On August 27, Okta Inc. rose 20.9% overnight, trading at $162.86 per share. The surge was driven by the company's fiscal year 2027 second-quarter earnings release, which beat market expectations across all key metrics, coupled with a second full-year guidance raise.

Okta now expects full-year fiscal 2027 adjusted EPS of $3.90 to $3.94, compared to the FactSet consensus estimate of $3.85. This marks the second guidance increase within the fiscal year, following a beat-and-raise motion initiated in Q1. Additionally, reports emerged that Palo Alto Networks' CEO had explored acquiring Okta over the past 18 months. While no deal materialized, the development underscores Okta's strategic value in the identity security space.

The results build on strong Q1 momentum, where revenue of $765 million grew 11.2% year-over-year and non-GAAP EPS of $0.91 exceeded estimates. Analysts at Morgan Stanley, RBC Capital Markets, and Oppenheimer had previously highlighted accelerating new product traction and agentic AI-driven identity demand as key growth catalysts heading into the second half.

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