Netskope (NASDAQ:NTSK) Releases Q3 2027 Earnings Guidance

Netskope (NASDAQ:NTSK) updated its third quarter 2027 earnings guidance on Wednesday. The company provided earnings per share 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.

Analyst Ratings Changes

NTSK has been the topic of several recent research reports. JPMorgan Chase & Co. lifted their target price on shares of Netskope from $14.00 to $16.00 and gave the stock an “overweight” rating in a research report on Wednesday, August 26th. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Netskope in a research note on Wednesday, July 8th. Deutsche Bank Aktiengesellschaft set a $17.00 price target on shares of Netskope in a report on Monday, August 17th. Morgan Stanley reduced their price objective on shares of Netskope from $18.00 to $14.00 and set an “overweight” rating on the stock in a research note on Thursday, June 4th. Finally, KeyCorp raised their target price on Netskope from $16.00 to $17.50 and gave the stock an “overweight” rating in a research report on Friday, August 21st. One analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, Netskope has a consensus rating of “Moderate Buy” and a consensus price target of $17.71.

Netskope Stock Down 2.1%

Shares of NASDAQ NTSK opened at $13.75 on Thursday. The company has a quick ratio of 2.16, a current ratio of 2.17 and a debt-to-equity ratio of 4.06. The firm has a market cap of $5.55 billion and a PE ratio of -68.75. The company’s fifty day simple moving average is $13.27 and its 200 day simple moving average is $11.27. Netskope has a 12-month low of $7.66 and a 12-month high of $27.99.

Netskope (NASDAQ:NTSK) last issued its earnings results on Wednesday, September 2nd. The company reported ($0.03) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.26) by $0.23. The firm 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. As a group, sell-side analysts forecast that Netskope will post -0.88 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Netskope news, major shareholder Lightspeed Venture Partners Se sold 1,313,827 shares of the company’s stock in a transaction on Friday, June 12th. The stock was sold at an average price of $9.19, for a total value of $12,074,070.13. Following the completion of the transaction, the insider owned 336,173 shares in the company, valued at $3,089,429.87. This represents a 79.63% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director William J.G. Griffith bought 610,291 shares of Netskope stock in a transaction dated Wednesday, July 8th. The shares were bought at an average cost of $11.82 per share, with a total value of $7,213,639.62. Following the completion of the transaction, the director directly owned 610,291 shares in the company, valued at approximately $7,213,639.62. This trade represents a ∞ increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Over the last 90 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.

Netskope News Summary

Here are the key news stories impacting Netskope this week:

• Positive Sentiment: Strong quarterly performance: Netskope reported fiscal Q2 revenue of approximately $220.5 million, up 29% year over year, while adjusted EPS was a loss of $0.03 versus the consensus estimate of a $0.26 loss. Annual recurring revenue increased 27% to $899 million, and management said results exceeded guidance across every metric. Netskope Announces Strong Second Quarter Fiscal 2027 Financial Results
• Positive Sentiment: Raised financial outlook: Netskope forecast third-quarter revenue of $227 million to $229 million, above analysts’ $226.6 million estimate, and projected a narrower EPS loss of $0.03 to $0.04. Full-year fiscal 2027 revenue guidance was increased to $888 million-$892 million from a consensus estimate of $881 million, while the expected EPS loss of $0.15 is substantially better than the $0.32 analyst forecast. Netskope Raises Fiscal 2027 Revenue Outlook
• Positive Sentiment: AI and cloud-security demand remain a growth catalyst: Coverage highlights Netskope as a smaller cybersecurity company benefiting from increased enterprise adoption of AI, cloud applications and related security tools. AI Boom Powers Growth in Netskope
• Neutral Sentiment: Analyst sentiment is constructive but not uniformly bullish: Analysts currently assign Netskope an average “Moderate Buy” rating. The improved guidance supports potential estimate upgrades, although the company remains unprofitable and trades with a negative P/E ratio. Netskope Given Moderate Buy Rating
• Negative Sentiment: Profitability remains a concern: Despite beating EPS expectations, Netskope still posted a net loss and continues to guide for negative fiscal-year earnings. After the initial positive reaction to the earnings release, investors may be locking in gains following the stock’s rebound from its 52-week low.

Institutional Investors Weigh In On Netskope

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Quarry LP purchased a new stake in Netskope during the third quarter valued at about $41,000. Triumph Capital Management raised its position 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 during the period. Wells Fargo & Company MN lifted its stake in shares of Netskope by 261.7% during 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 in the last quarter. Advisors Asset Management Inc. purchased a new stake in shares of Netskope during the 4th quarter valued at approximately $64,000. Finally, Federation des caisses Desjardins du Quebec boosted 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 worth $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.