Netskope outlines $870M–$876M fiscal 2027 revenue target as AI-native platform drives product expansion

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• Guidance reflects macroeconomic risk and geopolitical headwinds

  60% confidence

• Netskope has a library of more than 190 proprietary, purpose-built, specialized AI models

  60% confidence

• 56% of Netskope customers were using 4 or more Netskope One products and 27% were using 6 or more products as of end of Q4

  60% confidence

• Netskope views 116% NRR as very strong and NRR does vary quarter-to-quarter

  60% confidence

• Netskope generated $12 million in free cash flow for fiscal year 2026, marking the company's first ever year of positive free cash flow

  60% confidence

• Fiscal 2027 gross margin expected at approximately 77%

  60% confidence

• Netskope achieved its first year of positive free cash flow with $12 million

  60% confidence

• The billings transition provides strong predictability and consistency

  60% confidence

• All new AI products are charged by transaction (prompt and response) rather than seat-based

  60% confidence

• Management expects negative free cash flow of $50 million to $60 million in Q1 due to annual billings transition, returning to positive in the second half of the year

  60% confidence

• Path to sustainable positive free cash flow is not expected to be linear

  60% confidence

• The path to sustainable positive free cash flow is not expected to be linear

  60% confidence

• Netskope has a library of more than 190 proprietary, purpose-built, specialized AI models

  60% confidence

• Most organizations are in the infancy stage with AI, in the first inning, with 90% of AI usage being shadow AI

  60% confidence

• Full fiscal 2027 revenue expected in range of $870 million to $876 million, representing approximately 23% growth at midpoint

  60% confidence

• Most organizations are in the infancy of AI adoption, in the first inning, with 90% of their AI usage being shadow AI

  60% confidence

• Most impact from sales rep investments to operating margin is expected during the first half of the year leading to improving operating margin in the second half

  60% confidence

• Netskope ended the year on a high note with results that exceeded guidance across all key metrics

  60% confidence

• Fiscal 2027 free cash flow margin expected in range of 2% to 4%

  60% confidence

• 116% net retention rate is viewed as very strong, though NRR varies quarter-to-quarter

  60% confidence

• Every conversation I have, people come to us and say they already run all their AI traffic through Netskope

  60% confidence

• Netskope is building sales rep funnel for next year with fully ramped reps coming online in the second half of the year

  60% confidence

• For Q1 fiscal 2027, Netskope expects revenue in the range of $197 million to $199 million, representing growth of approximately 26% at the midpoint

  60% confidence

• Netskope's win rate is over 80% when they get to a proof of concept

  60% confidence

• Netskope delivered operating margin improvement of 18 percentage points while continuing to invest in innovation and go-to-market

  60% confidence

• Geopolitical macro headwinds refer to macroeconomic risk rather than specific geopolitical issues

  60% confidence

• Netskope delivered revenue of $709 million or 32% growth; ARR of $811 million, up 31% year-over-year; net new ARR of $193 million, up 35% versus fiscal 2025; operating margin improvement of 18 percentage points; and generated $12 million in positive free cash flow

  60% confidence

• Netskope's win rate is over 80% if they get to a POC

  60% confidence

• Q1 fiscal 2027 expected to have negative free cash flow of $50 million to $60 million due to annual billings transition

  60% confidence

• The agentic era will expose networks built in public cloud with worse performance

  60% confidence