BTIG Names Zscaler and Netskope as Leading Choices in Security and Infrastructure Software Stocks for 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 13 2025
0mins
Source: SeekingAlpha
Top Picks for 2026: BTIG's leading large-cap security software pick is Zscaler, while Netskope is favored among small-and-mid-cap stocks, alongside other names like Snowflake and Datadog.
2025 Performance Review: Despite stable revenue growth, the security and infrastructure software sector underperformed major indices in 2025, with a median return of -0.8% compared to a 22% gain in the Nasdaq.
2026 Growth Outlook: Analysts expect cybersecurity growth to stabilize at around 16% in 2026, with a focus on cloud security and identity solutions, while organizations are likely to continue using existing vendor solutions for AI security.
Observability and Vendor Consolidation: The observability market is expected to benefit from vendor consolidation, with companies like Datadog and Dynatrace positioned well, while Palo Alto's acquisition of Chronosphere could disrupt the market dynamics.
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Analyst Views on NTSK
Wall Street analysts forecast NTSK stock price to rise
11 Analyst Rating
11 Buy
0 Hold
0 Sell
Strong Buy
Current: 11.570
Low
23.00
Averages
26.40
High
30.00
Current: 11.570
Low
23.00
Averages
26.40
High
30.00
About NTSK
Netskope, Inc. is a cybersecurity company that provides security, networking, and analytics solutions to organizations ranging from macro to mid-sized companies. The Company delivers its offerings through a software-as-a-service business model, selling subscriptions that provide customers with access to its platform along with related support services. Its Netskope One platform is a comprehensive solution that integrates security, networking, and analytics products into a single, unified platform. Its products include Security Products, Network Products, and Analytics Products. Security products include Cloud Inline Security, Cloud Access Security Broker, Threat Protection, Next-Gen Secure Web Gateway, Private Access, Enterprise Browser, and others. Networking products include Firewall-as-a-Service, Software-Defined Wide Area Network, Cloud Packet Stream, and others. Analytics products include Advanced Analytics, User and Entity Behavior Analytics, and Digital Experience Management.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Netskope Integrates with Claude Compliance API for Enhanced AI Security
- Integration Innovation: Netskope's announcement of integration with the Claude Compliance API allows organizations to connect Claude Enterprise directly to the enhanced AI security features of the Netskope One platform, achieving comprehensive asset, identity, and activity visibility while enhancing data protection capabilities.
- Accelerated AI Adoption: According to the Netskope AI Index, Anthropic's Claude adoption surged from 56.2% to 94.9% between April 2025 and April 2026, reflecting the urgent demand for AI applications in enterprises, and Netskope's integration will assist customers in rapidly adapting to this trend.
- Real-Time Monitoring Capability: The Claude Compliance API enables organizations to gain programmatic access to Claude activity data in real-time, automatically flagging potential issues and managing data retention, thereby enhancing compliance and security while reducing manual review workloads.
- Comprehensive Governance and Protection: Netskope's integration allows security teams to conduct thorough audits of the Claude environment, applying existing data loss prevention policies to ensure that every file uploaded or generated within Claude is inspected by threat protection engines, thus strengthening the overall security posture.
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Sapphire Ventures Acquires Significant Stake in Netskope
- New Investment Position: Sapphire Ventures initiated a new position in Netskope during Q1 2026 by acquiring 5,672,579 shares valued at $70.40 million, indicating strong confidence in the cybersecurity sector.
- Significant Holding Proportion: Following this transaction, Netskope represented 48.43% of Sapphire Ventures' reportable assets in its 13F filing, becoming its largest holding and reflecting a focus on the company's growth potential.
- Strong Financial Performance: Netskope reported a revenue of $709 million for the fiscal year ending January 31, 2026, marking a 32% year-over-year increase, with gross profit margins rising from 65% to 68%, showcasing robust business growth.
- Increased Price Attractiveness: Despite Netskope's stock hitting a 52-week low of $7.67 in Q1, its price-to-sales ratio has dropped to 3.5 from 14.7 at IPO, indicating that now is an opportune time for investment in the company.
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New York Life Sells Netskope Shares Amid Market Volatility
- Share Sale Details: New York Life Insurance Co sold 338,958 shares of Netskope in Q1 2026, valued at approximately $4.21 million, indicating a potential decline in confidence in the company's future prospects.
- Asset Allocation Shift: This sale reduced Netskope's weight in New York Life's portfolio to 1.79% of its $490.55 million assets under management, reflecting a risk-reduction strategy amid market uncertainties.
- Market Performance Analysis: Since its September IPO, Netskope's shares have plummeted about 52%, and while the latest quarter showed a 32% year-over-year revenue increase to $196.3 million, the outlook for future growth has notably slowed.
- Financial Overview: Netskope reported a total revenue of $709 million with a net loss of $679.39 million; despite achieving positive free cash flow for the first time, the forecasted revenue growth of only 23% for fiscal 2027 raises concerns among investors.
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Mighty Capital Closes $91 Million Fund III, Expanding Institutional LP Base
- Fund Size Expansion: Mighty Capital successfully closed its $91 million Fund III, which was oversubscribed and three times the size of its predecessor, reflecting continued LP confidence in the firm's investment model and performance, likely enhancing its market position.
- Strong Liquidity Performance: Over the past five years, Mighty Capital has delivered liquidity to LPs, with one in three exits resulting in an IPO, indicating the effectiveness of its investment strategy and market recognition.
- Portfolio Highlights: The fund's portfolio includes industry leaders such as Amplitude, Netskope, and Groq, with Groq announcing a $20 billion partnership with NVIDIA, further elevating Mighty Capital's influence in the tech investment space.
- Product Signal Analysis Advantage: Mighty Capital's proprietary Product Alpha Effect™ methodology analyzes product signals to identify potential successful investment opportunities, especially in the AI era where rapid product cycles make this advantage increasingly valuable, expected to drive future investment returns.
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- AES Corporation Stock Rating: Analysts describe AES Corporation's stock as incredibly attractive, stating it is 'ridiculously cheap' and recommending investors consider buying, which could lead to significant returns in the future.
- InterDigital Market Outlook: While InterDigital is viewed primarily as a telecom stock rather than an AI play, analysts express optimism about its performance, suggesting that the recent price drop presents a good opportunity for investors, potentially drawing renewed interest.
- Infleqtion Investment Strategy: Infleqtion's stock has experienced a parabolic rise, with analysts advising investors to take profits at high levels and buy back at lower prices to achieve better investment returns.
- Biogen Upgrade Analysis: Biogen recently received an upgrade from Wells Fargo, with analysts highlighting its potential across multiple revenue streams, including Alzheimer's, suggesting that its future performance merits reevaluation and indicating strong growth prospects.
See More
Palo Alto CEO's First Share Purchase Boosts Market Confidence
- Executive Purchase Signal: Palo Alto Networks CEO Nikesh Arora disclosed his first share purchase since November 2019, acquiring 68,085 shares for approximately $10 million, which was interpreted by the market as a positive signal for the struggling cybersecurity sector, resulting in a 6% increase in the company's stock price.
- Positive Market Reaction: Despite a 15% decline in Palo Alto's stock this year, Arora's purchase boosted investor confidence, leading to a 3% rise in shares of related companies such as Okta, CrowdStrike, and Netskope.
- AI Tool Impact: With Anthropic's introduction of new tools, the cybersecurity industry faces disruption risks from AI technologies; Arora urged industry collaboration in a blog post to address this
See More
Netskope Integrates with Claude Compliance API for Enhanced AI Security
- Integration Innovation: Netskope's announcement of integration with the Claude Compliance API allows organizations to connect Claude Enterprise directly to the enhanced AI security features of the Netskope One platform, achieving comprehensive asset, identity, and activity visibility while enhancing data protection capabilities.
- Accelerated AI Adoption: According to the Netskope AI Index, Anthropic's Claude adoption surged from 56.2% to 94.9% between April 2025 and April 2026, reflecting the urgent demand for AI applications in enterprises, and Netskope's integration will assist customers in rapidly adapting to this trend.
- Real-Time Monitoring Capability: The Claude Compliance API enables organizations to gain programmatic access to Claude activity data in real-time, automatically flagging potential issues and managing data retention, thereby enhancing compliance and security while reducing manual review workloads.
- Comprehensive Governance and Protection: Netskope's integration allows security teams to conduct thorough audits of the Claude environment, applying existing data loss prevention policies to ensure that every file uploaded or generated within Claude is inspected by threat protection engines, thus strengthening the overall security posture.
See More
Sapphire Ventures Acquires Significant Stake in Netskope
- New Investment Position: Sapphire Ventures initiated a new position in Netskope during Q1 2026 by acquiring 5,672,579 shares valued at $70.40 million, indicating strong confidence in the cybersecurity sector.
- Significant Holding Proportion: Following this transaction, Netskope represented 48.43% of Sapphire Ventures' reportable assets in its 13F filing, becoming its largest holding and reflecting a focus on the company's growth potential.
- Strong Financial Performance: Netskope reported a revenue of $709 million for the fiscal year ending January 31, 2026, marking a 32% year-over-year increase, with gross profit margins rising from 65% to 68%, showcasing robust business growth.
- Increased Price Attractiveness: Despite Netskope's stock hitting a 52-week low of $7.67 in Q1, its price-to-sales ratio has dropped to 3.5 from 14.7 at IPO, indicating that now is an opportune time for investment in the company.
See More
New York Life Sells Netskope Shares Amid Market Volatility
- Share Sale Details: New York Life Insurance Co sold 338,958 shares of Netskope in Q1 2026, valued at approximately $4.21 million, indicating a potential decline in confidence in the company's future prospects.
- Asset Allocation Shift: This sale reduced Netskope's weight in New York Life's portfolio to 1.79% of its $490.55 million assets under management, reflecting a risk-reduction strategy amid market uncertainties.
- Market Performance Analysis: Since its September IPO, Netskope's shares have plummeted about 52%, and while the latest quarter showed a 32% year-over-year revenue increase to $196.3 million, the outlook for future growth has notably slowed.
- Financial Overview: Netskope reported a total revenue of $709 million with a net loss of $679.39 million; despite achieving positive free cash flow for the first time, the forecasted revenue growth of only 23% for fiscal 2027 raises concerns among investors.
See More
Mighty Capital Closes $91 Million Fund III, Expanding Institutional LP Base
- Fund Size Expansion: Mighty Capital successfully closed its $91 million Fund III, which was oversubscribed and three times the size of its predecessor, reflecting continued LP confidence in the firm's investment model and performance, likely enhancing its market position.
- Strong Liquidity Performance: Over the past five years, Mighty Capital has delivered liquidity to LPs, with one in three exits resulting in an IPO, indicating the effectiveness of its investment strategy and market recognition.
- Portfolio Highlights: The fund's portfolio includes industry leaders such as Amplitude, Netskope, and Groq, with Groq announcing a $20 billion partnership with NVIDIA, further elevating Mighty Capital's influence in the tech investment space.
- Product Signal Analysis Advantage: Mighty Capital's proprietary Product Alpha Effect™ methodology analyzes product signals to identify potential successful investment opportunities, especially in the AI era where rapid product cycles make this advantage increasingly valuable, expected to drive future investment returns.
See More
Stock Performance Analysis of Multiple Companies
- AES Corporation Stock Rating: Analysts describe AES Corporation's stock as incredibly attractive, stating it is 'ridiculously cheap' and recommending investors consider buying, which could lead to significant returns in the future.
- InterDigital Market Outlook: While InterDigital is viewed primarily as a telecom stock rather than an AI play, analysts express optimism about its performance, suggesting that the recent price drop presents a good opportunity for investors, potentially drawing renewed interest.
- Infleqtion Investment Strategy: Infleqtion's stock has experienced a parabolic rise, with analysts advising investors to take profits at high levels and buy back at lower prices to achieve better investment returns.
- Biogen Upgrade Analysis: Biogen recently received an upgrade from Wells Fargo, with analysts highlighting its potential across multiple revenue streams, including Alzheimer's, suggesting that its future performance merits reevaluation and indicating strong growth prospects.
See More
Palo Alto CEO's First Share Purchase Boosts Market Confidence
- Executive Purchase Signal: Palo Alto Networks CEO Nikesh Arora disclosed his first share purchase since November 2019, acquiring 68,085 shares for approximately $10 million, which was interpreted by the market as a positive signal for the struggling cybersecurity sector, resulting in a 6% increase in the company's stock price.
- Positive Market Reaction: Despite a 15% decline in Palo Alto's stock this year, Arora's purchase boosted investor confidence, leading to a 3% rise in shares of related companies such as Okta, CrowdStrike, and Netskope.
- AI Tool Impact: With Anthropic's introduction of new tools, the cybersecurity industry faces disruption risks from AI technologies; Arora urged industry collaboration in a blog post to address this
See More
