Netskope (NASDAQ:NTSK) Shares Gap Up After Earnings Beat

Netskope Inc. (NASDAQ:NTSKGet Free Report) gapped up prior to trading on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $13.75, but opened at $15.51. Netskope shares last traded at $14.1060, with a volume of 3,314,956 shares changing hands.

The company reported ($0.03) earnings per share (EPS) for the quarter, beating the consensus estimate 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.

Key Stories Impacting Netskope

Here are the key news stories impacting Netskope this week:

  • Positive Sentiment: Strong quarterly results: Netskope reported fiscal Q2 revenue of approximately $220.5 million, up 29% year over year, while adjusted EPS of ($0.03) exceeded the consensus estimate of ($0.26). Annual recurring revenue rose 27% to $899 million, and management said results exceeded guidance across every key metric. Netskope fiscal Q2 financial results
  • Positive Sentiment: Raised outlook: Netskope forecast fiscal 2027 revenue of $888 million to $892 million, above the $881 million analyst consensus, and narrowed its expected EPS loss to approximately $0.15 versus the consensus loss estimate of $0.32. Third-quarter revenue guidance of $227 million to $229 million and EPS guidance of ($0.04) to ($0.03) also exceeded analyst expectations. Netskope raises fiscal 2027 outlook
  • Positive Sentiment: Analyst support increased: Rosenblatt raised its price target to $19 and assigned a Buy rating, BTIG lifted its target to $18 with a Buy rating, and Robert W. Baird raised its target to $20 with an Outperform rating. Analysts collectively rate NTSK “Moderate Buy.”
  • Neutral Sentiment: Netskope remains unprofitable, reporting a quarterly loss, but the better-than-expected results and guidance suggest improving operating performance as demand for cloud and AI security grows.

Analysts Set New Price Targets

NTSK has been the topic of a number of recent analyst reports. Royal Bank Of Canada lifted their price objective on shares of Netskope from $18.00 to $20.00 and gave the company an “outperform” rating in a research note on Thursday. Morgan Stanley reissued an “overweight” rating and set a $16.00 target price on shares of Netskope in a research note on Thursday. Robert W. Baird boosted their price target on shares of Netskope from $18.00 to $20.00 and gave the stock an “outperform” rating in a research report on Thursday. Piper Sandler reaffirmed an “overweight” rating and issued a $20.00 price target on shares of Netskope in a research note on Thursday. Finally, JPMorgan Chase & Co. increased their price objective on shares of Netskope from $14.00 to $16.00 and gave the company an “overweight” rating in a report on Wednesday, August 26th. Sixteen investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $18.92.

Check Out Our Latest Research Report on NTSK

Insider Activity

In other news, Director William J.G. Griffith acquired 610,291 shares of the stock in a transaction on Wednesday, July 8th. The shares were purchased at an average cost of $11.82 per share, for a total transaction of $7,213,639.62. Following the transaction, the director owned 610,291 shares in the company, valued at approximately $7,213,639.62. This trade represents a ? increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, major shareholder Iconiq Strategic Partners Viii purchased 610,291 shares of the company’s stock in a transaction that occurred on Wednesday, July 8th. The shares were acquired at an average cost of $11.82 per share, for a total transaction of $7,213,639.62. Following the completion of the transaction, the insider directly owned 610,291 shares of the company’s stock, valued at $7,213,639.62. This trade represents a ? increase in their position. The disclosure for this purchase is available in the SEC filing. Over the last 90 days, insiders bought 1,833,380 shares of company stock worth $21,960,909 and sold 3,529,696 shares worth $33,002,807. Company insiders own 25.52% of the company’s stock.

Institutional Investors Weigh In On Netskope

Institutional investors have recently modified their holdings of the stock. Farther Finance Advisors LLC purchased a new stake in shares of Netskope during the fourth quarter worth $25,000. Quarry LP acquired a new stake in shares of Netskope in the third quarter worth about $41,000. Triumph Capital Management boosted its stake in shares of Netskope by 380.0% during the 4th quarter. Triumph Capital Management now owns 2,400 shares of the company’s stock worth $42,000 after acquiring an additional 1,900 shares in the last quarter. Operose Advisors LLC acquired a new position in shares of Netskope during the 2nd quarter valued at about $56,000. Finally, Wells Fargo & Company MN raised its stake in shares of Netskope by 261.7% in the 4th quarter. Wells Fargo & Company MN now owns 3,617 shares of the company’s stock valued at $63,000 after acquiring an additional 2,617 shares in the last quarter.

Netskope Stock Performance

The company has a market cap of $5.77 billion and a P/E ratio of -71.45. The stock’s 50-day moving average price is $13.27 and its 200 day moving average price is $11.27. The company has a quick ratio of 2.16, a current ratio of 2.17 and a debt-to-equity ratio of 4.06.

About Netskope

(Get Free Report)

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.

Further Reading

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