Netskope (NTSK) Q4 2026 earnings summary

Executive summary

• Fiscal year 2026 revenue reached $709M, up 32% year-over-year, with ARR at $811M, growing 31% year-over-year.

• Achieved record net new ARR of $57M in Q4 and $193M for the year, with strong global execution and robust demand for AI-native security and networking solutions.

• Achieved first full year of positive free cash flow, generating $12M for FY26 and $4M in Q4.

• Launched several AI-driven products, including Netskope One Agentic Broker, AI Guardrails, AI Gateway, and AI Red Teaming, and introduced the Netskope AI Index.

• Recognized as a market leader in SSE and SASE by Gartner and Forrester.

Financial highlights

• Q4 revenue: $196M, up 32% year-over-year; full year revenue: $709M, up 32%.

• Q4 net new ARR: $57M; full year net new ARR: $193M, up 35% from prior year.

• Gross margin reached 76% in Q4, up 5 percentage points year-over-year; FY26 non-GAAP gross margin: 75%.

• Operating margin improved by 18 percentage points for the year and 5 points in Q4, reaching -10% in Q4 and -16% for FY26.

• Free cash flow for the year: $12M, a $163M improvement year-over-year; Q4 free cash flow: $4M.

Outlook and guidance

• Q1 FY27 revenue expected at $197M-$199M (~26% growth); operating margin -16%; net loss per share $0.06-$0.07.

• Full year FY27 revenue guidance: $870M-$876M (~23% growth); gross margin ~77%; operating margin -10%, improving in the second half.

• Free cash flow margin for FY27 expected at 2%-4%, with negative FCF in Q1 due to annual billings transition, returning to positive in the second half.