Earnings call transcript: Netskope beats Q2 2026 estimates, shares jump 13%

Netskope exceeded Wall Street expectations in its second-quarter earnings, reporting an adjusted loss of 3 cents per share, much smaller than the 7-cent loss analysts anticipated. Revenue for the quarter reached $221 million, surpassing the $214.2 million estimate. The company also upped its full-year revenue guidance and highlighted the growing demand for its AI security products.

Shares surged 13.24% in after-hours trading, jumping from $13.75 to $15.57, indicating that investors welcomed the beat and stronger guidance. Netskope's adjusted loss was narrower than expected, and revenue reached $221 million, a 29% increase year-over-year. Annual recurring revenue climbed 27% to $899 million, with net new annual recurring revenue of $54 million.

Gross margin improved to 77%, while operating margin narrowed to a negative 9%. Management attributes the growth to the expanding demand for AI security solutions and positioning Netskope as a platform provider rather than a point-solution seller.