Shares of Okta Inc. (OKTA) are surging 5.50% in pre-market trading on Wednesday following the company's impressive second-quarter fiscal 2026 financial results, raised full-year outlook, and announcement of a strategic acquisition. The identity and access management firm showcased strong performance across key metrics, beating analyst expectations and bolstering investor confidence.

For the quarter ended July 31, Okta reported adjusted earnings of $0.91 per share, significantly surpassing the analyst consensus estimate of $0.84. 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. Okta's CEO, Todd McKinnon, attributed the solid performance to "continued strength in new product adoption, the public sector, Auth0 and cash flow."

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. With these developments, Okta appears well-positioned to capitalize on the increasing demand for robust identity verification tools in an increasingly AI-driven business landscape.