Okta (OKTA) Grew Remaining Performance Obligations 17% While Revenue Rose 11%. Is the Platform Reaccelerating?

Okta reported a 11% year-over-year revenue increase to $805 million in the second quarter of 2027, surpassing analyst estimates of $793 million. Adjusted earnings per share climbed 15% to $1.05. More telling was the 17% growth in remaining performance obligations (RPO), amounting to $4.858 billion. This indicates a faster increase in contracted business compared to recognized revenue growth.

RPO growth accelerated from the previous quarter, when it rose 16%. The overall contracted subscription backlog is expanding faster than recognized revenue, though RPO can be influenced by contract duration and deal timing. New product offerings accounted for about 30% of second-quarter bookings, up from roughly 25% in Q1. Growth in contracts with at least $1 million in annual contract value increased by 22% to 605 customers, representing over $1 billion in aggregate annual contract value.

Okta is expanding its AI-agent capabilities, which could drive further growth, but the category remains small compared to overall revenue. The company expects third-quarter contracted revenue between $2.590 billion and $2.600 billion, a slight slowdown from the 14% growth in Q2. Despite this, Okta raised its full-year revenue forecast to $3.216 billion to $3.226 billion and non-GAAP free cash flow to $910 million to $930 million.

Insider Monkey data showed 58 hedge funds holding Okta shares at the end of Q2 2026, up from 49 funds three months prior. While Okta is displaying a broader recovery in contracted backlog, GAAP profitability, and free cash flow, the evidence for sustained platform reacceleration is not conclusive. The article suggests that maintaining current growth rates and exploring AI-agent security opportunities are the most promising aspects of the recovery.