Okta Q2 FY27: Record Bookings, AI Security Still Early

Transcript intelligence

What changed

Compared with the prior quarter, bookings momentum strengthened, new products rose from about 25% to about 30% of bookings, and Okta added the Permiso acquisition and IL5 authorization. Management’s AI-agent strategy also advanced from early general availability and partnerships toward Agent Gateway, AI Agents-Core and new pricing models.

Guidance delta

Management maintained FY27 guidance centered on 10–11% revenue growth and improved non-GAAP operating margins.

Key takeaways

• Okta described Q2 FY27 as a record non-Q4 bookings quarter, led by large enterprises and new products.
• New products represented about 30% of bookings, with Identity Governance the leading contributor.
• AI-agent security wins are early but show high-margin deal potential; average AI deal size exceeded the rest of the business.
• Permiso integration and IL5 authorization broaden Okta’s identity-security and federal-market opportunity.
• The company highlighted strong cash flow and a debt-free balance sheet.

Management priorities

• Expand Okta for AI Agents-Core and Agent Gateway.
• Integrate Permiso into Okta’s unified security suite.
• Develop consumption-based and per-user pricing for AI-agent usage.
• Expand the federal pipeline following IL5 authorization.
• Continue building the partner ecosystem and cross-sell across the identity platform.