The Zhitong Finance App learned that cloud and AI security requirements injected growth momentum into the small and medium-sized cybersecurity company Netskope (NTSK.US), driving its second-quarter results to exceed market expectations. Revenue increased 29% year over year, and losses narrowed year over year. The company also raised its full-year performance guidelines, driving Netskope's stock price to rise by more than 10% in pre-market trading.
Netskope is currently valued at around US$5.7 billion and is gradually positioning itself as a comprehensive platform rather than a single point solution, thus competing head-on with large cybersecurity vendors such as CrowdStrike and Palo Alto Networks. The company, headquartered in Santa Clara, California, helps protect data, cloud applications, networks, and AI systems from cyber threats through its Netskope One platform and NewEdge private cloud network.
Netskope's revenue for the quarter reached US$221 million, up from US$170.8 million in the same period last year, and also exceeded Wall Street's expectations of US$214.2 million. The adjusted loss per share was $0.03, which was narrower than analysts' forecast loss of $0.07 per share. Annual recurring revenue (ARR) increased 27% to $899 million, and remaining performance obligations (RPO) jumped 36% to $1.35 billion. The gross margin also increased to 77% from 75% in the same period last year.
CEO Sanjay Berry said the increase in performance was due to “continuous differentiated organic innovation” and the market demand for the Netskope One platform in the fields of “security, networking, analytics and AI.” The company raised its revenue guidance for fiscal year 2027 to US$888 million to US$892 million. The midpoint of the guidance was higher than analysts' estimate of US$881 million.
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AI is becoming an increasingly important part of the company's strategy. Netskope said that product lines including AI Guardrails, AI Gateway, AI Command Center, and Agentic Broker are receiving increasing customer interest, and some AI security opportunities have already entered the proof-of-concept stage.
Berry pointed out during the performance call that many companies are still unable to fully grasp what AI tools and intelligent agents are being used internally. Management also emphasized that AI products will adopt a pricing model based on transaction volume, while some security products will use a pricing method based on results.
“In the age of AI, security and network modernization are inextricably linked.” Berry said.
Previously, CrowdStrike and Palo Alto Networks have successively released strong growth data, further confirming the resilience of enterprise cybersecurity requirements — while companies accelerate the deployment of AI, they still need to effectively protect increasingly complex digital infrastructure.