| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 25 | — | 17.8x | Bottom tier | |
Growth | 75 | 30.4% | 7.1% | Top tier | |
Quality | 41 | -142.9% | 4.5% | Around median | |
Safety | 21 | — | 2.6x | Bottom tier | |
Capital Return | 68 | — | 2.12% | Top tier | |
Momentum | 83 | — | 2.9% | Top tier | |
Sentiment | 63 | 11 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Netskope provides an enterprise cloud security and networking platform that combines more than 25 products within Netskope One and operates through the NewEdge Private Cloud network, which spans more than 120 data centers. The company generates revenue by selling SSE and SASE solutions, data protection, and zero-trust access, alongside an AI security suite that includes Agentic Broker, AI Guardrails, AI Gateway, and AI Command Center; some agent solution pricing is based on the number of transactions, while AgentSkope products use outcome-based pricing.
In fiscal Q2 2027, revenue increased 29% year over year to $220.5 million, and annual recurring revenue reached $899 million, up 27%, while net new annual recurring revenue reached $54 million, up 9%. Adjusted gross margin was 77%, an increase of approximately two percentage points, and adjusted operating margin improved by 11 percentage points to negative 9%; however, EDGAR filings showed a GAAP net loss of $110.8 million and negative earnings per share of $0.27 for the latest reported quarterly period.
Platform usage expanded within the customer base in fiscal Q2 2027; 59% of customers used four or more products, compared with 51% a year earlier, and 41% used five or more products, compared with 35%. The number of customers each generating more than $100,000 in annual recurring revenue also increased 23% to 1,686 customers, and this group accounted for 87% of total annual recurring revenue, while net retention increased to 114% and remaining performance obligations grew 36% to $1.35 billion.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus is “Buy,” with an average target of $18.29 and a range between $16 and $21; the average is approximately 35% below the 52-week range high of $27.99, while the highest target is approximately 25% below that high. No positive price-to-earnings ratio is available because losses persist, so the valuation rests more heavily on revenue and annual recurring revenue growth and margin improvement, balanced against the expected slowdown in fiscal Q3 2027 growth to approximately 24% and the quarterly net loss of $110.8 million reported in EDGAR.
Figures in the text are as of 2026-09-04; the live price is shown at the top of the page.
Revenue increased 29% to $220.5 million, and annual recurring revenue grew 27% to $899 million. Momentum came from SSE and SASE and expanded use of Netskope One, with net retention increasing to 114% and remaining performance obligations reaching $1.35 billion. Revenue also grew 37% in Europe, the Middle East, and Africa, 31% in Asia Pacific and Japan, and 25% in the Americas.
In fiscal Q2 2027, the company closed deals that included AI Guardrails, Agentic Broker, and AI Gateway, including expansions at a global electronics manufacturer and a large auto insurance company. Approximately one-third of the AI security opportunity pipeline had reached or was approaching the proof-of-concept stage as of September 2, 2026. However, management explained that the enterprise purchasing cycle typically takes between 6 and 12 months, meaning these products' contribution remains at an early stage.
The company remains unprofitable under GAAP; EDGAR filings for the latest quarterly period showed a net loss of $110.8 million and negative earnings per share of $0.27. On a twelve-month basis, the net loss was $770.7 million and earnings per share were approximately negative $1.90. Meanwhile, adjusted operating margin in fiscal Q2 2027 improved by 11 percentage points to negative 9%, and management expects a positive free cash flow margin of approximately 2% for the full fiscal 2027.
For fiscal Q3 2027, the company expects revenue of between $227 million and $229 million, representing growth of approximately 24%, and an adjusted operating margin of approximately negative 8%. It raised its fiscal 2027 revenue outlook to a range of between $888 million and $892 million, representing growth of approximately 26%. It also expects an adjusted gross margin of approximately 77%, an adjusted loss per share of $0.15, and a positive free cash flow margin of approximately 2%.
In fiscal Q2 2027, 59% of customers used four or more Netskope One products, compared with 51% a year earlier, and 41% used five or more products, compared with 35%. The number of customers generating more than $100,000 each in annual recurring revenue increased 23% to 1,686 customers. This group accounts for 87% of total annual recurring revenue, while a portfolio of more than 25 products provides additional scope to sell solutions such as Agentic Broker, AI Guardrails, and DataSec Command Center.
The main risks are continued accounting losses and the expected slowdown in revenue growth to approximately 24% in fiscal Q3 2027, compared with 29% growth in the previous quarter. The AI security contribution also depends on converting proof-of-concept trials through a purchasing cycle that takes between 6 and 12 months, in a competitive SASE market with multiple vendors. Additional risks include customers' transition to annual billing, which temporarily defers cash collections, and the expected increase in capital expenditures for the NewEdge network to 4%–5% of fiscal 2027 revenue.
