Okta reported second-quarter revenue of $805 million on Wednesday, up 11% from a year ago, beating analyst expectations and sending Okta stock up 20% in extended trading.

Analysts had forecast adjusted earnings of 97 cents per share on $795 million in revenue, according to CNBC ; Okta delivered $1.05 per share instead. On a GAAP basis, the company earned $116 million, or 65 cents per diluted share, up from $67 million, or 37 cents per diluted share, in the same quarter a year earlier.

Subscription revenue grew 12% year over year to $793 million. The subscription backlog, measured as remaining performance obligations, climbed 17% to $4.86 billion, topping the $4.70 billion that analysts had anticipated. The portion expected to convert over the next twelve months reached $2.59 billion, a 14% increase. Free cash flow reached $227 million, compared with $162 million a year earlier.

The company pointed to the rise of AI agents as a central driver of demand. Okta expanded access to its Okta for AI Agents tool to all customers during the quarter, and new products made up 30% of total bookings. Among the quarter's wins, Okta disclosed dozens of AI deals, with one healthcare company signing a multi-million-dollar contract.

"As AI agents transform every layer of technology, every agent needs a trusted identity and clear controls over what it can access and do," Chief Executive Officer Todd McKinnon said in a statement.

Speaking with CNBC, McKinnon described the agentic AI security opportunity as still "very early" and said recent incidents are "catalyzing interest." "Network is the biggest cyber category now, but if you look out five or 10 years, with millions of agents running around, it's definitely going to be identity," he said.

Also on Wednesday, Okta wrapped up its purchase of threat detection startup Permiso Security in a deal worth around $200 million. McKinnon indicated that bolt-on deals of that kind would remain part of the company's strategy going forward. "You'll see us do more of these tuck-in things," McKinnon said. "We're not going to buy some big legacy company just to have more revenue."

The company beat first-quarter expectations earlier this year and cited the same AI agent theme, with McKinnon saying at the time that companies racing to build out agentic AI capabilities were turning to Okta for identity tools. Okta Identity Governance was again singled out as a contributor to results, with Chief Financial Officer Brett Tighe citing its role in driving momentum alongside core workforce and customer identity products.