Netskope (NTSK) Q4 2026 earnings summary

Executive summary

• Fiscal 2026 ended with 32% revenue growth to $709M, ARR reached $811M (up 31%), and the company achieved its first full year of positive free cash flow ($12M), driven by strong global execution and robust demand for AI-native security and networking solutions.

• Q4 revenue was $196M (up 32%), with record net new ARR of $57M and Q4 ARR at $811M.

• Multi-product adoption increased, with 56% of customers using four or more products and 27% using six or more.

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

• Recognized as a market leader in SSE and SASE by Gartner and Forrester, with major customer wins across multiple sectors.

Financial highlights

• Q4 revenue: $196M (+32% YoY); FY26 revenue: $709M (+32% YoY); Q4 ARR: $811M (+31% YoY); net new ARR for the year: $193M (+35%).

• Q4 non-GAAP gross margin: 76% (up 5 points YoY); FY26 non-GAAP gross margin: 75%.

• Q4 non-GAAP operating margin: -10% (improved by 5 points YoY); FY26 non-GAAP operating margin: -16% (improved by 18 points YoY).

• Q4 free cash flow: $4M (2% margin); FY26 free cash flow: $12M (2% margin), a $163M improvement over prior year.

• Ended Q4 with $1.2B in cash, equivalents, and marketable securities.

Outlook and guidance

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

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

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

• Continued investments in R&D and sales, especially in AI engineering and go-to-market expansion.