Netskope (NASDAQ:NTSK) Issues Earnings Results

Netskope (NASDAQ:NTSK) announced its quarterly earnings data on Wednesday. The company reported ($0.06) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.07) by $0.01, Zacks reports. The firm had revenue of $201.59 million during the quarter. The business’s revenue for the quarter was up 27.8% on a year-over-year basis. Netskope updated its Q2 2027 guidance to -0.070–0.060 EPS and its FY 2027 guidance to -0.180–0.180 EPS.

Here are the key takeaways from Netskope’s conference call:

• Netskope reported a strong Q1, with ARR up 29% year over year to $845 million, revenue up 28% to $202 million, and operating margin improving four points to -14%, all ahead of guidance.
• The company said new logo ARR grew about 60% and customer adoption broadened, with 57% of customers now using four or more products and the number of $100,000+ ARR customers rising 23% year over year.
• Management highlighted rapid momentum in its new AI security suite, saying pipeline growth is the fastest they have ever seen for a new product category and that early beta customers are already converting into deals.
• Netskope raised full-year fiscal 2027 revenue guidance to $879 million-$883 million, citing confidence in demand and expected acceleration in the second half as sales reps finish ramping.
• The company also disclosed a planned CFO transition, with Drew Del Matto intending to retire after the company completes its search for a successor, while remaining in the role during the transition.

Netskope Price Performance

Netskope stock opened at $12.40 on Thursday. Netskope has a 12-month low of $7.66 and a 12-month high of $27.99. The stock has a market cap of $4.96 billion and a P/E ratio of -88.57. The company has a 50-day moving average price of $10.24 and a 200 day moving average price of $13.49. The company has a current ratio of 2.13, a quick ratio of 2.12 and a debt-to-equity ratio of 3.71.

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on the company. Deutsche Bank Aktiengesellschaft decreased their price objective on Netskope from $22.00 to $16.00 and set a “buy” rating on the stock in a report on Thursday, March 12th. Citizens Jmp cut their target price on Netskope from $23.00 to $17.00 and set a “market outperform” rating for the company in a research note on Friday, May 1st. Rosenblatt Securities started coverage on Netskope in a research note on Tuesday, April 14th. They issued a “buy” rating and a $15.00 target price for the company. Wells Fargo & Company raised their target price on Netskope from $13.00 to $14.00 and gave the stock an “overweight” rating in a research note on Thursday, May 21st. Finally, BMO Capital Markets cut their price objective on shares of Netskope from $26.00 to $14.00 and set an “outperform” rating for the company in a research report on Thursday, March 12th. One investment analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $18.05.

Institutional Investors Weigh In On Netskope

Hedge funds and other institutional investors have recently bought and sold shares of the company. Quarry LP acquired a new stake in shares of Netskope during the 3rd quarter worth about $41,000. Triumph Capital Management raised its holdings in Netskope by 380.0% in the 4th quarter. Triumph Capital Management now owns 2,400 shares of the company’s stock valued at $42,000 after buying an additional 1,900 shares during the period. Wells Fargo & Company MN raised its holdings in Netskope by 261.7% in the 4th quarter. Wells Fargo & Company MN now owns 3,617 shares of the company’s stock valued at $63,000 after buying an additional 2,617 shares during the period. Advisors Asset Management Inc. purchased a new stake in Netskope in the 4th quarter valued at about $64,000. Finally, Federation des caisses Desjardins du Quebec raised its holdings in Netskope by 35.3% in the 4th quarter. Federation des caisses Desjardins du Quebec now owns 9,200 shares of the company’s stock valued at $161,000 after buying an additional 2,400 shares during the period.

About Netskope

We are redefining security and networking for the era of cloud and AI. The cloud and AI have completely revolutionized work. We are more dispersed, more productive, and more automated than ever before, and the rate of change is only accelerating. Not since the internet has there been such a transformative tectonic shift. But, with it has come collateral damage-traditional security and networking are now broken. We founded Netskope to address this revolution. We built Netskope One, our unified, cloud-native platform from the ground up to solve the challenge of securing and accelerating the digital interactions of enterprises in this new era.