Okta shares jump 27.7% after earnings beat and AI focus

Shares of identity management company Okta surged in trading on Thursday and Friday following a strong quarterly earnings report that exceeded analyst expectations and highlighted the growing role of artificial intelligence in its business. The stock climbed approximately 27.7 percent, breaking through its previous 52-week high.

For its fiscal first quarter ended April 30, Okta reported revenue of $765 million, an 11 percent increase from the same period last year and above the consensus forecast of $752 million. Adjusted earnings per share were $0.91, surpassing estimates of $0.85. The company also generated $271 million in free cash flow.

A key forward-looking metric, current remaining performance obligations, which represents subscription revenue expected over the next 12 months, grew 12 percent year-over-year to $2.499 billion, outpacing projections. Total remaining performance obligations increased 16 percent to $4.719 billion.

Management raised its full-year financial outlook, now projecting revenue between $3.185 billion and $3.205 billion, representing growth of roughly 9 to 10 percent. The company also guided for adjusted earnings per share of $3.79 to $3.87 and free...