Netskope reported second-quarter fiscal 2027 revenue of $220.5 million, increasing 29% year over year, while annual recurring revenue increased 27% to $899 million.
The cybersecurity and networking company said it exceeded its guidance across every metric during the quarter.
GAAP gross margin increased to 74% from 72%, while non-GAAP gross margin expanded to 77% from 75%.
Netskope reported a GAAP operating loss of $89.8 million and a non-GAAP operating loss of $19.3 million. Non-GAAP operating margin improved to negative 9% from negative 20% in the prior-year period.
GAAP net loss per share narrowed to $0.27 from $0.84, while non-GAAP net loss per share improved to $0.03 from $0.32.
Netskope ended the quarter with $1.1 billion in cash, cash equivalents and marketable securities.
The company highlighted early adoption of its AI Security offerings and continued introducing products for securing enterprise AI environments. Its NewEdge AI Fast Path technology has demonstrated latency reductions of as much as 90% to popular AI destinations.
For the third quarter, Netskope expects revenue of $227 million to $229 million and a non-GAAP operating margin of approximately negative 8%.
For fiscal 2027, Netskope now expects revenue of $888 million to $892 million, a non-GAAP gross margin of approximately 77% and a free cash flow margin of approximately 2%.
KEY QUOTE:
“We are pleased with our strong second quarter performance, exceeding our guidance across every metric. Our results were driven by continued differentiating organic innovation, and durable customer demand for our Netskope One platform across security, networking, analytics and AI. We are encouraged by early traction with our AI Security solutions, validating that Netskope sits right at the intersection of cloud, AI, networking and security and is becoming part of the essential, adaptive fabric for the modern enterprise to adopt AI safely. With our rapid product innovation, we are well positioned to go after our massive market opportunity.”
Sanjay Beri, CEO of Netskope
