Okta (OKTA) reported solid fiscal Q2 results on accelerating subscription revenue growth, Oppenheimer said in a note Tuesday.

The growth was driven by strength across workforce, customer, governance, new products, and the public sector, with multiple deals from the Department of Defense and state agencies among the top in-quarter deals.

The brokerage sees the company's broadening portfolio, evolving go-to-market motion, and stable macro backdrop as supportive, noting that management's raised fiscal 2026 guidance reflects confidence that sales momentum will continue.

Oppenheimer cautioned that future beats could moderate due to the removal of conservatism around federal and macro assumptions, and that Q3 guidance implies slight deceleration in subscription revenue growth.

Okta's planned acquisition of Axiom Security is expected to integrate with its existing Privileged Access product and is immaterial to guidance, according to the note.

Oppenheimer maintained its outperform rating and $120 price target on the company's stock.

Okta shares were up 5% in recent Wednesday trading.

Price: 96.10, Change: +4.54, Percent Change: +4.96