Netskope (NASDAQ:NTSK) Posts Earnings Results, Beats Expectations By $0.02 EPS

Netskope (NASDAQ:NTSK) released its earnings results on Wednesday. The company reported ($0.04) EPS for the quarter, beating the consensus estimate of ($0.06) by $0.02, FiscalAI reports. The business had revenue of $196.33 million during the quarter. The firm’s revenue for the quarter was up 32.2% compared to the same quarter last year. Netskope updated its Q1 2027 guidance to -0.070–0.060 EPS and its FY 2027 guidance to -0.190–0.190 EPS.

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

• Netskope reported strong FY26 results with 32% revenue growth (Q4 revenue $196M, FY revenue $709M), ARR of $811M (+31% YoY), record net new ARR of $57M in Q4, a 116% net retention rate, and its first full year of positive free cash flow ($12M).
• Management positioned Netskope as an AI-native platform and announced multiple AI products (Agentic Broker, AI Guardrails, AI gateway, autonomous AI agents) plus the Netskope AI Index, arguing these and their proprietary telemetry/190+ models create a competitive data moat.
• The shift to annual billings will pressure near-term cash flow — management expects Q1 FY27 negative free cash flow of $50–$60M and estimates the billing transition will reduce FY27 free cash flow margin by about six percentage points.
• Netskope is driving margin expansion (Q4 gross margin 76%, operating margin improved 5ppt in Q4 and 18ppt for FY26) but is guiding FY27 to slower revenue growth (~23% midpoint to $870–876M) and an operating margin of about -10% while it invests in R&D and sales.
• Go-to-market momentum continues with multi-product adoption rising (56% of customers use ≥4 products), customers with >$100k ARR up 22% to 1,531, notable global wins across verticals, and expanded partner certifications (including AWS AI Security competency).

Netskope Stock Performance

Shares of NASDAQ:NTSK traded up $0.64 during trading on Friday, reaching $10.19. 3,230,809 shares of the stock were exchanged, compared to its average volume of 3,256,352. The company has a 50-day moving average price of $13.34. The firm has a market capitalization of $4.01 billion and a price-to-earnings ratio of -101.35. Netskope has a 12-month low of $8.81 and a 12-month high of $27.99. The company has a debt-to-equity ratio of 5.17, a quick ratio of 2.32 and a current ratio of 2.32.

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on NTSK shares. Royal Bank Of Canada dropped their price objective on shares of Netskope from $19.00 to $14.00 and set an “outperform” rating for the company in a research note on Thursday. TD Cowen lowered their target price on shares of Netskope from $30.00 to $25.00 and set a “buy” rating for the company in a report on Tuesday, February 24th. KeyCorp dropped their price target on shares of Netskope from $17.00 to $15.00 and set an “overweight” rating for the company in a research report on Thursday. Wells Fargo & Company assumed coverage on shares of Netskope in a research note on Tuesday, March 3rd. They set an “overweight” rating and a $13.00 price target on the stock. Finally, Piper Sandler decreased their price target on shares of Netskope from $28.00 to $21.00 and set an “overweight” rating on the stock in a report on Thursday. One investment analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $18.89.

Insider Activity at Netskope

In other Netskope news, CEO Sanjay Beri sold 346,061 shares of the business’s stock in a transaction that occurred on Friday, January 2nd. The shares were sold at an average price of $16.91, for a total transaction of $5,851,891.51. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CRO Raphael Bousquet sold 3,823 shares of Netskope stock in a transaction on Monday, January 12th. The shares were sold at an average price of $16.66, for a total transaction of $63,691.18. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 1,049,721 shares of company stock worth $18,020,279.

Hedge Funds Weigh In On Netskope

A number of institutional investors and hedge funds have recently added to or reduced their stakes in NTSK. ICONIQ Capital LLC bought a new position in shares of Netskope during the third quarter worth about $1,506,261,000. Scge Management L.P. bought a new stake in Netskope in the third quarter valued at about $312,104,000. Vanguard Group Inc. increased its holdings in Netskope by 51.5% in the fourth quarter. Vanguard Group Inc. now owns 5,332,708 shares of the company’s stock valued at $93,536,000 after buying an additional 1,812,857 shares during the last quarter. Massachusetts Financial Services Co. MA raised its stake in Netskope by 11.7% during the fourth quarter. Massachusetts Financial Services Co. MA now owns 3,561,508 shares of the company’s stock valued at $62,469,000 after buying an additional 373,529 shares in the last quarter. Finally, T. Rowe Price Investment Management Inc. lifted its holdings in Netskope by 14.7% during the 4th quarter. T. Rowe Price Investment Management Inc. now owns 3,556,583 shares of the company’s stock worth $62,383,000 after buying an additional 456,321 shares during the last quarter.

More Netskope News

Here are the key news stories impacting Netskope this week:

• Positive Sentiment: Q4 results showed healthy growth — revenue $196.3M (up 32% YoY) and ARR +31% — and the company beat EPS estimates slightly, giving evidence of execution at scale. Netskope Announces Strong Fourth Quarter and Fiscal Year 2026 Financial Results
• Positive Sentiment: Product roadmap: Netskope unveiled “Netskope One AI Security,” positioning the company to monetize AI security demand — a strategic positive for long‑term growth expectations. Netskope Unveils Netskope One AI Security
• Neutral Sentiment: FY‑2027 revenue guide was raised slightly to $870M–$876M (above consensus), while EPS guidance remains a wide, mixed range; the top‑line signal is constructive but the EPS ranges keep near‑term uncertainty elevated. Netskope outlines $870M–$876M fiscal 2027 revenue target
• Neutral Sentiment: Some brokers reaffirmed positive ratings (e.g., Oppenheimer kept an “Outperform”) but with lower price targets — supportive on rating but signaling tempered near‑term upside. Netskope Given Outperform Rating at Oppenheimer
• Negative Sentiment: Broad analyst price‑target cuts landed today (Deutsche Bank, JPMorgan, RBC, BMO, Morgan Stanley, KeyCorp, Mizuho, etc.), lowering perceived near‑term valuation and likely triggering additional selling. Deutsche Bank Lowers Price Target to $16.00
• Negative Sentiment: Market reaction tied to the guidance nuance and AI launch — investors interpreted the Q1 EPS guide slightly below consensus and the EPS ranges as cautious, contributing to the pullback. Netskope Is Down After AI Security Launch And 2027 Guidance Update
• Negative Sentiment: Corporate overhangs: an upcoming lockup expiration and a shareholder‑lawyer solicitation/investigation were reported, creating additional downside risk and potential selling pressure. Netskope slumps as analysts mull ‘softer-than-expected’ Q4, lockup expiring Johnson Fistel Investigating Netskope

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.