Okta Shares Rally on Upgrade and Strong Q2 Results

San Francisco, Aug. 26, 2025 - Okta, Inc. (NASDAQ: OKTA) saw its stock surge today following a wave of positive analyst coverage and better-than-expected second-quarter financial results.

The trading day began with Okta shares climbing roughly 3% in pre-market trading after Truist Securities upgraded the stock from Hold to Buy, raising its price target to $125 based on anticipated easing of seat-count pressures and momentum in identity governance and privileged access offerings. That bullish sentiment carried into regular hours, with shares trading up modestly before the market close.

After the bell, Okta stock jumped approximately 4% in extended trading amid robust Q2 earnings and guidance that outpaced Wall Street forecasts. The company reported revenue of $728 million, a 13% year-over-year increase driven by subscription sales of $711 million and a 13% rise in current remaining performance obligations to $2.265 billion. Adjusted earnings per share came in at $0.91, beating consensus estimates of $0.84 and marking a 26% increase over the prior year period.

CEO Todd McKinnon highlighted strong enterprise and government adoption of Okta’s unified identity platform, noting that demand for AI-secure identity solutions remains “much better than we anticipated” amid heightened focus on managing non-human identities and GenAI application security.

Analysts have pointed to Okta’s attractive valuation-trading at approximately 4.7x projected 2026 revenue versus 8-10x for SaaS peers-as a potential entry point for growth investors, with the company well-positioned to capitalize on a $20 billion identity and access management market. Following today’s results, consensus targets sit in the $117-$125 range, underscoring optimism about Okta’s medium-term trajectory.