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Results
Okta reports $805 million Q2 revenue and $4.858 billion of remaining performance obligations
Subscription revenue $793 million, up 12%. Remaining performance obligations up 17%; current RPO up 14%. Cash from operations $234 million; free cash flow $227 million. Q3 revenue guided at $813 million to $817 million.
TickerGrove Newsroom · Published 08-27-2026 · Okta, Inc.
Sources
Okta, Inc. Form 8-K, Item 2.02, Date of Report August 26, 2026, accession 0001660134-26-000068, accepted 2026-08-26 16:03:06, and Exhibit 99.1 furnished press release, independently re-read. EDGAR index and investor.okta.com overview compared; figures are from the furnished exhibit.
- Total revenue
- $805 million
- Subscription
- $793 million
- RPO
- $4.858 billion
Q2 FY2027 figures from furnished Exhibit 99.1 to Form 8-K accession 0001660134-26-000068. Remaining performance obligations stay next to, not inside, recognized revenue. GAAP operating income of $107 million stays next to non-GAAP operating income of $226 million. Q3 revenue of $813 million to $817 million is issuer guidance as of August 26, 2026.
Okta Exhibit 99.1, August 26, 2026
TickerGrove
Okta, Inc. (Nasdaq: OKTA) announced financial results for the second quarter ended July 31, 2026, in an August 26, 2026 press release furnished the same day as Exhibit 99.1 to Form 8-K accession 0001660134-26-000068. Total revenue was $805 million, up 11% year over year. Subscription revenue was $793 million, up 12%. Remaining performance obligations, or subscription backlog, were $4.858 billion, up 17%. Current remaining performance obligations, the portion expected to be recognized over the next 12 months, were $2.585 billion, up 14%.
What changed
Non-GAAP operating income was $226 million, or 28% of total revenue, compared with $202 million, also 28% of total revenue, in the second quarter of fiscal 2026. GAAP operating income was $107 million, or 13% of total revenue, compared with $41 million, or 6%, a year earlier. Those are different measures. For the third quarter of fiscal 2027, the company expects total revenue of $813 million to $817 million, representing a growth rate of 10% year over year.
The EDGAR index, the Form 8-K wrapper, and Exhibit 99.1 were re-read independently. Item 2.02 says Okta issued a press release for the fiscal quarter ended July 31, 2026, attached as Exhibit 99.1. The Current Report states that information is not deemed “filed” for purposes of Section 18 of the Exchange Act except as expressly set forth by specific reference. Okta’s investor-relations overview lists the Q2 2027 press release, investor presentation, posted commentary, and webcast; this page uses the furnished exhibit for figures, not the slides or a transcript. The condensed statements of operations print subscription revenue of $793 million and professional services and other of $12 million, totaling $805 million, versus $711 million and $17 million a year earlier.
Net cash provided by operations was $234 million, or 29% of total revenue, compared with $167 million, or 23%, in the second quarter of fiscal 2026. Free cash flow was $227 million, or 28% of total revenue, compared with $162 million, or 22%. The exhibit defines free cash flow as net cash provided by operating activities, less cash used for purchases of property and equipment, net of sales proceeds, and capitalized software. Cash, cash equivalents, and short-term investments were $2.299 billion at July 31, 2026. During the quarter, the company settled the remaining principal amount of the 2026 Notes for $350 million in cash. GAAP net income was $116 million. Non-GAAP net income was $194 million. Brett Tighe, chief financial officer, said: “Our Q2 performance was highlighted by accelerating cRPO, success with our largest customers, and strong profitability and cash flow. Steady momentum from core Okta workforce and customer identity drove ACV acceleration in both businesses. Top-line growth also benefited from strong contributions from our portfolio of new products, led by Okta Identity Governance.”
For the third quarter of fiscal 2027, the company also expects current RPO of $2.590 billion to $2.600 billion, representing a growth rate of 11% to 12% year over year, non-GAAP operating income of $196 million to $200 million, and non-GAAP free cash flow of $175 million to $185 million. For full-year fiscal 2027, Okta now expects total revenue of $3.216 billion to $3.226 billion, representing a growth rate of 10% to 11%. The release says that revenue guidance reflects an approximately one percentage point impact to total revenue growth from accelerating the shift of professional services business to partners, a change expected to create a headwind to professional services revenue. Okta has not reconciled its forward-looking non-GAAP financial measures to the most directly comparable GAAP measures because certain items are out of its control or cannot be reasonably predicted. A live video webcast was scheduled for 2:00 p.m. Pacific Time on August 26, 2026; this page does not invent Q&A. A Form 10-Q for the quarter ended July 31, 2026 is not referenced as filed in this 8-K.
Backlog is not the same object as this quarter’s revenue
Okta printed total revenue of $805 million and remaining performance obligations of $4.858 billion. Revenue is what was recognized in the quarter. Remaining performance obligations are subscription backlog still to be recognized. Current remaining performance obligations of $2.585 billion are the portion expected over the next 12 months.
Keep GAAP $107 million off the non-GAAP $226 million line
Non-GAAP operating income of $226 million, or 28% of total revenue, is not GAAP operating income of $107 million, or 13%. Free cash flow of $227 million is operating cash flow of $234 million minus the exhibit’s property-and-equipment and capitalized-software deductions. The $813 million to $817 million third-quarter revenue range is issuer guidance as of August 26, 2026, not a reported quarter. Do not treat remaining performance obligations as current revenue.
What we do not know
This page does not invent a share-price move, a consensus comparison, or conference-call Q&A. It does not collapse GAAP operating income of $107 million into non-GAAP operating income of $226 million, treat remaining performance obligations as current revenue, or map the approximately one percentage point professional-services headwind into a dollar cut. A Form 10-Q for the quarter ended July 31, 2026 is not referenced as filed. Investor-presentation slides and posted commentary listed on the IR overview are not used as figure sources here.
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Sources & evidence
Primary documents used for this piece. Internal claim-lineage notes stay off this page.
Okta, Inc.
Okta Exhibit 99.1, August 26, 2026
Three months ended July 31, 2026
Okta, Inc.
Form 8-K Item 2.02, Date of Report August 26, 2026
Accession 0001660134-26-000068; accepted 2026-08-26 16:03:06
Okta, Inc.
EDGAR filing index for accession 0001660134-26-000068
Form 8-K; 12 documents; period of report 2026-08-26
Okta, Inc.
Investor-relations overview listing Q2 2027 materials
Compared as a locator; figures taken from Exhibit 99.1
Figures used in this article
Q2 FY2027 figures from furnished Exhibit 99.1 to Form 8-K accession 0001660134-26-000068. Remaining performance obligations stay next to, not inside, recognized revenue. GAAP operating income of $107 million stays next to non-GAAP operating income of $226 million. Q3 revenue of $813 million to $817 million is issuer guidance as of August 26, 2026.
Figure
$805 million
- Entity
- Okta, Inc.
- Period / as-of
- Three months ended July 31, 2026
- Unit / basis
- USD; total revenue vs $728 million a year earlier; +11% year over year
Figure
$793 million
- Entity
- Okta, Inc.
- Period / as-of
- Same quarter
- Unit / basis
- USD; subscription revenue vs $711 million a year earlier; +12% year over year
Figure
$4.858 billion
- Entity
- Okta, Inc.
- Period / as-of
- As of July 31, 2026
- Unit / basis
- USD remaining performance obligations, or subscription backlog; +17% year over year
Figure
$2.585 billion
- Entity
- Okta, Inc.
- Period / as-of
- As of July 31, 2026
- Unit / basis
- USD current remaining performance obligations expected over the next 12 months; +14% year over year
Figure
$234 million
- Entity
- Okta, Inc.
- Period / as-of
- Same quarter
- Unit / basis
- USD net cash provided by operations; 29% of total revenue vs $167 million / 23% a year earlier
Figure
$227 million
- Entity
- Okta, Inc.
- Period / as-of
- Same quarter
- Unit / basis
- USD free cash flow; 28% of total revenue vs $162 million / 22% a year earlier; non-GAAP
Figure
$226 million / 28%
- Entity
- Okta, Inc.
- Period / as-of
- Same quarter
- Unit / basis
- non-GAAP operating income / % of total revenue; vs $202 million / 28% a year earlier
Figure
$107 million / 13%
- Entity
- Okta, Inc.
- Period / as-of
- Same quarter
- Unit / basis
- GAAP operating income / % of total revenue; vs $41 million / 6% a year earlier; not the non-GAAP line
Figure
$116 million
- Entity
- Okta, Inc.
- Period / as-of
- Same quarter
- Unit / basis
- USD GAAP net income vs $67 million a year earlier
Figure
$194 million
- Entity
- Okta, Inc.
- Period / as-of
- Same quarter
- Unit / basis
- USD non-GAAP net income vs $169 million a year earlier
Figure
$12 million
- Entity
- Okta, Inc.
- Period / as-of
- Same quarter
- Unit / basis
- USD professional services and other revenue vs $17 million a year earlier
Figure
$2.299 billion
- Entity
- Okta, Inc.
- Period / as-of
- As of July 31, 2026
- Unit / basis
- USD cash, cash equivalents, and short-term investments
Figure
$350 million
- Entity
- Okta, Inc.
- Period / as-of
- Same quarter
- Unit / basis
- USD cash settlement of remaining principal amount of the 2026 Notes
Figure
$813 million to $817 million
- Entity
- Okta, Inc.
- Period / as-of
- Third quarter of fiscal 2027 management outlook as of August 26, 2026
- Unit / basis
- USD total revenue range; growth rate of 10% year over year
Figure
$2.590 billion to $2.600 billion
- Entity
- Okta, Inc.
- Period / as-of
- Third quarter of fiscal 2027 management outlook as of August 26, 2026
- Unit / basis
- USD current remaining performance obligations; growth rate of 11% to 12% year over year
Figure
$196 million to $200 million
- Entity
- Okta, Inc.
- Period / as-of
- Third quarter of fiscal 2027 management outlook as of August 26, 2026
- Unit / basis
- USD non-GAAP operating income; non-GAAP operating margin 24% to 25%
Figure
$175 million to $185 million
- Entity
- Okta, Inc.
- Period / as-of
- Third quarter of fiscal 2027 management outlook as of August 26, 2026
- Unit / basis
- USD non-GAAP free cash flow; free cash flow margin 21% to 23%
Figure
$3.216 billion to $3.226 billion
- Entity
- Okta, Inc.
- Period / as-of
- Full-year fiscal 2027 management outlook as of August 26, 2026
- Unit / basis
- USD total revenue range; growth rate of 10% to 11% year over year
Figure
approximately one percentage point
- Entity
- Okta, Inc.
- Period / as-of
- Full-year fiscal 2027 revenue guidance as of August 26, 2026
- Unit / basis
- issuer-stated impact to total revenue growth from accelerating the shift of professional services to partners