By George Glover

Okta stock was rising on Wednesday after the identity-security company reported better financial results than expected and raised its forecast of earning for the full year.

Shares climbed 4.3% to $95.49 in premarket trading. Futures tracking the S&P 500 were up 0.1%.

The move higher came after Okta reported adjusted net income of 91 cents a share as revenue climbed 13% from a year earlier to $728 million. The consensus calls among analysts were for earnings of 85 cents a share and sales of $712 million, according to FactSet.

The company raised its forecast of full-year adjusted earnings to between $3.33 and $3.38 a share, from $3.23 to $3.28 a share. The midpoint of that range is well above the $3.29 analysts had been forecasting.

Okta also said Tuesday that it was acquiring Axiom Security, another identity- security platform.

The company said that public-sector contracts, including one from the U.S. Department of Defense, had helped drive up subscription revenue. "The higher guidance reflects less uncertainty related to the macro environment and U.S. federal government contracting," William Blair analyst Jonathan Ho, who rates the stock at Outperform, said in a research note.

Stifel analyst Adam C. Borg called the results a "nice beat and raise," adding that Okta had "unwound some conservatism within guidance." Borg, who rates the stock at Buy with a $130 price target, said the company may use its Oktane user conference next month to outline what it was doing to manage and protect nonhuman identities, including artificial intelligence bots.

As of Tuesday's close, the stock was up 16% this year. The S&P 500 has climbed 9.9% in 2025.

Write to George Glover at george.glover@dowjones.com

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August 27, 2025 08:45 ET (12:45 GMT)

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