Cybersecurity firm Okta has raised its annual revenue and profit forecasts, betting on sustained demand for its identity verification tools as enterprises urgently strengthen their defenses against sophisticated, AI-powered cyber attacks. The San Francisco-based company’s shares rose nearly 7% in extended trading following the announcement. This optimistic outlook is driven by the critical need for businesses to protect themselves, as hackers increasingly target user identities to gain access to and steal sensitive corporate data.
Okta’s Chief Operating Officer, Eric Kelleher, emphasized that security remains a top budget priority for companies. “With the increase of threat actor activity… companies are continuing to invest in securing identity as a core requirement,” he told Reuters. Notably, demand is soaring in the public sector, with five of Okta’s top ten deals in the second quarter coming from that segment, including its largest deal with a group within the U.S. Department of Defense.
The company provides essential identity and access management tools, such as single sign-on (SSO), and utilizes artificial intelligence to monitor for and respond to security risks in real time. For its 2026 fiscal year, Okta now expects revenue between $2.88 billion and $2.89 billion, an increase from its previous forecast. It also raised its forecast for annual adjusted profit per share to a range of $3.33 to $3.38.
For the current third quarter, Okta anticipates revenue of $728 million to $730 million, surpassing analysts’ average estimate. This confidence follows a strong second-quarter performance where revenue jumped 13% to $728 million, beating expectations, and adjusted earnings per share of 91 cents significantly exceeded forecasts. The robust results and upgraded guidance signal the company’s strong position in a high-demand market.
