The quarter cleared both Wall Street and Okta’s own bar. Revenue reached $805 million versus published consensus of roughly $793 million, while non-GAAP diluted EPS was $1.05 versus about $0.97; the prior Q2 company guide had called for $790–794 million of revenue and $0.95–0.97 of EPS.
| Metric | Q2 FY27 actual | Comparison |
|---|---|---|
| Revenue | $805M | $728M prior year; ~$793M consensus |
| Subscription revenue | $793M | $711M prior year |
| Non-GAAP diluted EPS | $1.05 | $0.91 prior year; ~$0.97 consensus |
| cRPO | $2.585B | +14% year over year; prior guide $2.505–2.515B |
| Non-GAAP operating margin | 28% | 28% prior year; 26% prior guide |
| Free cash flow | $227M | $162M prior year; $155–165M prior guide |
| GAAP operating margin | 13% | 6% prior year |
The most important operating signal was backlog acceleration. cRPO grew 14% year over year to $2.585 billion, above the prior company range of $2.505–2.515 billion, while total RPO rose 17% to $4.858 billion. (Financial Highlights)
Profitability beat without a higher non-GAAP margin. Non-GAAP operating income rose to $226 million from $202 million, but margin held at 28%, so the earnings upside came more from revenue execution and below-the-line factors than from incremental operating leverage. GAAP operating margin nevertheless improved to 13% from 6%. (Non-GAAP operating income reconciliation; Income Statement)
Cash generation was materially better than expected. Free cash flow of $227 million substantially exceeded the prior $155–165 million guide, with operating cash flow rising to $234 million from $167 million. That is a meaningful upside to the quarter, although working-capital movements remain part of the cash-flow result. (Free Cash Flow reconciliation; Cash Flow statement)
The net read is a broad beat, not just a headline EPS surprise. Revenue, backlog, adjusted earnings, GAAP profitability and cash flow all landed ahead of the standing setup. The direction was partly anticipated because Okta had already guided to roughly 9% revenue growth and 26% non-GAAP operating margin, but the magnitude—especially cRPO and free cash flow—was better than expected. The supplied filing does not provide updated full-year numerical guidance, so a guidance raise or reaffirmation cannot be scored from this document alone.
Read the original 8-K on SEC EDGAR ↗