Shares of Okta Inc. (OKTA) surged 5.84% on Tuesday following the release of the company's impressive second-quarter fiscal 2026 financial results and the announcement of a strategic acquisition. The identity and access management firm showcased strong performance across key metrics, beating analyst expectations and raising its full-year outlook.

For the quarter ended July 31, Okta reported adjusted earnings of $0.91 per share, significantly surpassing the analyst consensus estimate of $0.84. This represents a 26.39% increase from the same period last year. Revenue climbed 13% year-over-year to $728 million, outpacing Wall Street's forecast of $711.8 million. The company's subscription revenue, a crucial indicator of its business health, rose to $711 million.

Buoyed by the strong results, Okta raised its fiscal 2026 guidance. The company now expects full-year revenue between $2.875 billion and $2.885 billion, up from its previous projection of $2.85 billion to $2.86 billion. The adjusted earnings per share forecast was also increased to $3.33-$3.38, compared to the earlier guidance of $3.23-$3.28. For the upcoming third quarter, Okta anticipates revenue of $728-$730 million, exceeding analyst estimates of $722.9 million.

Adding to the positive momentum, Okta announced the acquisition of Axiom Security, an identity-centric privileged access management (PAM) platform. This strategic move is expected to enhance Okta's capabilities in securing sensitive resources, particularly as enterprises increasingly incorporate AI into their operations. The acquisition aligns with Okta's vision of connecting "every identity type" to "every resource or technology," strengthening its position in the growing identity and access management market.

Okta's CEO, Todd McKinnon, attributed the solid performance to "continued strength in new product adoption, the public sector, Auth0 and cash flow." He emphasized the company's role in the AI era, stating, "In the age of AI, Okta's independence and neutrality will continue to give organizations the freedom to innovate securely and on their own terms." This positioning appears to resonate with investors, as the company benefits from the growing demand for identity verification tools in an increasingly AI-driven business landscape.