Okta (OKTA -3.86%) stock closed out this week's trading with a huge gain, rising 23% across the stretch. Meanwhile, the S&P 500 ended the week up 1.1%, and the Nasdaq Composite gained 1.8%.
After the stock market closed on Wednesday, Okta released results for the second quarter of its 2027 fiscal year -- a period that closed July 31. The company reported sales and earnings that beat expectations and also issued encouraging guidance, and its stock also got a boost from excitement surrounding the broader cybersecurity industry.
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Okta served up strong Q2 results and guidance
Okta recorded a non-GAAP (adjusted) profit of $1.05 per share on sales of $805 million last quarter, beating the average analyst estimate's call for adjusted earnings of $0.96 per share on sales of roughly $793 million. The company's revenue was up 10.6% year over year in the quarter, and adjusted earnings per share were up 15.4%.
Okta also said that it expects to record sales between $3.216 billion and $3.226 billion for the year -- essentially in line with the average analyst estimate. Meanwhile, adjusted earnings per share are projected to be between $3.90 and $3.94 -- significantly ahead of the average analyst estimate's call for per-share earnings of $3.84 prior to the release of the report.
NASDAQ: OKTA
Key Data Points
Cybersecurity stocks were hot this week
In addition to strong earnings reports from companies including Okta and CrowdStrike, the broader cybersecurity industry saw a bullish valuation backdrop thanks to concerns about the rising tide of cyberthreats driven by artificial intelligence (AI). On Thursday, a public letter signed by more than tech 100 companies was published that urged businesses, institutions, and politicians to prioritize cybersecurity protections amid expectations that AI will continue to usher in a wider range of increasingly advanced and numerous threats. While the evolution of these threats poses huge challenges, it also suggests a strong demand environment for Okta.
