Okta reports Q2 results, highlights AI security traction
Okta said Q2 bookings were a record and that it closed dozens of AI deals, including multimillion-dollar agreements, while maintaining a $2.3 billion cash balance.
Okta (NASDAQ: OKTA ) held its second-quarter earnings conference call on Wednesday.
Below is the complete transcript from the call.
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For comprehensive financial data and transcripts, visit Access the full call at Summary Okta Inc reported strong Q2 financials, highlighting record bookings and significant growth in large enterprise customers, with over 600 customers having greater than $1 million in annual contract value.
The company's strategic focus on AI security is gaining traction, with dozens of AI deals closed in Q2, including multimillion-dollar agreements with major firms, although the AI segment is still in its early stages and not yet materially impacting financials.
Okta's partnerships and integrations with leading tech firms like Anthropic, AWS, and Cisco are expanding, positioning the company as a neutral and comprehensive identity security provider for both human and AI agents.
The company reported a healthy balance sheet with $2.3 billion in cash and a significant stock repurchase program, reflecting strong operational profitability and cash flow.
Management expressed optimism about future growth, with guidance for FY27 indicating revenue growth of 10% to 11% and a non-GAAP operating margin of 26%, emphasizing a cautious yet positive outlook.
Full Transcript Todd McKinnon, CEO Activity in real time.
While there's been a lot of talk by other companies about identity security for AI, Okta has generally available products that are already delivering real value for our customers.
Okta's proven leadership in identity uniquely positions us to secure the AI era.
Identity is the primary control plane for securing AI and customers are extending the trusted foundation they already rely on with Okta's neutral, modern, enterprise—grade identity platform to now cover agents.
We continue to build on three unique advantages to help our customers navigate this shift: distribution, product breadth, and neutrality.
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.
Our product breadth was a key driver in securing a multimillion—dollar Okta for AI agents deal with a Fortune 50 healthcare company.
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.
Okta will give them a single control plane to discover, secure, and govern those agents, helping them meet strict HIPAA compliance requirements.
Okta will manage their entire identity fabric including agent governance, privileged access, and identity security, helping to ensure every human, non—human, and agent identity is managed.
Our distribution advantage comes from the reach and trust we've built as the identity system of record for more than 20,000 customers.
We saw it at work with a global business management consulting firm that was racing to put its own AI agents into production.
After considering an in—house build, the firm chose Okta for AI agents for its single control plane for human and non—human identities, faster deployment, and lower cost of ownership.
Okta will carry the agents' identities through every handoff, binding the agents to the original employee's delegation with a verifiable record that can satisfy client and regulator requirements.
Our neutrality was critical to an Okta for AI agents deal with one of the world's largest asset managers, where AI was rolling out faster than their security team could govern.
Thousands of agents from multiple vendors were running in production, creating risks the organization couldn't consistently see or control.
Only Okta's independent and neutral platform could cover their heterogeneous environment from employees and devices to AI agents.
Without vendor lock—in, Okta will provide visibility across all agents and enforce least—privilege access so every agent gets only what it needs.
The common theme across these three wins and the other AI deals we've closed is that customers want to move quickly without compromising on security and control.
Okta for AI agents lets them do both by helping them discover, govern, and protect every agent.
More broadly, the fragmentation of the AI landscape creates significant opportunities for Okta.
As enterprises deploy agents across models, clouds, applications, and infrastructure, they need a neutral identity layer that can secure it all.
That's why we partner with industry leaders including Anthropic, which this quarter named Okta the first identity provider supporting Enterprise Managed Auth for MCP connectors.
Now generally available, Enterprise Managed Auth enables IT teams to centrally authorize and govern how Claude connects to enterprise applications.
We also recently expanded our work with AWS, Cisco, OpenAI, Databricks, and Snowflake, alongside more than 25 new Cross App Access integrations, providing a standardized way to govern how AI agents connect to a growing ecosystem of enterprise applications and resources.
In just a few weeks, we'll talk more about AI security and product innovation at Oktane, our annual customer conference.
We'll bring the market's leading minds together to lay out the industry blueprint, open standards, and new innovations required for building the secure agentic enterprise.
In addition to the keynotes and product demos, we will host a Q&A for analysts and investors.