Netskope (NASDAQ:NTSK) Updates Q3 2027 Earnings Guidance

Netskope (NASDAQ:NTSK) issued an update on its third quarter 2027 earnings guidance on Wednesday morning. The company provided EPS guidance of -0.040–0.030 for the period, compared to the consensus estimate of -0.070. The company issued revenue guidance of $227.0 million-$229.0 million, compared to the consensus revenue estimate of $226.6 million. Netskope also updated its FY 2027 guidance to -0.150–0.150 EPS.

Netskope Price Performance

NASDAQ:NTSK opened at $14.34 on Friday. The stock has a 50 day moving average price of $13.36 and a 200 day moving average price of $11.29. The stock has a market cap of $5.79 billion and a PE ratio of -5.62. The company has a debt-to-equity ratio of 4.06, a quick ratio of 2.16 and a current ratio of 2.17. Netskope has a one year low of $7.66 and a one year high of $27.99.

Netskope (NASDAQ:NTSK) last announced its quarterly earnings results on Wednesday, September 2nd. The company reported ($0.03) EPS for the quarter, beating the consensus estimate of ($0.26) by $0.23. Netskope had a negative return on equity of 81.80% and a negative net margin of 91.84%.The business had revenue of $220.54 million for the quarter. Netskope has set its FY 2027 guidance at -0.150–0.150 EPS and its Q3 2027 guidance at -0.040–0.030 EPS. Equities research analysts expect that Netskope will post -0.88 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

NTSK has been the topic of several analyst reports. Wells Fargo & Company lifted their target price on Netskope from $13.00 to $17.00 and gave the company an “overweight” rating in a research note on Monday, August 17th. Royal Bank Of Canada raised their price objective on shares of Netskope from $18.00 to $20.00 and gave the company an “outperform” rating in a research note on Thursday. Morgan Stanley increased their target price on Netskope from $14.00 to $16.00 and gave the company an “overweight” rating in a report on Thursday. Robert W. Baird lifted their price objective on Netskope from $18.00 to $20.00 and gave the company an “outperform” rating in a research report on Thursday. Finally, JPMorgan Chase & Co. lifted their target price on Netskope from $16.00 to $18.00 and gave the company an “overweight” rating in a report on Thursday. Sixteen analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, Netskope presently has an average rating of “Moderate Buy” and an average price target of $19.03.

Insider Buying and Selling at Netskope

In other Netskope news, major shareholder Iconiq Strategic Partners Viii bought 64,771 shares of the company’s stock in a transaction on Monday, July 13th. The shares were bought at an average cost of $12.42 per share, with a total value of $804,455.82. Following the completion of the acquisition, the insider owned 916,690 shares of the company’s stock, valued at approximately $11,385,289.80. This trade represents a 7.60% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director William J.G. Griffith purchased 64,771 shares of Netskope stock in a transaction dated Monday, July 13th. The stock was acquired at an average price of $12.42 per share, for a total transaction of $804,455.82. Following the completion of the transaction, the director owned 916,690 shares in the company, valued at approximately $11,385,289.80. The trade was a 7.60% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. In the last ninety days, insiders have bought 1,833,380 shares of company stock worth $21,960,909 and have sold 3,529,696 shares worth $33,002,807. Insiders own 25.52% of the company’s stock.

Trending Headlines about Netskope

Here are the key news stories impacting Netskope this week:

• Positive Sentiment: Netskope reported fiscal Q2 revenue of approximately $220.5 million, up 29% year over year and above expectations. Adjusted EPS was a loss of $0.03, substantially better than the $0.26 loss analysts expected. Netskope Announces Strong Second Quarter Fiscal 2027 Financial Results
• Positive Sentiment: Annual recurring revenue rose 27% year over year to $899 million, reinforcing the company’s recurring-revenue growth profile and supporting optimism about its cloud and AI security opportunity. Netskope Positioned to Capture AI Opportunity After Fiscal Q2 Upside, Morgan Stanley Says
• Positive Sentiment: Management raised fiscal 2027 revenue guidance to $888 million-$892 million, above the $881 million consensus estimate. The company also guided to a smaller-than-expected full-year loss and forecast third-quarter revenue of $227 million-$229 million, slightly above expectations. Netskope Raises Fiscal 2027 Revenue Outlook
• Positive Sentiment: JPMorgan, RBC, Baird, Rosenblatt and BTIG all raised their price targets, with targets ranging from $18 to $20 and ratings of Overweight, Outperform or Buy. The upgrades indicate improving sell-side confidence following the earnings beat.
• Positive Sentiment: Zacks upgraded NTSK to Rank #2, or Buy, citing improving earnings prospects. Analysts overall now assign the stock a “Moderate Buy” consensus rating. What Makes Netskope a New Buy Stock
• Neutral Sentiment: Despite the quarterly improvement, Netskope reported a negative net margin of 91.84%, negative return on equity of 81.80% and a debt-to-equity ratio of 4.06, leaving profitability and leverage as important risks for investors.

Institutional Investors Weigh In On Netskope

Several large investors have recently added to or reduced their stakes in NTSK. Quarry LP acquired a new position in shares of Netskope during the third quarter valued at $41,000. Triumph Capital Management grew its holdings in Netskope by 380.0% in the 4th quarter. Triumph Capital Management now owns 2,400 shares of the company’s stock worth $42,000 after buying an additional 1,900 shares in the last quarter. Federation des caisses Desjardins du Quebec increased its holdings in shares of Netskope by 35.3% during the fourth quarter. Federation des caisses Desjardins du Quebec now owns 9,200 shares of the company’s stock valued at $161,000 after purchasing an additional 2,400 shares during the period. Wells Fargo & Company MN lifted its holdings in Netskope by 261.7% in the fourth quarter. Wells Fargo & Company MN now owns 3,617 shares of the company’s stock worth $63,000 after purchasing an additional 2,617 shares during the period. Finally, XTX Topco Ltd lifted its holdings in Netskope by 11.3% in the fourth quarter. XTX Topco Ltd now owns 28,956 shares of the company’s stock worth $508,000 after purchasing an additional 2,950 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.