Netskope Shares Drop 20% on Soft Q4 Results and Lockup Expiry
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 12 2026
0mins
Should l Buy NTSK?
Source: seekingalpha
- Disappointing Performance: Netskope reported a non-GAAP net loss per share of $0.04 for Q4 2026, an improvement from a $0.23 loss in Q4 2025, yet still falling short of market expectations, leading to a premarket drop of approximately 20% in share price.
- Strong Revenue Growth: Despite the disappointing fourth quarter, Netskope achieved a 32% year-over-year revenue increase for fiscal 2026, totaling $196.3 million, surpassing estimates and demonstrating the company's ongoing growth potential in the cybersecurity sector.
- Cautious Future Outlook: The company anticipates total revenue for fiscal 2027 to be between $870 million and $876 million, aligning with market consensus; however, the impending lockup expiration, with about 390 million shares potentially hitting the market, has impacted investor sentiment.
- Analyst Rating Changes: RBC Capital Markets maintained an Outperform rating on Netskope but lowered the price target from $19 to $14, reflecting a cautious outlook on the company's future growth, particularly in light of the deceleration in annual recurring revenue growth.
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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: 9.490
Low
23.00
Averages
26.40
High
30.00
Current: 9.490
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.
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