Okta Reports 11% Revenue Growth to $805 Million in Latest Quarter

Okta, Inc. reported significant financial performance in its latest quarterly filing, with total revenue reaching $805 million for the three months ended July 31, 2026, marking an increase of 11% from $728 million in the same period last year. Subscription revenue, which constitutes the bulk of the company's income, rose by 12% to $793 million, up from $711 million. For the first half of the fiscal year, total revenue was $1.57 billion, compared to $1.42 billion in the prior year, reflecting a similar growth trajectory. The company achieved a net income of $116 million for the quarter, a substantial increase from $67 million in the previous year, resulting in a diluted net income per share of $0.65.

In terms of operational metrics, Okta reported a Dollar-Based Net Retention Rate of 107% as of July 31, 2026, indicating strong customer retention and expansion within its existing client base. The number of customers with an annual contract value exceeding $100,000 increased to 5,255, up from 4,945 a year earlier. This growth is attributed to increased user adoption and sales of additional solutions to existing customers. However, professional services revenue declined, reflecting a strategic shift towards leveraging global systems integrators for service delivery.

Strategically, Okta has made notable acquisitions, including the recent purchase of Permiso Security Inc., which is expected to enhance its identity threat detection capabilities. The company also completed the acquisition of Axiom Security Ltd. in September 2025, further broadening its privileged access management offerings. These acquisitions are part of Okta's ongoing strategy to expand its product portfolio and enhance its competitive position in the identity management market.

Financially, Okta's total assets decreased to $9.14 billion as of July 31, 2026, down from $9.71 billion at the beginning of the fiscal year. The company reported a decrease in cash and cash equivalents to $763 million, alongside a reduction in total liabilities to $2.17 billion. The company has also initiated a stock repurchase program, authorizing up to $1 billion in share buybacks, with $555 million remaining available for future repurchases as of the end of July.

Looking ahead, Okta anticipates continued growth driven by its subscription model, although it acknowledges potential challenges from longer sales cycles and macroeconomic conditions. The company remains focused on expanding its international operations and enhancing its product offerings to meet evolving customer needs. As it navigates these dynamics, Okta's management emphasizes the importance of maintaining strong customer relationships and delivering value to sustain its growth trajectory.