Okta Posts Q2 Beat, Analysts Raise Price Targets On Growing Agentic AI Opportunity

Shares of Okta Inc (NASDAQ:OKTA) rallied in early trading on Thursday after the company reported upbeat second-quarter results.

Here are some key analyst takeaways:

• KeyBanc Capital Markets analyst Eric Heath maintained an Overweight rating, lifting the price target from $180 to $190.
• Guggenheim Securities analyst John DiFucci reiterated a Buy rating and raised the price target from $162 to $188.
• DA Davidson analyst Rudy Kessinger reaffirmed a Buy rating and raised the price target from $165 to $190.

Check out other analyst stock ratings.

KeyBanc Capital Markets: Okta reported a strong beat across the board, Heath said in a note. The company’s cRPO (current remaining performance obligation) grew 14% year-on-year to $2.585 billion, exceeding consensus of $2.509 billion and representing the largest beat since the fourth quarter of 2025, he added.

The analyst stated that management attributed the strength to:

• Large enterprises with customers having average contract value (ACV) of over $1 million growing 22% year-on-year
• Partner contribution
• Emerging products, which contributed 30% of bookings

While AI agents are still not "a material contributor," management noted several agentic AI deals, with an average deal size larger than that of traditional deals, he wrote.

Guggenheim Securities: Okta reported "very strong" quarterly results, exceeding all consensus estimates metrics, DiFucci said. New ACV grew more than 50% despite the quarter representing the "most difficult comp of the year," he noted.

Management guided to third-quarter total revenue of $815 million, representing 10% year-on-year growth and coming in 1% above Street expectations, the analyst stated. "Similar to prior quarters, total revenue guidance implies virtually no new ACV is signed in the quarter, a highly unlikely scenario," he further wrote.

DA Davidson: Okta delivered strong results with cRPO growth accelerating to 14% year-on-year from 12% in the previous quarter, Kessinger said. He highlighted that this performance was without any meaningful contribution from AI Agents, even as the company signed several seven-figure deals during the quarter.

Management noted "dozens" of AI Agent deals, including a multi-million-dollar deal with a Fortune 50 healthcare company, the analyst stated. The average deal size for AI Agents is larger than the company’s average deal size, "which is due in part to large enterprise traction" with the product, he further wrote.

OKTA Price Action: Shares of Okta had risen by 25.85% to $169.17 at the time of publication on Thursday.

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