Netskope (NASDAQ:NTSK) Posts Quarterly Earnings Results, Beats Estimates By $0.01 EPS

Netskope (NASDAQ:NTSK) issued its earnings results on Wednesday. The company reported ($0.06) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.07) by $0.01, Zacks reports. The business had revenue of $201.59 million for the quarter. Netskope’s revenue 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 Stock Performance

NTSK opened at $10.03 on Friday. The firm has a market capitalization of $4.02 billion and a PE ratio of -71.64. Netskope has a twelve month low of $7.66 and a twelve month high of $27.99. The firm’s 50-day moving average price is $10.26 and its 200 day moving average price is $13.42. The company has a current ratio of 2.13, a quick ratio of 2.12 and a debt-to-equity ratio of 3.71.

Hedge Funds Weigh In On Netskope

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

Wall Street Analysts Forecast Growth

NTSK has been the topic of several analyst reports. Royal Bank Of Canada set a $18.00 price target on shares of Netskope in a research report on Thursday. Deutsche Bank Aktiengesellschaft dropped their price target on shares of Netskope from $22.00 to $16.00 and set a “buy” rating on the stock in a research report on Thursday, March 12th. FBN Securities initiated coverage on shares of Netskope in a research report on Wednesday, February 25th. They set an “outperform” rating and a $15.00 price target on the stock. TD Cowen dropped their price target on shares of Netskope from $25.00 to $19.00 and set a “buy” rating on the stock in a research report on Thursday. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Netskope in a research report on Friday, March 27th. One research analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $17.21.

Trending Headlines about Netskope

Here are the key news stories impacting Netskope this week:

• Positive Sentiment: Netskope reported Q1 EPS of -$0.06, slightly better than the -$0.07 consensus, and revenue of $201.6 million rose 27.8% year over year, showing continued top-line momentum. Earnings report reference
• Positive Sentiment: The company also issued Q2 and full-year FY2027 guidance that came in slightly better than Wall Street expectations for revenue and roughly in line to slightly better on EPS, suggesting management remains confident in growth. Results press release
• Neutral Sentiment: Several analysts trimmed price targets but largely kept bullish ratings, with BMO, RBC, BTIG, and Baird all lowering targets while maintaining outperform/buy views, which signals cautious optimism rather than a full sentiment shift. Analyst updates reference
• Neutral Sentiment: Short interest rose 67.1% in May, indicating more traders are betting against the stock and potentially adding to near-term volatility. Short interest article reference
• Negative Sentiment: Despite the earnings beat, investors appeared disappointed by the scale of the recurring revenue outperformance and broader profitability trajectory, which helped trigger the selloff after results. Recurring revenue article reference

Netskope Company Profile

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.