Less obsession with numbers, more conversation with investors

President’s Trump’s latest idea to scrap quarterly earnings in favor of semi-annual reports is stirring debate across corporate America.

“I think I’d be OK either way,” Okta (OKTA) CEO Todd McKinnon said on Yahoo Finance’s Opening Bid. “I do like the opportunity to talk to investors every quarter about the business and the future and the vision of what we’re trying to do.”

Still, he added, “I do think sometimes the industry gets too obsessed with the quarterly numbers … from a single quarter.”

For McKinnon, a good balance would involve reporting a little less frequently “but having long-term strategic conversations with investors.”

Okta posted Q2 earnings that beat on its top and bottom lines, fueled in part by global organizations and government agencies. Revenue hit $728 million, topping consensus estimates of $711 million, according to Bloomberg data. Earnings per share came in $0.91, versus $0.84 expected.

The company raised its full-year revenue outlook to between $2.875 billion and $2.885 billion, a 10% to 11% year-over-year increase. However, its Q3 forecast was more cautious: $728 million to $730 million in revenue, or 9% to 10% growth.

Its shares are up 14% year to date, compared to the S&P 500’s (^GSPC) 13% advance.

Trump’s call for eliminating quarterly numbers comes at an awkward time for a company like Okta. It’s still carving out market share against giants like Microsoft (MSFT) and Palo Alto Networks (PANW), which means quarterly execution is exactly what investors want to scrutinize. With the stock trading around $90, well below its pandemic-era high of over $290, patience for long-term promises may be limited.

Analysts are mixed on how much slack investors should cut.

JPMorgan’s Brian Essex struck an optimistic tone. In a research note after meeting with Okta executives, he highlighted record pipeline levels, strong public sector wins, and a push to consolidate the fragmented identity market.

Essex reiterated an Overweight rating and $92.77 price target, but cautioned that closing those deals and translating them into sustained growth remains key.

Evercore ISI analyst Peter Levine called Okta’s quarter “well executed” and flagged its $100 million acquisition of Axiom Security as a potential differentiator in the fledgling AI security market.

He argued the deal bolsters Okta’s private access management capabilities, which could become a “key identity layer” as companies rush to deploy AI agents. His firm issued an Outperform rating with a $130 target price.