Netskope (NASDAQ:NTSK) Issues FY 2027 Earnings Guidance

Netskope (NASDAQ:NTSK) updated its FY 2027 earnings guidance on Wednesday morning. The company provided EPS guidance of -0.150–0.150 for the period, compared to the consensus EPS estimate of -0.320. The company issued revenue guidance of $888.0 million-$892.0 million, compared to the consensus revenue estimate of $881.0 million. Netskope also updated its Q3 2027 guidance to -0.040–0.030 EPS.

Analysts Set New Price Targets

Several research firms have recently issued reports on NTSK. BTIG Research boosted their price objective on shares of Netskope from $17.00 to $18.00 and gave the stock a “buy” rating in a report on Thursday. JPMorgan Chase & Co. increased their target price on shares of Netskope from $16.00 to $18.00 and gave the company an “overweight” rating in a research note on Thursday. Wells Fargo & Company lifted their target price on Netskope from $13.00 to $17.00 and gave the stock an “overweight” rating in a research report on Monday, August 17th. Morgan Stanley boosted their price target on Netskope from $14.00 to $16.00 and gave the company an “overweight” rating in a research note on Thursday. Finally, Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Netskope in a report on Wednesday, July 8th. 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 stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $19.03.

Netskope Stock Up 4.3%

Shares of NTSK opened at $14.34 on Friday. The company has a market capitalization of $5.79 billion and a P/E ratio of -5.62. Netskope has a one year low of $7.66 and a one year high of $27.99. The business’s 50 day simple moving average is $13.36 and its 200-day simple moving average is $11.29. The company has a debt-to-equity ratio of 4.06, a current ratio of 2.17 and a quick ratio of 2.16.

Netskope (NASDAQ:NTSK) last released its quarterly earnings results on Wednesday, September 2nd. The company reported ($0.03) earnings per share for the quarter, beating analysts’ consensus estimates 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 firm had revenue of $220.54 million during 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 predict that Netskope will post -0.88 EPS for the current fiscal year.

Insiders Place Their Bets

In other Netskope news, Director William J.G. Griffith bought 64,771 shares of the stock in a transaction dated Monday, July 13th. The stock was bought at an average cost of $12.42 per share, for a total transaction of $804,455.82. Following the completion of the purchase, the director owned 916,690 shares in the company, valued at $11,385,289.80. This represents a 7.60% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, major shareholder Iconiq Strategic Partners Viii purchased 64,771 shares of the business’s stock in a transaction that occurred on Monday, July 13th. The stock was acquired 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 directly owned 916,690 shares of the company’s stock, valued at $11,385,289.80. The trade was a 7.60% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. In the last three months, insiders have purchased 1,833,380 shares of company stock valued at $21,960,909 and have sold 3,529,696 shares valued at $33,002,807. 25.52% of the stock is owned by corporate insiders.

Netskope News Roundup

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 Trading of Netskope

Several hedge funds have recently modified their holdings of NTSK. Envestnet Asset Management Inc. acquired a new stake in shares of Netskope in the third quarter valued at approximately $249,000. Legal & General Group Plc acquired a new position in Netskope during the 3rd quarter worth $1,677,000. Franklin Resources Inc. bought a new position in Netskope in the 3rd quarter valued at $17,460,000. Invesco Ltd. bought a new position in Netskope in the 3rd quarter valued at $10,327,000. Finally, Squarepoint Ops LLC acquired a new stake in shares of Netskope in the 3rd quarter valued at $14,774,000.

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.