Netskope reported strong fiscal 2027 second-quarter results, exceeding revenue and margin guidance as enterprise demand for its cloud-native security platform and new AI-focused product suite continues to accelerate.

Key Points

• Annual recurring revenue (ARR) grew 27% year over year to $899 million, with total revenue reaching $220.5 million.
• The company improved its adjusted operating margin by 11 percentage points year over year to negative 9%.
• Adoption of the Netskope One platform increased, with 59% of customers now utilizing four or more products.
• New AI security tools, including AI Guardrails and Agentic Broker, are seeing significant traction with one-third of the pipeline in proof-of-concept stages.
• Netskope raised its full-year fiscal 2027 revenue guidance to a range of $888 million to $892 million.
• The company reduced its workforce by 5% to reallocate resources toward AI infrastructure and research and development.

Why it Matters

Netskope’s performance highlights a growing enterprise trend of prioritizing secure AI integration without compromising network performance. By successfully linking security and network modernization, the company is positioning itself as a critical partner for organizations navigating the complexities of AI adoption.