Okta Q2 FY2027: revenue $805 million, GAAP EPS $0.65
Okta's quarter was a profitability quarter, not a growth quarter: revenue rose 11.0% to $805 million while GAAP operating margin doubled to 13.0% and GAAP EPS came in at $0.65 versus $0.37 a year ago. Read the scorecard top-down — growth, then margins, then guidance — because the Q3 revenue midpoint of $815 million sits below the $833.96 million consensus figure given here, and that gap is the one crack in the story.
1 · Expected vs. Actual
Free preview belowGAAP EPS of $0.65 compares with $0.37 a year ago, while non-GAAP EPS of $1.05 compares with $0.91. GAAP operating income of $107 million was 13.0% of revenue versus 6.0% a year ago, helped by stock-based compensation falling to $114 million from $144 million. The gap between $0.65 and $1.05 is mostly that same stock compensation, so treat non-GAAP as the operating number and GAAP as the accounting one.
Revenue of $805 million was up 11.0% from $728 million a year ago, with subscription revenue of $793 million up 12.0%. Professional services fell to $12 million from $17 million, so all of the growth came from subscriptions. Gross margin of 79.6% versus 76.9% a year earlier shows the mix shift is helping rather than hurting.
For Q3, management guides revenue of $813 million to $817 million (10.0% growth at the midpoint) and non-GAAP EPS of $0.92 to $0.94. The full year is now $3.216 billion to $3.226 billion of revenue, a 26.0% non-GAAP operating margin and $910 million to $930 million of free cash flow. The Q3 revenue midpoint of $815 million is $18.96 million below the $833.96 million next-quarter consensus figure supplied here — the only place in this report where the numbers point the other way.
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Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-11-08
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