Netskope Surpasses Expectations, Shares Rise After Hours
Netskope (NTSK) surged over 15% in after-hours trading following better-than-expected Q2 fiscal 2027 results. The cybersecurity firm reported an adjusted loss of just three cents per share on revenue of $220.5 million, well ahead of analyst forecasts for a seven-cent loss and $214 million in sales. Revenue grew by 29% year-over-year, with annual recurring revenue (ARR) rising to $899 million—a 27% increase—highlighting strong customer demand. The company also improved its non-GAAP gross margin to 77%, up from 75% a year ago. Management provided optimistic guidance for Q3 and the full fiscal year, projecting revenue of between $227 million and $229 million with an adjusted loss of three to four cents per share. CEO Sanjay Beri credited growth to demand for Netskope's AI security solutions. Netskope remains in a strong financial position with over $1 billion in cash reserves, supporting continued investment as the company scales toward profitability.
Tickers: $NTSK