Okta Inc.'s stock surged 7.83% in pre-market trading on Friday, extending gains from the prior session's after-hours rally.

The sharp move was primarily driven by the company's release of its first-quarter fiscal 2027 results, which handily beat Wall Street expectations. Okta reported adjusted earnings per share of $0.91, surpassing the consensus estimate of $0.85, while revenue of $765 million exceeded the anticipated $752 million. Furthermore, management raised its full-year outlook for both adjusted EPS and revenue, signaling confidence in sustained business momentum.

Adding to the positive sentiment, multiple Wall Street firms raised their price targets on Okta following the earnings report, citing the strong performance and a significant future opportunity in identity management for AI agents, as highlighted by CEO Todd McKinnon.