is...
- It's also in short term, Okta can solve these problems in a lot of different ways.
- What I said last time around, the average deal size for AI deals being bigger than the average deal size...
- While there's been a lot of talk by other companies about identity security for AI, Okta has generally available products...
- In Q2, new products represented approximately 30% of bookings.
Faded since Q1 2026
- Fading That's the general idea of it is just the line item itself is a pretty large line item at this...
- Fading You have to have a good multilayered defense and Zero Trust so you can defend for multiple ways.
- Fading The reality is if you look at like it wasn't, the AI agent products were not materially didn't materially contribute...
- Fading This these whether it's just core identity, infrastructure for people or for customers, it's like good news and bad news.
Latest announcements
Official filings, newest first.
- Director or officer change · SEC 8-K
- Results of operations · SEC 8-K
- Director or officer change; Shareholder vote results · SEC 8-K
- Results of operations; Regulation FD disclosure · SEC 8-K
- Director or officer change · SEC 8-K
- Director or officer change · SEC 8-K
- Director or officer change · SEC 8-K
- Results of operations; Regulation FD disclosure · SEC 8-K