Netskope Raises Revenue Outlook
Netskope reports better-than-expected Q2 results and raises its full-year revenue guidance.
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Key Points
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BTIG analyst Gray Powell raised Netskope's price target to 18 from 17 and maintained a Buy rating after the Q2 results.
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Baird analyst Shrenik Kothari lifted Netskope's target to 20 from 18 and kept an Outperform rating following the quarter.
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Rosenblatt analyst Catharine Trebnick increased her Netskope price target to 19 from 18 and maintained a Buy rating after earnings.
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Analysts emphasized that Netskope's EPS beat came with a narrower-than-expected loss, suggesting improvement driven by cost management and operational efficiency rather than top-line growth alone.
Netskope delivered a stronger-than-expected Q2 with an adjusted loss of 3 cents per share on revenue of $220.541 million, beating analyst estimates for a 7-cent loss and roughly $214 million in sales Benzinga. The cloud security company raised its full-year 2027 revenue guidance to $888 million-$892 million from $879 million-$883 million, signaling momentum in its integrated security and AI platform.
CEO Sanjay Beri positioned Netskope as essential for enterprises adopting AI safely, pointing to durable demand across its platform's security, networking, analytics and AI capabilities. The beat and raised guidance prompted three major analysts to lift price targets, with BTIG, Baird and Rosenblatt all upgrading their stock ratings.
Narrower Losses Drive EPS Beat
Netskope's Q2 win came from tighter cost management rather than explosive sales growth alone Benzinga. The company reported an adjusted loss of just 3 cents per share — narrower than the expected 7-cent loss — while revenue climbed to $220.541 million. This improvement reflects operational efficiency gains as the company scales its platform.
Three Analysts Lift Price Targets on Results
BTIG analyst Gray Powell raised his price target to $18 from $17 and maintained a Buy rating Benzinga. Baird analyst Shrenik Kothari lifted his target to $20 from $18 with an Outperform rating. Rosenblatt analyst Catharine Trebnick increased her target to $19 from $18, keeping a Buy rating. All three credited the narrower-than-expected loss and improved profitability trajectory.
AI Security and Cloud Demand Fuel Growth
Netskope credited sustained demand for its Netskope One platform — which bundles security, networking, analytics and AI — for driving the beat Benzinga. The company noted early traction with AI Security solutions as enterprises scale their AI deployments. Beri emphasized that Netskope sits at the intersection of cloud, AI, networking and security, positioning it to capture a large enterprise opportunity around safe AI adoption.
Raised FY27 Guidance Signals Confidence
The $9 million boost to midpoint revenue guidance — from $881 million to $890 million — reflects management's confidence in its growth trajectory Benzinga. The raise came after a quarter that beat both earnings and sales expectations, backed by product innovation and expanding customer adoption. Analysts noted the raised guidance as a sign of sustainable momentum in cloud security and AI-enabled solutions.
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