SailPoint, Inc. (SAIL - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended April 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The earnings report, which is expected to be released on June 9, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis company is expected to post quarterly earnings of $0.04 per share in its upcoming report, which represents a year-over-year change of +300%.
Revenues are expected to be $276.25 million, up 19.9% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for SailPoint, Inc. ?For SailPoint, Inc. , the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -5.88%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that SailPoint, Inc. will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that SailPoint, Inc. would post earnings of $0.08 per share when it actually produced earnings of $0.08, delivering no surprise.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
SailPoint, Inc. doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry PlayerDocuSign (DOCU - Free Report) , another stock in the Zacks Internet - Software industry, is expected to report earnings per share of $1 for the quarter ended April 2026. This estimate points to a year-over-year change of +11.1%. Revenues for the quarter are expected to be $824.75 million, up 8% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for DocuSign has remained unchanged. Nevertheless, the company now has an Earnings ESP of -2.00%, reflecting a lower Most Accurate Estimate.
This Earnings ESP, combined with its Zacks Rank #2 (Buy), makes it difficult to conclusively predict that DocuSign will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
The upcoming report from SailPoint, Inc. (SAIL - Free Report) is expected to reveal quarterly earnings of $0.04 per share, indicating an increase of 300% compared to the year-ago period. Analysts forecast revenues of $276.25 million, representing an increase of 19.9% year over year.
The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
With that in mind, let's delve into the average projections of some SailPoint, Inc. metrics that are commonly tracked and projected by analysts on Wall Street.
Analysts expect 'Revenue- Services and other' to come in at $13.75 million. The estimate points to a change of -9.2% from the year-ago quarter.
Analysts predict that the 'Revenue- Subscription' will reach $262.29 million. The estimate suggests a change of +21.8% year over year.
The consensus among analysts is that 'Revenue- Subscription- Other subscription services' will reach $7.95 million. The estimate points to a change of +30.8% from the year-ago quarter.
The combined assessment of analysts suggests that 'Revenue- Subscription- Term subscriptions' will likely reach $44.35 million. The estimate indicates a year-over-year change of +10.8%.
Based on the collective assessment of analysts, 'Revenue- Subscription- SaaS' should arrive at $174.07 million. The estimate indicates a change of +32.1% from the prior-year quarter.
It is projected by analysts that the 'Revenue- Subscription- Maintenance and support' will reach $36.02 million. The estimate indicates a year-over-year change of -3.7%.
View all Key Company Metrics for SailPoint, Inc. here>>>
Shares of SailPoint, Inc. have experienced a change of +58.2% in the past month compared to the +4.6% move of the Zacks S&P 500 composite. With a Zacks Rank #3 (Hold), SAIL is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Investors will scrutinize whether Oracle stays committed to the heavy AI-related capital spending behind its half-trillion-dollar backlog, and how Adobe plans to answer the rising threat from generative AI — its stock is down nearly 30% year-to-date, echoing a similar slide in 2025.
But the pair is not where the options market sees the biggest moves.
Eight other stocks with market caps above $2 billion are set for sharp post-earnings reactions, according to Benzinga Pro data, with implied swings ranging from 8.62% to 18.24%.
Implied moves measure the size of the single-session swing, up or down, that the options market expects based on at-the-money straddle pricing ahead of each earnings date. A higher reading means traders are paying up for protection or positioning into a binary result.
Here is the full ranking, from the smallest expected move to the largest.
10. Academy Sports and Outdoors, Inc. | Mkt Cap: $3.37B | Implied Move: 8.62% Academy Sports and Outdoors, Inc. (NASDAQ:ASO) reports on Tuesday, June 9, before the market opens, with first-quarter fiscal 2026 results.
Analysts expect $0.91 in earnings per share on revenue of $1.44 billion, implying year-over-year earnings growth around 21% and a top line up roughly 7% for the sporting-goods and outdoor retailer.
The 8.62% implied move is the smallest on this week’s list, about $4.46 a share, equating to roughly $291 million of market value at stake. Academy’s print is an early read on how the value-focused discretionary shopper is holding up as new-store growth continues across the South.
The stock is up about 3% year-to-date near $52, one of the steadier names on the list.
9. Adobe Inc. | Mkt Cap: $101.12B | Implied Move: 8.80%Adobe Inc. (NASDAQ:ADBE) reports second-quarter fiscal 2026 results on Thursday, June 11, after the close.
The Street is looking for $5.82 per share on revenue of $6.46 billion, with earnings climbing roughly 15% and revenue up about 10% year-over-year.
The 8.80% implied move is the second-smallest in percentage terms but, against Adobe’s size, the second-largest dollar exposure on the list — roughly $8.9 billion of market value on a single session.
That gap is the whole Adobe debate: the business still throws off software-like cash, while the stock trades as if generative AI will permanently lower the value of its creative bundle.
Adobe is down about 29% year-to-date near $257, echoing a similar slide in 2025, though it bounced 6% to 8% in early June as money rotated back into beaten-down software.
8. Core & Main, Inc. | Mkt Cap: $9.80B | Implied Move: 11.04%Core & Main, Inc. (NYSE:CNM) reports first-quarter fiscal 2026 results on Wednesday, June 10, before the market opens.
Consensus calls for $0.67 per share on revenue of $1.91 billion, roughly flat with the year-ago quarter.
An 11.04% implied move, about $5.78 a share, puts roughly $1.1 billion of market value in play.
Core & Main distributes pipes, valves, hydrants and storm-drainage products to municipalities and contractors, and just logged its 16th consecutive year of sales growth — making this print a clean read on U.S. water and replacement-infrastructure spending.
The stock is essentially flat year-to-date near $52, supported by an ongoing buyback and bolt-on acquisitions.
7. Oracle Corp. | Mkt Cap: $631.21B | Implied Move: 11.22% Oracle Corp. (NYSE:ORCL) reports fourth-quarter fiscal 2026 results on Wednesday, June 10, after the close — the most consequential print of the week.
Analysts model $1.96 per share on revenue of $19.10 billion, with earnings up about 15% and revenue up roughly 20% year-over-year.
The 11.22% implied move against Oracle’s $631 billion market cap dwarfs everything else on the list — marking a staggering $71 billion of market value swinging on a single session.
The number that matters is the backlog: remaining performance obligations hit $553 billion last quarter, up 325% year-over-year, as Oracle signed long-dated AI-capacity deals and reframed itself as something closer to an AI real-estate landlord.
With capital spending guided near $50 billion, the June 10 test is whether that backlog is converting into delivered capacity, revenue and cash, not just bigger commitments.
Oracle trades near $212, up about 12% year-to-date and roughly 16% over the past month into the print.
The market already believes the AI demand is there. The question is whether Oracle can build fast enough to serve it without overborrowing.
6. Chewy, Inc. | Mkt Cap: $8.49B | Implied Move: 11.31%Chewy, Inc. (NYSE:CHWY) delivers first-quarter fiscal 2026 numbers on Wednesday, June 10, before the bell.
The Street is looking for $0.28 per share on revenue of $3.37 billion, with earnings up about 22% and the top line up roughly 8% year-over-year.
Chewy is one of 2026’s hardest-hit consumer names, down about 38% year-to-date to near $21 and trading close to a 52-week low as softer pet-category spending bites.
The company is pushing deeper into veterinary care with a planned acquisition of Modern Animal, and autoship now drives about 84% of sales — the recurring-revenue engine investors will watch for signs the consumer is pulling back.
5. Uranium Energy Corp. | Mkt Cap: $6.39B | Implied Move: 11.72%Uranium Energy Corp. (NYSE:UEC) reports fiscal third-quarter 2026 results on Tuesday, June 9, before the market opens.
Analysts model a loss of $0.05 per share on revenue of just $4.25 million.
The uranium miner has become a favored proxy for the nuclear-power revival, as AI data centers send hyperscalers hunting for reliable round-the-clock electricity.
The print itself rarely moves on earnings — it moves on production ramp, contracting and the spot uranium price.
The stock is up about 11% year-to-date, near $14.
4. United Natural Foods, Inc. | Mkt Cap: $3.41B | Implied Move: 12.68%United Natural Foods, Inc. (NYSE:UNFI) reports fiscal third-quarter 2026 results on Tuesday, June 9, before the market opens.
Forecasters peg earnings at $0.78 per share on revenue of $7.80 billion for the grocery distributor, the primary supplier to Whole Foods Market — earnings are seen rising about 75% year-over-year, even as revenue slips roughly 3%, the margin story in a single line.
This print laps the cyberattack that disrupted United Natural Foods’ systems in June 2025, setting up an easy year-over-year comparison, while management has been deleveraging ahead of schedule and exiting low-margin business.
With full-year net sales guided to $31.6 billion to $32.0 billion, the question is whether the margin gains can stick.
Quietly, it has been the best performer on this week’s list, up about 66% year-to-date as it recovered from the cyberattack and rebuilt its balance sheet.
3. RH | Mkt Cap: $2.80B | Implied Move: 14.75% RH (NYSE:RH), the luxury home-furnishings retailer formerly known as Restoration Hardware, reports first-quarter fiscal 2026 results on Thursday, June 11, after the close.
Benzinga Pro data show a consensus loss of $2.12 per share on revenue of $793.05 million — a swing into the red from a small profit a year ago, as tariffs on Asian-sourced furniture and a weak high-end housing market squeeze margins.
The 14.75% implied move puts around $413 million of market value at stake.
RH tumbled to a six-year low after its prior report and has absorbed a string of price-target cuts even as it pushes an aggressive international expansion with new galleries in Milan, Paris and London.
The stock is down about 19% year-to-date and remains one of the market’s clearest bets on whether even wealthy households are pulling back.
2. SailPoint, Inc. | Mkt Cap: $10.32B | Implied Move: 17.71% SailPoint, Inc. (NASDAQ:SAIL) reports first-quarter fiscal 2027 results on Tuesday, June 9, before the market opens.
Analysts model $0.04 per share on revenue of $276.02 million, with revenue up roughly 20% year-over-year and earnings swinging sharply higher off a small base.
The 17.71% implied move translates to roughly $1.8 billion of market value on the line. SailPoint, the identity-security vendor taken private by Thoma Bravo in 2022 and re-listed at $23 in early 2025, surpassed $1 billion in annual recurring revenue last quarter.
Its pitch is timely: as AI agents proliferate inside enterprises, every one of them becomes a new identity to govern — a tailwind it is racing to monetize against Okta and CyberArk.
The stock is down about 9% year-to-date near $18, still below its re-IPO price.
1. Navan, Inc. | Mkt Cap: $5.45B | Implied Move: 18.24%Navan, Inc. (NASDAQ:NAVN) tops the list with first-quarter fiscal 2027 results due Wednesday, June 10, after the close — only its third quarterly report since its October 2025 IPO.
The Street is modeling a breakeven quarter, a loss of roughly a penny per share, on revenue of $205.27 million.
Options are pricing an 18.24% swing — the largest implied move of the week, about $3.87 a share — translating to roughly $994 million of market value at potential swing on a single session.
Navan runs an AI-powered corporate travel and expense platform, and its stock has been a rollercoaster: it was priced at $25, sank as low as the $10 range, and has since rebuilt to near $20, with TD Cowen lifting its target to $28 last week.
That round trip is exactly why the options market is bracing — a recent IPO still finding its footing, heading into a print where the guidance, not the quarter, sets the next move.
June 09, 2026 07:00 ET | Source: SailPoint Technologies, Inc.
AUSTIN, Texas, June 09, 2026 (GLOBE NEWSWIRE) -- SailPoint, Inc. (Nasdaq: SAIL), a leader in enterprise identity security, today announced financial results for its fiscal first quarter ended April 30, 2026.
The company’s earnings release and presentation can be accessed on the quarterly results section of SailPoint’s investor relations website. SailPoint will host a conference call today at 8:30 a.m. Eastern Time to discuss the results and outlook, which is accessible here.
About SailPoint
At SailPoint (Nasdaq: SAIL), we believe enterprise security must start with identity at the foundation. Today’s enterprise runs on a diverse workforce of not just human but also digital identities—and securing them all is critical. Through the lens of identity, SailPoint empowers organizations to seamlessly manage and secure access to applications and data at speed and scale. Our unified, intelligent, and extensible platform delivers identity-first security, helping enterprises defend against dynamic threats while driving productivity and transformation. Trusted by many of the world’s most complex organizations, SailPoint secures the modern enterprise.
U.S. stock futures are pointed higher Tuesday morning, as chip stocks look ready to extend their rebound, while easing oil prices also lift investor sentiment. Futures on the Dow Jones Industrial Average Index (DJIA) were up more than 150 points at last look, with the S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) also trading in positive territory ahead of the open. Crude prices retreated after President Donald Trump said a U.S.-Iran agreement could be reached within days, raising hopes of reduced tensions in the Middle East.
Continue reading for more on today's market, including:
Don't overlook these two key S&P 500 support levels per Senior V.P. of Research Todd Salamone. Adobe stock settles near eight-year lows before earnings. Plus, retailer attempts another breakout, cybersecurity name brushing off earnings, and plummeting vacation stock.
5 Things You Need to Know Today The Cboe Options Exchange saw more than 7 million call contracts and 6.7 million put contracts traded on Monday. The single-session equity put/call ratio fell to 0.97, while the 21-day moving average rose to 0.59. J.M. Smucker stock added 3.5% premarket after the packaged foods maker delivered fourth-quarter earnings that surpassed Wall Street forecasts. SJM is looking to attempt another breakout beyond the $105 ceiling, which has rejected three other attempts in the last month. Still, the stock is a chip shot from its year-to-date breakeven SailPoint (NASDAQ:SAIL) sank over 12% before the bell as investors focused on weak full-year guidance despite stronger-than-anticipated quarterly results. Shares have been on a downtrend since being rejected at the $20 level, though the $17.50 floor is looking to collapse. Heading into today, the stock carries an impressive 44% gain for the last month but today's anticipated losses will chip that away. Shares of Vail Resorts Inc (NYSE:MTN) are plunging 5% before the opening bell, sinking after the company shared a fiscal third-quarter earnings miss. Should these losses hold, MTN will slip back below its year-to-date breakeven mark.
investors will be eyeing key financial reports later this week.
Asian Markets Stabilize After Selloff Asian markets finished mostly higher today, finally shaking off the tech rout. The South Korean Kospi jumped 8.2% after yesterday’s nosedive and trading halt, while Japan’s Nikkei rose 2.2%, and China’s Shanghai Composite tacked on 1.3%. Hong Kong’s Hang Seng was the only loser, shedding 0.4%.
European markets are mixed. At last glance, London’s FTSE 100 was down 0.2%, while the French CAC 40 and German DAX rise 0.8% and 0.5%, respectively. German exports rose 0.9% in April, above estimates of 0.5%.
SailPoint, Inc. (SAIL - Free Report) came out with quarterly earnings of $0.05 per share, beating the Zacks Consensus Estimate of $0.04 per share. This compares to earnings of $0.01 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +17.65%. A quarter ago, it was expected that this company would post earnings of $0.08 per share when it actually produced earnings of $0.08, delivering no surprise.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
SailPoint, Inc. , which belongs to the Zacks Internet - Software industry, posted revenues of $280.14 million for the quarter ended April 2026, surpassing the Zacks Consensus Estimate by 1.41%. This compares to year-ago revenues of $230.47 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
SailPoint, Inc. shares have lost about 12.6% since the beginning of the year versus the S&P 500's gain of 8.2%.
What's Next for SailPoint, Inc. ?While SailPoint, Inc. has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for SailPoint, Inc. was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.08 on $310.79 million in revenues for the coming quarter and $0.32 on $1.27 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 35% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Paychex (PAYX - Free Report) , another stock in the same industry, has yet to report results for the quarter ended May 2026.
This payroll processor and human-resources services provider is expected to post quarterly earnings of $1.32 per share in its upcoming report, which represents a year-over-year change of +10.9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Paychex's revenues are expected to be $1.6 billion, up 12.4% from the year-ago quarter.
SailPoint, Inc. (SAIL - Free Report) reported $280.14 million in revenue for the quarter ended April 2026, representing a year-over-year increase of 21.6%. EPS of $0.05 for the same period compares to $0.01 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $276.25 million, representing a surprise of +1.41%. The company delivered an EPS surprise of +17.65%, with the consensus EPS estimate being $0.04.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how SailPoint, Inc. performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
SaaS Annual Recurring Revenue: $781 million compared to the $774.84 million average estimate based on three analysts.Annual Recurring Revenue: $1.16 billion versus the three-analyst average estimate of $1.16 billion.Revenue- Services and other: $14.32 million compared to the $13.75 million average estimate based on four analysts. The reported number represents a change of -5.4% year over year.Revenue- Subscription: $265.82 million compared to the $262.29 million average estimate based on four analysts. The reported number represents a change of +23.5% year over year.Revenue- Subscription- Other subscription services: $8.86 million versus $7.95 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +45.8% change.Revenue- Subscription- Term subscriptions: $43.92 million versus the three-analyst average estimate of $44.35 million. The reported number represents a year-over-year change of +9.7%.Revenue- Subscription- SaaS: $178.48 million versus $174.07 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +35.4% change.Revenue- Subscription- Maintenance and support: $34.56 million compared to the $36.02 million average estimate based on three analysts. The reported number represents a change of -7.6% year over year.Gross profit- Subscription: $185.6 million versus the two-analyst average estimate of $186.95 million.Gross profit- Services and other: $-4.49 million compared to the $-2.54 million average estimate based on two analysts.View all Key Company Metrics for SailPoint, Inc. here>>>
Shares of SailPoint, Inc. have returned +50.3% over the past month versus the Zacks S&P 500 composite's +0.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Three Stocks Under $20 With Massive Upside PotentialSailPoint NASDAQ: SAIL reported a stronger-than-expected start to fiscal 2027, with management pointing to continued SaaS migration activity, larger customer commitments and growing demand for identity security tied to artificial intelligence agents and other non-human identities.
On the company’s fiscal first-quarter earnings call, founder and CEO Mark McClain said SailPoint delivered “another quarter of robust top and bottom-line growth” and argued that identity security has become a central issue for enterprises adopting AI. Chief Financial Officer Brian Carolan said annual recurring revenue, revenue and adjusted operating margin all came in above the high end of the company’s guidance.
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ARR and SaaS Growth Lead First-Quarter Results SailPoint Had a Week to Forget—Is This the Buying Window?SailPoint ended fiscal Q1 2027 with annual recurring revenue of $1.163 billion, up 26% year over year. SaaS ARR reached $781 million, growing 36% from the prior year. Carolan said net new SaaS ARR was $35 million, up 5% as reported and more than 30% on a constant-currency basis.
Revenue for the quarter was $280 million, an increase of 22% year over year, while SaaS revenue grew 35%. Dollar-based net revenue retention was 113%.
Why SailPoint May Cruise Past Cybersecurity Rivals in 2025The company also reported an adjusted operating margin of 13.5%, representing approximately 330 basis points of year-over-year expansion. SailPoint generated $38 million in cash from operating activities and $33 million in free cash flow, equal to an 11.6% free cash flow margin. The company ended the quarter with $391 million in cash and cash equivalents.
Carolan said the business showed “balanced growth,” with contributions from both new customers and expansion within the existing base. Average ARR per customer rose 18% year over year to more than $350,000, and SailPoint ended the quarter with 225 customers generating more than $1 million in ARR, up 32% year over year.
AI Agents and Non-Human Identities Become Central Theme Much of the call focused on SailPoint’s view that AI adoption is creating a new identity security challenge for enterprises. McClain said autonomous agents and other non-human identities increasingly outnumber human identities inside companies, creating risks around excessive privileges, unmanaged access and machine-speed actions.
According to McClain, non-human identities accounted for 40% of SailPoint’s identity growth in Q1 and now represent 14% of all identities managed in the company’s cloud offering. He said SailPoint saw a greater than 50% ARR increase in customers adopting its advanced non-human identity capabilities during the quarter.
McClain highlighted SailPoint Agentic Fabric, introduced last month, as the company’s response to this shift. He described it as a governance layer designed to discover AI agents, assign them to accountable human owners, apply least-privilege controls and support real-time authorization and remediation. He said the offering is intended to work for cloud customers, on-premise IdentityIQ customers and organizations using other access management platforms.
“You cannot control what you cannot govern,” McClain said, adding that identity security is no longer simply a compliance requirement but a key part of enterprise AI strategy.
The company cited two customer examples from the quarter: a five-year commitment from a major North American retailer following a cyber breach and a platform modernization at a large insurance company moving to SailPoint Identity Security Cloud under a cloud-first mandate.
SaaS Migration and Emerging Products Drive Expansion Carolan said migration activity remained a key catalyst, with ARR from migrations more than doubling year over year. SaaS represented 92% of net new ARR in the quarter, compared with 69% in the same period last year.
Management said SailPoint’s Modernization Flex pricing program is helping customers move from on-premise products to the cloud. About one-third of migrations in Q1 used the Modernization Flex offering. Carolan also said ARR contribution from emerging products more than doubled year over year and represented 20% of net new ARR in the quarter.
During the question-and-answer session, President Matt Mills said SailPoint has created workshops for customers and prospects that bring together identity management, AI and security teams. He said those conversations often reveal that different groups inside large enterprises are only beginning to coordinate on AI identity risk.
Mills said about 10% of SailPoint customers have adopted AI-related capabilities and that the company is seeing “a lot of top-of-funnel attraction.” Management said the agentic pipeline doubled in Q1 and has been doubling quarter over quarter since inception, though executives repeatedly noted that the opportunity remains early and is not yet a major contributor to reported results.
Guidance Raised for Fiscal 2027 For fiscal Q2 2027, SailPoint expects ARR of $1.22 billion, up 24% year over year, and revenue of $310 million, up 17%. The company expects adjusted operating margin of 18.4%, diluted share count of approximately 571 million and adjusted earnings per share of $0.07 to $0.08.
For the full fiscal year, SailPoint raised its guidance to reflect Q1 upside. The company now expects:
ARR of $1.369 billion, up 22% year over year; Revenue of approximately $1.27 billion, up 19% year over year; Adjusted operating margin of 19%, up 50 basis points from the prior outlook; Adjusted EPS of $0.32, based on approximately 580 million diluted shares; Free cash flow of approximately $200 million. Carolan said SailPoint continues to expect 90% to 95% of net new ARR to come from SaaS in both Q2 and the full year, reflecting continued customer adoption of its cloud platform. He also cautioned that the shift toward SaaS can create short-term fluctuations in revenue growth and margins, while describing it as a long-term value driver.
In closing remarks, McClain said SailPoint is still in the “very early innings” of the agentic AI shift but sees “significant momentum building.” He said management expects that momentum to begin showing up in the company’s numbers over time, while adding that future guidance will reflect the opportunity “as appropriate.”
About SailPoint NASDAQ: SAILSailPoint Technologies Holdings, Inc NASDAQ: SAIL is a leading provider of enterprise identity governance solutions that enable organizations to manage and secure user access across on-premises, cloud and hybrid IT environments. Its software automates identity lifecycle management, access certifications, policy enforcement and privileged account governance, helping enterprises reduce security risks, maintain regulatory compliance and streamline IT operations. The company's flagship offerings include IdentityIQ, a comprehensive on-premises platform, and IdentityNow, a cloud-native identity governance-as-a-service solution.
Founded in 2005 by industry veterans Mark McClain and Kevin Cunningham, SailPoint is headquartered in Austin, Texas.
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New York, New York--(Newsfile Corp. - June 9, 2026) - Levi & Korsinsky notifies investors that it has commenced an investigation into SailPoint, Inc. ("SailPoint, Inc.") (NASDAQ: SAIL) concerning potential violations of the federal securities laws.
SailPoint's Q1 fiscal 2027 results showed year-over-year revenue growth and adjusted EPS that exceeded consensus expectations. Despite those headline figures, the stock was down approximately 12-14% following the earnings release. Financial media reports noted the decline was among the stock's largest daily moves in recent months.
The stock declined following management's forward outlook, which projected negative EPS for the coming quarter and flagged foreign-exchange headwinds that would dampen annual recurring revenue growth. Before the announcement, shares had risen substantially, and investor expectations were elevated. Market participants focused on management's outlook for future quarters, which contributed to a negative reaction despite the reported quarterly results.
If you suffered a loss on your SailPoint, Inc. securities and would like to explore a potential recovery under the federal securities laws, Learn More About the Investigation or contact Joseph E. Levi, Esq. via email at [email protected] or call (212)363-7500 to speak to our team of experienced shareholder advocates.
WHY LEVI & KORSINSKY: Over the past 20 years, Levi & Korsinsky LLP has established itself as a nationally-recognized securities litigation firm that has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. The firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report as one of the top securities litigation firms in the United States. Attorney Advertising. Prior results do not guarantee similar outcomes.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004 [email protected]
Tel: (212)363-7500
Fax: (212)363-7171
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/300808
SailPoint reported non-GAAP results beating consensus expectations -- but GAAP profitability remained negative, and the stock dropped approximately 12% in a single session.
, /PRNewswire/ -- SailPoint, Inc. (NASDAQ: SAIL) investors lost approximately 12% of their investment on June 9, 2026, when shares fell sharply despite a headline earnings beat. The Company reported adjusted EPS of $0.05, topping the $0.04 consensus estimate. GAAP results were less favorable relative to adjusted figures, and the stock dropped following the announcement. Shareholders who lost money on SAIL are encouraged to submit their information here. You may also contact Joseph E. Levi, Esq. via email at [email protected] or by telephone at (212) 363-7500.
SailPoint's Q1 fiscal 2027 press release highlighted non-GAAP results, including an adjusted EPS beat versus consensus. GAAP results remained weaker in comparison, reflecting a disparity between non-GAAP profitability metrics and GAAP performance.
The 12% single-session decline wiped out weeks of gains. SailPoint shares had rallied approximately 45% in the month preceding the earnings release. The stock declined sharply on June 9, making it one of its larger single-day movers over the preceding months.
If you purchased SailPoint shares and suffered a loss, click here to discuss your legal rights. You may also contact Joseph E. Levi, Esq. via email at [email protected] or by telephone at (212) 363-7500.
Levi & Korsinsky, LLP -- Top 50 securities litigation firm (ISS, seven consecutive years). Over 70 professionals. Hundreds of millions recovered.
Frequently Asked Questions About the SAIL Investigation
Q: Who is eligible to participate in the SAIL investigation?A: Investors who purchased SAIL stock or securities and suffered financial losses may be eligible. Eligibility is based on purchase date and documented losses -- not on whether you still hold the shares.
Q: Which statements are being investigated as potentially misleading?A: The investigation concerns whether SailPoint materially false or misleading statements regarding its financial results , including the presentation of non-GAAP metrics alongside GAAP figures. Following the earnings release and subsequent market reaction, the stock price declined sharply.
Q: How much did SAIL stock drop?A: Shares fell approximately 12% on June 9, 2026, after the Company released its Q1 fiscal 2027 earnings. Investors who purchased shares at higher prices may be entitled to recovery.
Q: What do SAIL investors need to do right now?A: Gather brokerage records including purchase dates, share quantities, and prices paid. Contact Levi & Korsinsky for a free, no-obligation evaluation at [email protected] or (212) 363-7500. No immediate action is required to remain eligible to participate in the investigation.
Q: What if I already sold my SAIL shares -- can I still recover losses?A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought SAIL and sold at a loss may still participate in the investigation.
Q: What does it cost me to participate?A: Nothing. Securities investigations are handled on a pure contingency basis. No upfront fees, no retainer, no out-of-pocket costs.
Q: Do I need to go to court or give testimony?A: No. Participating in the investigation does not require court appearances or depositions. The overwhelming majority of affected investors never appear in court.
CONTACT:\
Levi & Korsinsky, LLP\
Joseph E. Levi, Esq.\
Ed Korsinsky, Esq.\
33 Whitehall Street, 27th Floor\
New York, NY 10004\
[email protected]\
Tel: (212) 363-7500\
Fax: (212) 363-7171
SailPoint is downgraded to neutral after a 25% rally from March lows, despite a Q1 beat and raise. SAIL's subscription revenue remains robust, growing over 20%, and over 90% of total revenue is subscription-based. AI-driven growth has yet to materialize, with revenue deceleration and softening net retention rates raising concerns.
Key Takeaways SAIL beat Q1 estimates and raised FY2027 targets for ARR, revenue and adjusted operating margin.SAIL says nonhuman identities drove 40% of identity growth; Agentic Fabric ties AI agents to human owners.SAIL says agentic pipeline is doubling QoQ; expects AI impact later in year, with SaaS leading new ARR. SailPoint, Inc. (SAIL - Free Report) used its first-quarter fiscal 2027 earnings call to make a broader point than the quarter’s beat. Management framed identity security for AI agents and other nonhuman users as the next major control problem for enterprises, with SailPoint positioning itself at the center of that shift.
That message came with solid execution. The company topped the Zacks Consensus Estimate on both earnings and revenue, then raised full-year targets for ARR, revenue and adjusted operating margin.
SAIL Pushes an Agentic Identity ThesisChief executive officer Mark McClain used prepared remarks to argue that identity security is becoming a core layer of enterprise AI adoption, not just a compliance function. He said nonhuman identities represented 40% of identity growth in the quarter and 14% of all identities managed in SailPoint’s cloud offering.
McClain centered the discussion on the newly introduced Agentic Fabric, which is designed to discover, govern and assign AI agents to accountable human owners. He said customers need that link because agents can act autonomously, access sensitive data and operate outside traditional IT controls.
He also emphasized breadth as a differentiator, saying SailPoint can govern both modern cloud environments and harder-to-reach legacy systems. That broader platform story shaped much of the call’s forward-looking tone.
SailPoint Shows Growth With Better ProfitabilityChief financial officer Brian Carolan said the quarter finished above the high end of guidance for ARR, revenue and adjusted operating margin. Total ARR rose 26% year over year to $1.163 billion, while SaaS ARR increased 36% to $781 million. Revenue rose 22% to $280.1 million.
Adjusted operating margin expanded to 13.5% from 10.2% a year earlier. Adjusted EPS was $0.05, topping the Zacks Consensus Estimate of $0.04, producing a 17.65% earnings surprise. Revenue of $280.14 million also exceeded the Zacks Consensus Estimate of $276.25 million by 1.41%.
Cash generation also improved. SailPoint reported $38.2 million in operating cash flow and $32.5 million in free cash flow against negative figures in the prior-year period.
SAIL Raises the Bar for Fiscal 2027
Management flowed first-quarter upside into the rest of the year. For the second quarter, SailPoint guided to ARR of $1.218 billion to $1.222 billion, revenue of $308 million to $312 million and adjusted EPS of $0.07 to $0.08.
For fiscal 2027, the company now expects ARR of $1.364 billion to $1.374 billion, revenue of $1.265 billion to $1.275 billion and adjusted operating margin of 18.7% to 19.3%.
Carolan said the company also expects about $200 million of free cash flow for the year.
A key assumption did not change. Management still expects 90% to 95% of net new ARR to come from SaaS, even as that mix can pressure near-term revenue recognition and margins.
SailPoint Sees AI Demand, But Later-Year ImpactAnalyst questions focused heavily on timing. A Piper Sandler analyst asked when the fast-growing agentic pipeline would begin to influence results, and McClain said customer engagement has accelerated since the Agentic Fabric launch, even if the benefit is not yet showing up meaningfully in reported numbers.
President Matthew Mills added that SailPoint is running workshops that bring together customer identity, AI and security teams, often exposing governance gaps that were not previously coordinated. He said the company is seeing an acceleration in sales activity and that its agentic pipeline has been doubling quarter over quarter since inception.
Later in the call, Carolan told an Evercore ISI analyst that the AI-related contribution is still early but should show up more in the latter half of the year, with only minimal impact embedded in current guidance.
SAIL Uses Pricing and Migrations to Deepen ReachManagement also pointed to modernization as a bridge between the core identity business and newer AI-related products. Carolan said ARR from migration activity more than doubled year over year, and about one-third of migrations in the quarter used the company’s modernization Flex offering.
Mills said the company’s hybrid pricing structure is meant to reduce customer hesitation around nonhuman identities by bundling some baseline capacity with human identity licenses and then adding usage packs as needs expand.
That mattered in the call because management repeatedly tied future monetization to nonhuman identity growth, API calls, workflows and other consumption measures rather than to a simple seat count.
SailPoint Leaves a Clear Strategic MessageThe call’s broader tone was confident, but it was also disciplined. Executives did not declare a near-term AI windfall. Instead, they described a market that is still forming, with customer urgency rising faster than reported revenue contribution.
Management’s posture coming out of the quarter was that SailPoint’s advantage lies in tying AI agents and other nonhuman identities back to human governance, while using its existing enterprise footprint to expand adoption over time.
Zacks Rank and Style Scores Signal a Mixed SetupSAIL currently carries a Zacks Rank #3 (Hold), with a Value Score of F, Growth Score of B, Momentum Score of C and VGM Score of C. Under Zacks’ framework, a Rank #3 can still be held, while the better letter grades remain the more favorable signals within that middle ranking.
A B Growth Score points to stronger growth characteristics, but the F Value Score and C VGM Score imply a less compelling overall style profile.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Style Score framework is designed to complement, not override, the Zacks Rank, with the strongest combinations generally found in Zacks Rank #1 or #2 (Buy) stocks that also carry A or B style grades. That makes SAIL’s current setup more balanced than decisive, especially since the Zacks Rank can change as earnings estimate revisions adjust after the latest results.
SailPoint reported Q1 results that topped Wall Street estimates -- yet the stock dropped approximately 12% in a single session in the trading session following the announcement.
, /PRNewswire/ -- Investors in SailPoint, Inc. (NASDAQ: SAIL) lost approximately 12% per share on June 9, 2026, when the stock fell sharply despite the Company reporting fiscal Q1 2027 earnings of $0.05 per share against a consensus estimate of $0.04. Shareholders who suffered losses on their SAIL investment are encouraged to submit their information here. You may also contact Joseph E. Levi, Esq. via email at [email protected] or by telephone at (888) SueWallSt.
SailPoint's Q1 fiscal 2027 results showed year-over-year revenue growth and adjusted EPS that exceeded consensus expectations. Despite those headline figures, the stock was down approximately 12-14% following the earnings release. Financial media reports noted the decline was among the stock's largest daily moves in recent months.
The stock declined following management's forward outlook, which projected negative EPS for the coming quarter and flagged foreign-exchange headwinds that would dampen annual recurring revenue growth. Before the announcement, shares had risen substantially, and investor expectations were elevated. Market participants focused on management's outlook for future quarters, which contributed to a negative reaction despite the reported quarterly results.
SAIL investors who lost money are encouraged to click here to discuss their legal rights. You may also contact Joseph E. Levi, Esq. via email at [email protected] or by telephone at (888) SueWallSt.
ABOUT THE FIRM -- For over two decades, SueWallSt has represented shareholders in securities investigations and actions. Ranked in ISS Top 50 for seven consecutive years.
Frequently Asked Questions About the SAIL Investigation
Q: Who is eligible to participate in the SAIL investigation?A: Investors who purchased SAIL stock or securities and suffered financial losses may be eligible. Eligibility is based on purchase date and documented losses -- not on whether you still hold the shares.
Q: How much did SAIL stock drop?A: Shares fell approximately 12% on June 9, 2026 after the Company reported Q1 earnings that beat estimates but issued weaker-than-expected forward guidance. Investors who purchased shares at higher prices may be entitled to recovery.
Q: Which statements are being investigated as potentially misleading?A: The investigation concerns whether SailPoint made materially false or misleading statements regarding its forward outlook and growth trajectory. When the guidance was disclosed alongside Q1 results, the stock price declined sharply despite the earnings beat.
Q: What do SAIL investors need to do right now?A: Gather brokerage records including purchase dates, share quantities, and prices paid. Contact SueWallSt for a free, no-obligation evaluation at [email protected] or (888) SueWallSt. No immediate action is required to remain eligible to participate in the investigation.
Q: What if I already sold my SAIL shares -- can I still recover losses?A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought SAIL and sold at a loss may still participate in the investigation.
Q: What does it cost me to participate?A: Nothing. Securities investigations are handled on a pure contingency basis. No upfront fees, no retainer, no out-of-pocket costs.
CONTACT:
SueWallSt
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
[email protected]
Tel: (212) 363-7500
Fax: (212) 363-7171
For the fiscal first quarter ended April 30, SailPoint reported annual recurring revenue (ARR) of $1.163 billion, up 26% from a year earlier. SaaS ARR increased 36% to $781 million.
Total revenue rose 22% to $280.1 million, exceeding analysts' estimate of $276.0 million. Subscription revenue increased 23% to $265.8 million.
For the second quarter, SailPoint expects ARR of $1.218 billion to $1.222 billion, revenue of $308 million to $312 million, compared with analysts' estimate of $309.9 million, and adjusted earnings of 7 cents to 8 cents per share, versus expectations of 8 cents.
For fiscal 2027, SailPoint raised its ARR forecast to $1.364 billion to $1.374 billion from its prior outlook of $1.356 billion to $1.366 billion. The company also increased its revenue forecast to $1.265 billion to $1.275 billion from $1.260 billion to $1.270 billion.
SailPoint shares fell 4.1% to trade at $15.02 on Wednesday.
These analysts made changes to their price targets on SailPoint following earnings announcement.
Wells Fargo analyst Richard Poland maintained the stock with an Overweight rating and raised the price target from $17 to $19. Scotiabank analyst Patrick Colville maintained SailPoint with a Sector Outperform and raised the price target from $16 to $19. Considering buying SAIL stock? Here’s what analysts think:
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Key Takeaways SailPoint posted Q1 FY27 adjusted EPS of $0.05 on $280.1M revenues, both above estimates.SAIL's ARR rose 26% to $1.163B as SaaS made 63.7% of sales and grew about 35% to $178.4M.SailPoint expanded non-GAAP gross margin to 76.6% and lifted adjusted operating income to $37.8M. SailPoint (SAIL - Free Report) reported first-quarter fiscal 2027 adjusted earnings of 5 cents per share, which surpassed the Zacks Consensus Estimate of 4 cents by 25%. The company had reported earnings of 1 cent in the year-ago quarter.
Revenues were $280.1 million, up 21.6% year over year and ahead of the consensus mark by 1.41%. SailPoint’s strong quarterly performance was driven by continued demand for its identity security offerings and accelerating adoption of SaaS solutions.
SAIL’s Q1 Top-Line DetailsAs of April 30, 2026, annual recurring revenues (ARR) increased 26% year over year to $1.163 billion.
Segment-wise, SaaS contributed 63.7% of fiscal first-quarter total revenues, increasing approximately 35% year over year to $178.4 million. Maintenance and support revenues represented 12.3% of total revenues, which decreased 7.6% year over year to $34.5 million.
Term subscription revenues contributed 15.7% of total revenues, which rose 9.7% to $43.9 million. Other subscription services comprised 3.2% of total revenues, which increased 45.8% year over year to $8.8 million. Total subscription revenues, comprising the four sub-segments, accounted for 94.9% of revenues, which increased 23.5% year over year to $265.8 million. The remaining segment, Services and other, represented 5.1% of total revenues in the reported quarter. The figure decreased 5.4% to $14.3 million.
SailPoint’s Operating HighlightsThe non-GAAP gross margin expanded 30 basis points (bps) year over year to 76.6%.
Sales and marketing expense, on a non-GAAP basis and as a percentage of revenues, increased 10 bps from the year-ago quarter’s level to 39.7%.
Research and development expense, on a non-GAAP basis and as a percentage of revenues, decreased 50 bps from the year-ago quarter’s level to 16.3%.
General and administrative expense, as a percentage of revenues, decreased from the year-ago quarter’s level of 9.7% to 7.1%.
Adjusted income from operations was $37.8 million, representing 13.5% of revenues, up from $23.6 million or 10.2% of revenues, reported in the year-ago quarter.
SailPoint’s Strong Balance SheetAs of April 30, 2026, cash and cash equivalents were $390.8 million compared with $358.1 million as of Jan. 31, 2026.
In the reported quarter, the company generated a cash flow from operations of $38.2 million compared with $64 million in the previous quarter.
SAIL generated free cash flow of $32.5 million compared with $57 million in the previous quarter.
SAIL Offers Q2 and FY27 GuidanceFor second-quarter fiscal 2027, SailPoint expects revenues between $308 million and $312 million, indicating year-over-year growth of 17% to 18%.
The company expects adjusted income from operations to be between $56.5 million and $57.5 million.
Adjusted earnings are expected to be between 7 cents and 8 cents per share for the second quarter of fiscal 2027.
For fiscal 2027, revenues are forecasted to be between $1.265 billion and $1.275 billion, indicating year-over-year growth of 18% to 19%.
The company expects adjusted income from operations to be in the range of $239 million to $244 million.
Adjusted earnings are expected to be between 30 cents and 34 cents per share for fiscal 2027.
SailPoint’s Zacks Rank & Stocks to ConsiderCurrently, SAIL carries a Zacks Rank #3 (Hold).
Applied Materials (AMAT - Free Report) , Advanced Energy Industries (AEIS - Free Report) and Dell Technologies (DELL - Free Report) are some better-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector.
Applied Materials and Advanced Energy Industries each carry a Zacks Rank#2 (Buy), while Dell Technologies sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rates for Applied Materials, Advanced Energy Industries and Dell Technologies are currently pegged at 29.6%, 30.1% and 26.3%, respectively.
Netskope Inc. (NASDAQ:NTSK – Get Free Report) has received an average rating of “Moderate Buy” from the nineteen research firms that are presently covering the stock, MarketBeat Ratings reports. One research analyst has rated the stock with a sell recommendation, one has assigned a hold recommendation, sixteen have given a buy recommendation and one has assigned a strong buy recommendation to the company. The average twelve-month price target among brokers that have updated their coverage on the stock in the last year is $18.8889.
Several brokerages have recently weighed in on NTSK. William Blair set a $21.00 target price on Netskope in a research note on Thursday, March 12th. Oppenheimer reissued an “outperform” rating and issued a $19.00 price target (down from $23.00) on shares of Netskope in a report on Thursday, March 12th. Weiss Ratings restated a “sell (d-)” rating on shares of Netskope in a research report on Friday, March 27th. Piper Sandler decreased their price objective on shares of Netskope from $28.00 to $21.00 and set an “overweight” rating on the stock in a report on Thursday, March 12th. Finally, Wells Fargo & Company initiated coverage on shares of Netskope in a research report on Tuesday, March 3rd. They issued an “overweight” rating and a $13.00 target price on the stock.
Get Our Latest Stock Analysis on NTSK
Insider Activity at Netskope In other Netskope news, CRO Raphael Bousquet sold 3,823 shares of the stock in a transaction that occurred on Monday, January 12th. The stock was sold at an average price of $16.66, for a total transaction of $63,691.18. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Sanjay Beri sold 178,482 shares of the firm’s stock in a transaction that occurred on Tuesday, January 6th. The shares were sold at an average price of $17.13, for a total value of $3,057,396.66. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 270,190 shares of company stock valued at $4,639,362.
Institutional Trading of Netskope Large investors have recently made changes to their positions in the company. Farther Finance Advisors LLC purchased a new position in Netskope in the 4th quarter valued at $25,000. Quarry LP acquired a new stake in shares of Netskope in the third quarter valued at about $41,000. Triumph Capital Management raised its position in shares of Netskope by 380.0% in the fourth quarter. Triumph Capital Management now owns 2,400 shares of the company’s stock valued at $42,000 after buying an additional 1,900 shares during the last quarter. Wells Fargo & Company MN lifted its stake in shares of Netskope by 261.7% in the fourth quarter. Wells Fargo & Company MN now owns 3,617 shares of the company’s stock worth $63,000 after buying an additional 2,617 shares in the last quarter. Finally, Assetmark Inc. purchased a new position in shares of Netskope in the third quarter worth about $83,000.
Netskope Price Performance NASDAQ:NTSK opened at $9.07 on Monday. The company has a debt-to-equity ratio of 3.71, a current ratio of 2.13 and a quick ratio of 2.32. Netskope has a 52 week low of $7.66 and a 52 week high of $27.99. The company’s 50-day simple moving average is $11.07. The firm has a market cap of $3.57 billion and a PE ratio of -64.79.
Netskope (NASDAQ:NTSK – Get Free Report) last released its quarterly earnings results on Wednesday, March 11th. The company reported ($0.04) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.06) by $0.02. The business had revenue of $196.33 million during the quarter. The firm’s revenue was up 32.2% on a year-over-year basis. Netskope has set its Q1 2027 guidance at -0.070–0.060 EPS and its FY 2027 guidance at -0.190–0.190 EPS.
About Netskope (Get Free Report)
We are redefining security and networking for the era of cloud and AI. The cloud and AI have completely revolutionized work. We are more dispersed, more productive, and more automated than ever before, and the rate of change is only accelerating. Not since the internet has there been such a transformative tectonic shift. But, with it has come collateral damage-traditional security and networking are now broken. We founded Netskope to address this revolution. We built Netskope One, our unified, cloud-native platform from the ground up to solve the challenge of securing and accelerating the digital interactions of enterprises in this new era.
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Netskope CEO Sanjay Beri discusses rising cybersecurity threats amid the artificial intelligence boom and the importance of real-time protection against A.I.-driven attacks on ‘The Claman Countdown.
SANTA CLARA, Calif., May 05, 2026 (GLOBE NEWSWIRE) -- Netskope (NASDAQ: NTSK), a leader in modern security and networking for the cloud and AI era, today announced Netskope One AgentSkope, an architectural foundation that allows organizations to easily deploy Netskope AI agents capable of executing end-to-end workflows. Serving as a new intelligent layer of the Netskope One Platform, AgentSkope enables agentic operations that support security and networking teams: automating onerous operational processes and freeing up skilled staff to focus on strategic initiatives.
Security operations centers (SOCs) and network operations centers (NOCs) are facing unprecedented challenges: 40% of alerts are going entirely uninvestigated due to a lack of capacity1. AgentSkope addresses systemic capacity issues, removing complexity and acting as an autonomous force multiplier for both security and networking teams. AgentSkope provides the foundation to build and release agents quickly and efficiently, creates a common set of security, privacy and GRC controls to protect customers uniformly across the platform, provides a consistent experience and tracks and monitors agent utilization. Netskope AI agents help organizations to drastically reduce time spent on manual workflows, from policy creation through to triage, investigation and troubleshooting, allowing organizations to adapt their defenses at the speed of business. By 2028, cybersecurity AI agents will autonomously manage 25% of incident response workflows for data security events, enhancing data risk mitigation speed and effectiveness2.
The initial launch includes six agents, with more to follow over the coming months:
Netskope DLP AISecOps Agent: A first-of-its-kind resource for agentic DLP analysis. This agent mimics the actions of a security operations analyst to execute end-to-end data protection workflows, applying contextualized risk assessments (finding the needle in the haystack), intelligent triage and investigation, and agentic risk remediation. Providing a unified workflow for data security analysts to investigate and remediate, the DLP AISecOps Agent helps teams avoid losing hours to low-value incidents, false positives, or duplicates. This enables organizations to achieve robust security outcomes with more efficient teams, by helping teams to focus resources on critical threats. One large beta customer, a global professional services organization, is using the DLP AISecOps Agent to analyze millions of alerts, convert them into dozens of cases that are automatically investigated in minutes, and free up team members to focus their time on the most important cases that require human attention.Netskope Insider Threat AISecOps Agent: Focuses on triage and analysis of insider threats, combining DLP alerts with user behavior data to identify malicious activity and protect against insider threat.Netskope Private Access AIOps Agent: Automatically audits configurations for Netskope One Private Access, removing dormant settings and helping to ensure access privileges are not left open. It generates granular application segments and policies based on user consumption patterns.Netskope DEM Data Intelligence Agent: Streamlines troubleshooting for user experience issues by transforming granular telemetry and raw metrics from digital experience management (DEM) into actionable insights via natural language in an easy to use conversational interface.Netskope DEM Insights Agent: Provides a high-level view of organizational digital health, correlating granular telemetry to surface critical incidents, macro-impacting trends and performance bottlenecks.Netskope CCI Insights Agent: Empowers SOC analysts to query complex risk attributes and compliance certifications across more than 85,000 cloud, AI and SaaS applications using natural language, enabling conversational interaction with app risk data. Sanjay Beri, Co-Founder and CEO of Netskope commented: “Security and network operations teams today are overwhelmed by an endless loop of manual triage, and bogged down by repetitive tasks across disparate tools, leading to severe analyst burnout, an inability to innovate at speed, and unchecked risk. That’s why we built AgentSkope to act as an autonomous force multiplier, providing a shared architectural foundation that allows organizations to easily deploy AI agents capable of executing end-to-end workflows. By abstracting away operational complexity and removing internal development bottlenecks, we are empowering security and network leaders to drastically reduce manual troubleshooting, free up their skilled staff for strategic initiatives, and adapt their defenses at the speed of business.”
Stuart Walters, Partner and Chief Information Officer, BDO UK said: “It won't surprise anyone to hear that as the fifth-largest accountancy and business advisory firm in the world, BDO is data-rich. Our security and access infrastructures are complex, and staffed by busy and experienced teams. In the UK, we already rely on Netskope to secure our data, but we know the scale of the challenge is only going to grow as we encourage AI adoption—so too is the increased data movement that brings. Agentic operations that support our security and networking operations teams in handling their growing workflows will be very important for us moving forward.”
Pete Finalle, Research Manager, Security & Trust at IDC commented: “Security and network operations teams shoulder an incredible burden as the embrace of AI exacerbates their never-ending list of tasks. For decades, the answer to new security concerns has been consistent - additional tools, additional features, and additional complexity, which has increased operational noise and continues to highlight personnel resource limitations. In the face of a rapidly expanding, AI fueled threat landscape, CIOs and CISOs must invest in agentic security automation, as a force multiplier to enhance skilled human resources. The ability to intelligently triage threats, help manage the increasing scope and scale of modern threats, and keep up with new AI models/agents, can no longer remain a manual process.”
AgentSkope and the DLP AISecOps, CCI Insights, Private Access AIOps, DEM Data Intelligence and DEM Insights agents are all generally available, with the Insider Threat AISecOps Agent currently in private preview. Read more on the Netskope blog, including insights for security operations use cases and for network operations teams.
Netskope’s AI Fast Lane events are hitting the road from May 2026, visiting 41 cities across the Americas, Europe, Middle East, Africa and APJ. Join the tour in a city near you to learn how to harness the power of AI in your organization, without security trade-offs.
Explore the Netskope AI Index and get real-time intelligence on the trends shaping enterprise AI adoption.
About Netskope
Netskope (NASDAQ: NTSK), a leader in modern security and networking for the cloud and AI era, addresses the needs of both security and networking teams by providing optimized access and real-time, context-based security for the AI ecosystem inclusive of agents, applications, tools, LLMs, people, devices, and data. Thousands of customers, including more than 30 of the Fortune 100, trust the Netskope One platform, its Zero Trust Engine, and its powerful NewEdge network to reduce risk and gain full visibility and control over cloud, AI, SaaS, web, and private applications – providing security and accelerating performance without trade-offs. Learn more at
netskope.com,
Netskope.ai, on
LinkedIn, and
Instagram.
Forward Looking Statements
This press release contains forward-looking statements that are based on our beliefs and assumptions and on information currently available to us. These forward-looking statements include the growth and adoption of cybersecurity AI agents, and the expected benefits of new solutions offered to customers. These forward-looking statements are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995. A significant number of factors could cause actual results to differ materially from statements made in this press release, including those factors related to adoption of new AI solutions, the impact new offerings may have, and our customers’ purchasing decisions. Any forward-looking statements in this release are based on the limited information currently available to Netskope as of the date hereof, which is subject to change, and Netskope will not necessarily update the information, even if new information becomes available in the future.
1 Software Analyst Cyber Research (SACR) 2025
2 Gartner®, Predicts 2026: 4 Forces Reshaping Application and Data Security, 8 January 2026.
GARTNER is a trademark of Gartner, Inc. and/or its affiliates.
SANTA CLARA Calif., May 07, 2026 (GLOBE NEWSWIRE) -- Netskope (NASDAQ: NTSK), a leader in modern security and networking for the cloud and AI era, today announced that it will release financial results for its fiscal first quarter ended April 30, 2026, after the market closes on Wednesday, June 3, 2026.
Management will host a live conference call that day at 2:00 pm PT / 5:00 pm ET to discuss the company’s financial results.
A live webcast of the conference call and related materials can be accessed from the company’s investor relations website at https://investors.netskope.com. Following the call, a replay of the webcast will also be available on the investor relations website.
About Netskope
Netskope (NASDAQ: NTSK), a leader in modern security and networking for the cloud and AI era, addresses the needs of both security and networking teams by providing optimized access and real-time, context-based security for the AI ecosystem inclusive of agents, applications, tools, LLMs, people, devices, and data. Thousands of customers, including more than 30 of the Fortune 100, trust the Netskope One platform, its Zero Trust Engine, and its powerful NewEdge network to reduce risk and gain full visibility and control over cloud, AI, SaaS, web, and private applications – providing security and accelerating performance without trade-offs. Learn more at netskope.com, Netskope.ai, on LinkedIn, and Instagram.
Investor Relations Contact:
Floris van der Veer
Director of Investor Relations [email protected]
Media Contact:
Tim Whitman
Director of Global Corporate Communications [email protected]
On May 7, 2026, New York Life Insurance Co disclosed in an SEC filing that it sold 338,958 shares of Netskope (NTSK 5.89%), an estimated $4.21 million trade based on quarterly average pricing.
What happenedAccording to a Securities and Exchange Commission (SEC) filing dated May 7, 2026, New York Life Insurance Co sold 338,958 shares of Netskope during the first quarter of 2026. The estimated transaction value is $4.21 million, based on the average unadjusted closing price for the quarter. The fund’s quarter-end position in Netskope declined in value by $15.31 million, a figure that includes both share sales and price movement.
What else to knowThis sell reduces Netskope’s weight to 1.79% of the fund’s $490.55 million 13F assets under management.Top five holdings after the filing:NYSEMKT:VOO: $288.31 million (58.8% of AUM)NYSEMKT:SPY: $92.69 million (18.9% of AUM)NASDAQ:SECR: $25.99 million (5.3% of AUM)NYSEMKT:MMCA: $24.83 million (5.1% of AUM)As of May 6, 2026, Netskope shares were priced at $11. Shares have tumbled about 52% since the firm’s September IPO.The position was previously 5.3% of the fund's AUM as of the prior quarter.Company overviewMetricValuePrice$11Market Capitalization$4.4 billionRevenue (TTM)$709.00 millionNet Income (TTM)($679.39 million)Company snapshotNetskope offers a unified cloud security platform (Netskope One) delivering data protection, secure access, threat prevention, and visibility across SaaS, web, cloud, and AI workloads.The firm targets organizations seeking advanced security solutions for hybrid, cloud, and AI-driven environments.It serves a customer base concentrated among large enterprises, leveraging a scalable subscription model.Netskope, Inc. is a technology company specializing in cloud security, with a focus on providing comprehensive data protection and secure access for modern enterprise IT environments. The company leverages its unified platform to address the evolving security needs of organizations adopting SaaS, web, and AI workloads. With a scalable subscription model and a customer base concentrated among large enterprises, Netskope positions itself as a leader in the cloud security sector.
What this transaction means for investorsNetskope shares have been on a rough ride since the firm’s September IPO, falling about 50%. Fundamentally, however, Netskope’s latest quarter was actually solid. Fourth-quarter revenue climbed 32% year over year to $196.3 million, while ARR rose 31% to $811 million. The company also generated positive free cash flow for the first full fiscal year in its history and ended January with roughly $1.2 billion in cash, cash equivalents, and marketable securities.
The problem was the outlook. Netskope forecasts fiscal 2027 revenue between $870 million and $876 million, implying growth of roughly 23%, a notable deceleration from the 32% growth it posted in fiscal 2026, and investors, of course, took note.
Still, New York Life maintains a non-negligible stake in the firm, signaling that the sale doesn’t necessarily reflect a complete loss of faith in Netskope’s business, but instead a risk-reduction move ahead of what could be a complicated growth story.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Vanguard S&P 500 ETF. The Motley Fool has a disclosure policy.
What happenedAccording to an SEC filing dated May 11, 2026, Sapphire Ventures, L.L.C. initiated a new position in Netskope (NTSK 5.89%) in the first quarter by acquiring 5,672,579 shares. The estimated value of this transaction is $70.40 million, calculated using the average closing share price during the first quarter of 2026. At quarter’s end, the position was valued at $48.16 million, reflecting market price movements during the reporting period.
What else to knowThis was a new position, with Netskope representing 48.43% of Sapphire Ventures’ 13F reportable assets after the trade.Top holdings after the filing:NASDAQ:NTSK: $48.16 million (48.4% of AUM)NASDAQ:BRZE: $39.33 million (39.5% of AUM)NASDAQ:KLTR: $9.74 million (9.8% of AUM)NYSE:PATH: $2.22 million (2.2% of AUM)As of May 11, 2026, Netskope shares closed at a price of $11.24.Netskope reported trailing twelve months revenue of $709 million and a net loss of $679.39 million through January 31, 2026.The position places Sapphire Ventures’ total reported 13F assets at $99.45 million across four positions.Company OverviewMetricValuePrice (as of market close 2026-05-12)$11.24Market Capitalization$4.50 billionRevenue (TTM)$709.00 millionNet Income (TTM)$ (679.39) millionCompany SnapshotNetskope offers a unified cloud-security platform, "Netskope One," providing data protection, secure access, threat prevention, and network optimization for SaaS, web, hybrid, and AI workloads.It operates primarily on a subscription-based model, delivering its security solutions as cloud services to enterprise customers.The company serves a global client base of large organizations seeking advanced cloud security and compliance for complex digital infrastructures.Netskope, Inc. is a technology company specializing in cloud security solutions for enterprise clients. The company leverages a unified platform to address data protection, threat management, and secure access across cloud and web applications.
With a focus on scalable, subscription-based offerings, Netskope aims to deliver robust security and visibility for organizations navigating digital transformation and evolving cybersecurity threats.
What this transaction means for investorsThe first quarter purchase of Netskope shares by Sapphire Ventures is noteworthy for a few reasons. The transaction represents a new stake, and it was so big, it catapulted Netskope to the hedge fund’s top holding.
Perhaps Sapphire Ventures saw an opportunity in Wall Street’s widespread sell-off of cybersecurity stocks in the first quarter of this year. After all, Netskope shares hit a 52-week low of $7.67 in Q1. This is a substantial drop from its $19 IPO price when the company went public last September.
Netskope is seeing strong business growth. It exited its 2026 fiscal year, ended Jan. 31, with a 32% year-over-year increase in sales to $709 million. Its gross profit also rose to 68% from 65% in fiscal 2025.
With the decline in its stock price, Netskope shares are attractively-priced. Its price-to-sales ratio of 3.5 is a significant reduction from the 14.7 seen around the time of its IPO. This makes now a good time to pick up shares.
Robert Izquierdo has positions in UiPath. The Motley Fool has positions in and recommends Braze and UiPath. The Motley Fool has a disclosure policy.
Netskope (NTSK) is initiated with a buy rating, reflecting mispriced growth potential and robust cloud and AI-native cybersecurity capabilities. NTSK trades at less than 5x forward sales, offering best-in-class projected topline growth of 23% annually versus pricier peers. Gross margin progression (targeting 80%) and positive free cash flow are expected as NTSK scales its proprietary NewEdge network.
SANTA CLARA, Calif., May 21, 2026 (GLOBE NEWSWIRE) -- Netskope (NASDAQ: NTSK), a leader in modern security and networking for the cloud and AI era, today announced a key integration with the Claude Compliance API. With this, organizations can now connect Claude Enterprise directly into the enhanced AI security features of the Netskope One platform, including full asset, identity and activity visibility, robust policy enforcement, advanced data security, and comprehensive security posture management.
According to the Netskope AI Index - the authoritative source on the enterprise use and adoption of AI worldwide - Anthropic's Claude grew from 56.2% to 94.9% adoption between April 2025 and April 2026. As AI application usage continues to rise at pace, organizations are urgently modernizing their data protection strategies. Maintaining compliance standards, mitigating data policy violations, and helping support secure usage of enterprise applications is increasingly critical.
Netskope One AI Security provides comprehensive discovery, visibility and real-time governance of AI applications, models, agents and tools in use, analyzes their specific risks, and accelerates secure AI adoption across the entire ecosystem, within a fully unified and integrated platform. Netskope’s integration with the Claude Compliance API extends the protections and controls that customers can build around their AI adoption, enabling them to build security directly into their Claude workflows. By surfacing Claude activity within the Netskope One Platform, organizations can govern Claude using the same risk frameworks, DLP profiles, and compliance controls they already operate, without adding operational overhead.
Sanjay Beri, CEO and co-founder, Netskope commented: “Organizations are rapidly moving beyond experimentation and embracing AI at scale. Our integration with the Claude Compliance API is critical to that AI ecosystem story, connecting Netskope's unified data governance and compliance controls directly to Claude usage. This allows our shared customers to adopt these valuable tools at pace and with confidence.”
Anthropic’s Compliance API is a REST API that gives enterprise IT and security teams programmatic access to Claude activity data. Rather than relying on manual exports and periodic reviews, organizations can use the Claude Compliance API for real-time programmatic access to Claude usage data and customer content, enabling them to build continuous monitoring and automated policy enforcement systems. Administrators can integrate Claude data into existing compliance dashboards, automatically flag potential issues, and manage data retention.
Through the integration, Netskope surfaces Claude activity data and enables security teams to:
Get comprehensive visibility into the Claude environment: Automatically inventory all organizations, workspaces, projects, users, API keys, and MCP servers across an entire Claude deployment. Discover every third-party tool and data source Claude is authorized to access and manage access from Netskope’s single integrated console.Protect data and defend against threats: Apply to Claude Enterprise conversations the same DLP policies that already protect other enterprise applications. Every file uploaded to, or generated within, Claude Enterprise is inspected by Netskope’s threat protection and malware engines, with Claude activity also feeding directly into Netskope's UEBA engine, surfacing behavioral anomalies and updating each user's User Confidence Index (UCI) score, so risky behavior in Claude doesn't go undetected.Stay audit-ready and in control: Continuously evaluate Claude's configuration against GDPR, HIPAA, SOC 2 (AICPA TSC), NIST 800-53, CSA CCM, and PCI-DSS, with findings mapped directly to specific compliance controls so teams know exactly what to remediate and why. Maintain full lifecycle governance over Claude API key credentials, including key rotation hygiene, least-privilege audits, orphaned key detection, and administrator attribution, all surfaced within existing Netskope workflows and without requiring custom builds. This integration will be available in private preview for all customers in June. To learn more about securing AI with Netskope, visit here.
About Anthropic
Anthropic is an AI safety company building reliable, interpretable, and steerable AI systems, including Claude, an AI assistant focused on safety and helpfulness.
About Netskope
Netskope (NASDAQ: NTSK), a leader in modern security and networking for the cloud and AI era, addresses the needs of both security and networking teams by providing optimized access and real-time, context-based security for the AI ecosystem inclusive of agents, applications, tools, LLMs, people, devices, and data. Thousands of customers, including more than 30 of the Fortune 100, trust the Netskope One platform, its Zero Trust Engine, and its powerful NewEdge network to reduce risk and gain full visibility and control over cloud, AI, SaaS, web, and private applications – providing security and accelerating performance without trade-offs. Learn more at netskope.com, Netskope.ai, on LinkedIn, and Instagram.
SANTA CLARA, Calif., and NEW YORK, May 27, 2026 (GLOBE NEWSWIRE) -- Deloitte and Netskope (NASDAQ: NTSK), a leader in modern security and networking for the cloud and AI era, today announced a new expansion of their strategic partnership. Deloitte will now leverage Netskope technology to provide managed Secure Access Service Edge (SASE) capabilities to enterprise customers seeking to transform their infrastructure, modernize security and networking, and drive secure AI adoption.
Building on the yearslong strategic alliance between Deloitte and Netskope, the new Managed SASE service combines Deloitte’s global cyber operations framework, advisory services, and managed security experience with Netskope’s industry‑leading SASE and Security Service Edge (SSE) capabilities, including Software-Defined Wide Area Network (SD-WAN), Zero Trust Network Access (ZTNA), Secure Web Gateway (SWG), Cloud Access Security Broker (CASB) and Firewall-as-a-Service (FWaaS). Together, Deloitte and Netskope will support clients in accelerating secure digital transformation, reducing complexity, and strengthening protection across hybrid, multi-cloud, and AI-ready environments.
“As organizations continue to modernize their technology and migrate critical workloads to the cloud, the need for integrated, scalable, and intelligence-driven security models becomes paramount,” said Luis Silva Abreu, Partner at Deloitte. “Our strengthened collaboration with Netskope enables us to deliver a comprehensive Managed SASE service that meets these evolving challenges and provides clients with the confidence to innovate securely.”
“This ongoing collaboration with Deloitte reflects the scale of our joint commitment to support global clients,” said Amit Srirastav, SVP, Strategy, Global Systems Integrators and MSSP, at Netskope. “Deloitte’s international footprint, combined with the capabilities of the Netskope One platform, positions us strongly to help organizations modernize security operations and securely adopt cloud and AI with consistent standards across regions.”
The global SASE market is projected to reach $28.5B by 20281, growing at a CAGR of 26%, as organizations upgrade their security and networking capabilities for modern cloud and AI adoption requirements. Netskope is known for its industry-leading Netskope One platform and has been repeatedly recognized by industry analysts for SASE and SSE, including by Gartner® as a Leader in the Magic Quadrant™ for Security Service Edge (SSE) four years in a row and a Leader in the Magic Quadrant for SASE Platforms two years in a row.
Today’s announcement follows many years of successful collaboration between Deloitte and Netskope, including joint global initiatives in cloud security transformation and managed detection and response. With this latest expansion, both organizations reinforce their commitment to helping clients navigate today’s complex environment with agility and confidence.
Managed SASE services from Deloitte and Netskope are now available in the EMEA region, with more regions to follow. Deloitte and Netskope provide discovery workshops for SASE implementation and demonstrations of SASE technology in action.
About Deloitte
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (DTTL), its global network of member firms, and their related entities (collectively, the "Deloitte organization"). DTTL (also referred to as "Deloitte Global") and each of its member firms and related entities are legally separate and independent entities, which cannot obligate or bind each other in respect of third parties. DTTL and each DTTL member firm and related entity is liable only for its own acts and omissions, and not those of each other. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more.
Deloitte provides industry-leading Audit & Assurance, Tax & Legal, Consulting | Technology & Transformation and Advisory | Strategy, Risk & Transactions to nearly 90% of the Fortune Global 500® among thousands of private companies. Our professionals deliver measurable and lasting results that help reinforce public trust in capital markets, enable clients to transform and thrive, and lead the way toward a stronger economy, a more equitable society and a sustainable world. Building on its 180-year history, Deloitte spans more than 150 countries and territories. To learn how Deloitte’s 460,000 people worldwide make an impact that matters please consult www.deloitte.com.
About Netskope
Netskope (NASDAQ: NTSK), a leader in modern security and networking for the cloud and AI era, addresses the needs of both security and networking teams by providing optimized access and real-time, context-based security for the AI ecosystem inclusive of agents, applications, tools, LLMs, people, devices, and data. Thousands of customers, including more than 30 of the Fortune 100, trust the Netskope One platform, its Zero Trust Engine, and its powerful NewEdge network to reduce risk and gain full visibility and control over cloud, AI, SaaS, web, and private applications - providing security and accelerating performance without trade-offs. Learn more at netskope.com, Netskope.ai, on LinkedIn, and Instagram.
Forward Looking Statements
This press release contains forward-looking statements that are based on our beliefs and assumptions and on information currently available to us. These forward-looking statements include the growth of the SASE market and demand for cloud security. These forward-looking statements are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995. A significant number of factors could cause actual results to differ materially from statements made in this press release, including those factors related to adoption of cloud security and our customers’ purchasing decisions. Any forward-looking statements in this release are based on the limited information currently available to Netskope as of the date hereof, which is subject to change, and Netskope will not necessarily update the information, even if new information becomes available in the future. This release also contains estimates made by independent parties relating to projected market growth. Such estimates are necessarily subject to a high degree of uncertainty and risk due to a variety of factors, and accordingly, their accuracy and completeness cannot be guaranteed.
A global survey of 1,500+ Chief Product Officers offers data on the future of product leadership and how organizations can create and deliver value at the speed of AI.
, /PRNewswire/ -- Products That Count, the world's largest nonprofit community of product leaders, and Mighty Capital, a venture capital firm specializing in product-led investing, today released the fifth annual Chief Product Officer ("CPO") Insights Report. Drawing on data from more than 1,500 product leaders across industries and geographies, from Fortune 1000 giants to early-stage startups, the 2026 edition dissects how traditional boundaries between product, design, and engineering are collapsing, and explores the emergence of a new kind of operator: the Product Builder, a hybrid Product Manager-engineering role redefining what it means to ship in the AI era. Among the report's most consequential findings: the Product Manager role as we know it will be obsolete by 2030.
"This year's insights carry new weight, because AI's impact on product management is arguably one of the most consequential shifts happening in tech right now. There's a lot of discourse around how companies should meet this moment," said SC Moatti, Founder and Board Chair at Products That Count and Founding Managing Partner at Mighty Capital. "We move beyond the theoretical with data and actionable strategies that give product leaders and organizations the foundation they need to thrive in this new reality."
Key Takeaways from the 2026 Report: What Happens When AI Eliminates Constraint
Product teams have always operated under one simple constraint: building software is expensive, slow, and resource-intensive. Everything about traditional product organizations is designed around that reality, from roadmaps to careful feature prioritization shaped by what engineering had bandwidth to ship. The 2026 CPO Insights Report confirms that in the age of AI, that constraint has largely vanished.
Three out of four product leaders are now using AI to accelerate prototyping and product exploration, with ripple effects emerging across every stage of the product lifecycle, from discovery to iteration to management:
Product Builders Are the New Product Managers In the last year, the number of Product Builders has increased 10x. Simultaneously, the number of traditional product managers has declined by 30% across all industries and by as much as 70% in SaaS. While it once required a team of 12 people to develop a single product, a team of 12 Product Builders can now deliver 12 products. Speed to Market Is the #1 Concern for CPOs in 2026 Speed to market is now the primary internal challenge facing CPOs, jumping from 14% in 2025 to 22% in 2026. Bottlenecks have shifted from building to launching: go-to-market execution, customer adoption, and organizational alignment are now where products get stuck. CPOs are Moving up the Stack to Bet on New Market Opportunities CPOs are spending more time on strategy (74%, up from 69% in 2025) and innovation (31%, up from 21%), and less time on stakeholder management (10%, down from 28%) and roadmap development (10%, down from 18%). The most ambitious CPOs are expanding scope across three new dimensions: geographies, market segments, and routes to market, blurring lines between product and marketing as they take direct ownership of positioning, adoption, and monetization. A New Role Is Emerging: the Chief Product Investor A greater stake in the bottom line is giving rise to the Chief Product Investor, a CPO who thinks like a portfolio manager, places bets across product lines, and cuts what isn't working before the financial metrics catch up. One in three CPOs now owns the AI M&A budget, deciding whether to acquire capabilities or build them with AI-native teams. "The transformational leaders in this next stage of AI will be those willing to redesign how products are built and how organizations operate," said Renée Niemi, Resident Chief Product Officer at Products That Count. "Good product leaders will move features faster. Great ones will rethink the product OS. The best will operate as portfolio-driven engines of innovation, placing bets and scaling what works as Chief Product Investors."
A Legacy of Data-Driven Predictions
The 2026 CPO Insights Report continues Products That Count and Mighty Capital's proven track record of accurate, early predictions:
The rise of the CPO, as predicted in the 2022 CPO Insights Report: The role existed at 3-4% of Fortune 1000 companies in 2020, compared to more than 30% just two years later. The increase in product leaders taking bottom-line ownership, as predicted in the 2023 CPO Insights Report: Over half of all CPOs now have Profit and Loss (P&L) responsibility. The promotion of CPOs to CEO and President, as predicted in the 2024 CPO Insights Report: 20% of Products That Count CPO award winners were promoted to CEO or President within 12 months. To download the full 2026 CPO Insights Report, visit productsthatcount.org/CPO-research.
ABOUT PRODUCTS THAT COUNT
Products That Count is the world's largest nonprofit community, engaging 600,000+ product managers and Chief Product Officers (CPOs) united by a mission: to empower everyone to build products that truly count. In a world flooded with products, only a few ignite passion, deliver value at scale, and transform lives. Behind those exceptional products are visionary CPOs and high-performing product teams driving innovation at the most bleeding-edge companies. We recognize these trailblazers through our coveted Awards, accelerate careers from PM to the C-suite and beyond through daily best practices, and serve as the trusted advisor to nearly all Fortune 1000 CPOs. Our Corporate Alliance includes Walmart, Ford, Cisco, Johnson & Johnson, Amplitude, and more. The most admired product leaders across industries serve on our Advisory Council, guiding the future of product leadership. Together, we're shaping a future where every product counts. Learn more at productsthatcount.org
ABOUT MIGHTY CAPITAL
Mighty Capital is the VC firm that leverages the Product Alpha Effect™, a data-backed way to produce outliers by reading product signals from a 600,000-product-leader network. Founded in 2018 by SC Moatti, a product visionary and former Meta product leader, and Jennifer Vancini, an idea-to-IPO veteran of tech investing, we bring a differentiated edge to venture. Through Moatti's 600,000-strong Products That Count network of product leaders, we see trends before others do, giving us a proprietary advantage in sourcing, diligence, and post-investment value creation. Our early-stage B2B tech portfolio speaks for itself, with category leaders like Amplitude (NASDAQ:AMPL), Netskope (NASDAQ:NTSK) and Groq. Founders consistently call us the most value-add investor on their cap table, and use our global product ecosystem as a marketplace to accelerate time to revenue, scale, and exit. Learn more at Mighty.Capital.
Disclaimer: Certain statements in this release, including portfolio and liquidity references, are based on Mighty Capital's internal records and analysis as of February 14, 2026. Portfolio company examples are provided for illustrative purposes only and are not intended to represent all portfolio investments or outcomes. Past performance is not indicative of future results.
MEDIA CONTACT
Tess Pawlisch
608-333-9788
[email protected]
SANTA CLARA, Calif., May 28, 2026 (GLOBE NEWSWIRE) -- Netskope (NASDAQ: NTSK), a leader in modern security and networking for the cloud and AI era, today announced it has enhanced its NewEdge Network infrastructure, setting a new industry benchmark by covering the essential data location components for data sovereignty in more regions than any other SASE cloud provider. Netskope’s NewEdge Network architecture now provides national data localization features that meet requirements for network transport, data processing, and metadata governance in all major regions of the world, and allows Netskope to rapidly expand this coverage to additional countries. Additionally, the solution will provide third-party validation for customers to help with compliance and data localization requirements.
A comprehensive approach to data location and control
As nations increasingly assert control over their digital borders, Netskope’s secure access services edge (SASE) services architecture enables organizations in two dozen countries to select configurations that support the four core components of data localization:
Network transport: Egressing traffic within national borders and ensuring it is egressed exclusively by local providersData processing: Required computation and processing activities occur within the country. User flows, data processing and security features are all computed locally.Domestic storage: In-country maintenance of identifiable and proprietary data and logs ensures that customer-sensitive information remains within country borders.Metadata governance: Descriptive information generated across transport, processing, and storage is governed within national borders. This includes the post-processing metadata that accompanies the output of Netskope’s products, reinforcing end-to-end data residency.
Unmatched visibility and verifiable trust
The Netskope NewEdge Network was designed to give Netskope customers control and flexibility over where and how their data is secured. Netskope’s support for data sovereignty is fundamental to its customer service: enabling complete visibility and control over data in use, at rest and in motion. By operating within data planes in an applicable country, Netskope makes it possible to monitor, inspect, and control traffic flows and metadata within the national boundaries of the country, with real-time observability.
To enable verification, Netskope provides a fully auditable environment where customers can review activity, user actions, and system changes. Furthermore, Netskope’s sovereignty posture is subject to third-party validation, providing certifications for formal legal and governmental auditing.
Performance for the AI era
Netskope NewEdge is the high-performance, private cloud network infrastructure that powers Netskope’s security and network services. In addition to enhanced data sovereignty capabilities, the expansion of NewEdge—now comprising over 120 data centers across more than 80 regions, including recent additions in Indonesia and Turkey—ensures that compliance does not come at the cost of performance. With the recently announced NewEdge AI Fast Path, customers receive optimized routing and local processing for AI workloads, eliminating the trade-off between strict security and governance controls and the speed required for modern, multi-prompt agentic AI.
"With organizations moving at AI speed, any trade-off between governance and performance is unacceptable," said Joe DePalo, Chief Platform Officer at Netskope. "Our in-country data plane architecture combined with local data storage enables our customers to meet the non-negotiable demand for digital control while optimizing the user experience for business-critical AI, web, cloud and SaaS traffic."
You can read more advice about how organizations should handle data sovereignty, and the promises of ‘Sovereign SASE’ in this blog; Sovereign SASE: Why Yes/No Is the Wrong Answer.
With these NewEdge enhancements, Netskope’s expanded data sovereignty support now includes: (alphabetically); Australia, Brazil, Canada, Chile, China, France, Germany, Hong Kong, India, Israel, Italy, Japan, the Netherlands, New Zealand, Saudi Arabia, Singapore, South Africa, Spain, Switzerland, Taiwan, Thailand, United Arab Emirates, the United Kingdom, and the United States of America.
For more information on how Netskope helps organizations balance data sovereignty with secure AI adoption, visit the Netskope NewEdge Network page on Netskope.com.
About Netskope
Netskope (NASDAQ: NTSK), a leader in modern security and networking for the cloud and AI era, addresses the needs of both security and networking teams by providing optimized access and real-time, context-based security for the AI ecosystem inclusive of agents, applications, tools, LLMs, people, devices, and data. Thousands of customers, including more than 30 of the Fortune 100, trust the Netskope One platform, its Zero Trust Engine, and its powerful NewEdge network to reduce risk and gain full visibility and control over cloud, AI, SaaS, web, and private applications – providing security and accelerating performance without trade-offs. Learn more at
SANTA CLARA, Calif., June 02, 2026 (GLOBE NEWSWIRE) -- Netskope (NASDAQ: NTSK), a leader in modern security and networking for the cloud and AI era, today announced Netskope One AI Command Center, delivering comprehensive AI discovery, unified risk intelligence, and autonomous agentic response within a single unified platform. AI Command Center is the latest expansion of the Netskope One AI Security suite, further extending its capabilities to address the critical challenges security teams now face: identifying what AI is running, which risks actually matter, and how to respond at the speed the threat demands.
Among enterprises tracked by Netskope Threat Labs, the average enterprise organization saw the number of AI applications in use grow fivefold in the past year. That average organization tripled its AI user base; now manages 37 deployed AI agents; and sees 223 AI data policy violations per month1. Amidst this turbo-charged adoption, 94% of participating organizations report gaps in AI activity visibility and only 6% consider themselves to have complete visibility into their AI pipeline2.
Netskope One AI Command Center mitigates risk by discovering AI assets, whether corporate or personal, managed or shadow, cloud or on-premises, and mapping them to the identities, data stores and tools to which they connect. Once mapped, it surfaces risk insights and correlates them to Netskope’s existing knowledge banks relating to data sensitivity, user risk profiles, and application trustworthiness. By mapping relationships between AI assets, identities, and data stores, it surfaces hidden attack paths and risk exposures, and is able (from the same interface) to recommend next steps including creation or fine-tuning policy, remediation workflows, or investigation.
Along with the core AI Command Center capabilities and the discovery of AI via inline traffic inspection, the launch introduces two additional discovery components:
Endpoint AI discovery: Enhancements to the Netskope One Client extend scanning to installed applications, running processes, and listening ports on managed endpoints to identify known AI agents, local models, and browser extensions.Server AI discovery: A lightweight eBPF agent that intercepts TLS-encrypted AI traffic at the kernel level on corporate virtual machines and Kubernetes nodes, extending discovery to core AI infrastructure within the corporate perimeter. Also launching and fully integrated with the Netskope One AI Command Center is a new AgentSkope AI Risk AISecOps agent: an autonomous intelligence layer that handles triage and investigation, drives response, and scales a security team's expertise without scaling headcount.
Sanjay Beri, Co-Founder and CEO of Netskope commented: “Organizations have adopted AI faster than any security team can manually track, triage, or contain, and the tools nobody approved are almost always the ones carrying the highest risk. Netskope One AI Command Center gives security teams the unified operational view they have never had before: every AI asset in the environment, how it’s connected, what data it’s touching, and what to do about it. They can now say yes to team members who want to take full advantage of AI, and do it securely. Paired with our new AI Risk AISecOps Agent, which reasons across the full context of every incident and closes the gap between knowing and doing, we’re delivering a fundamental shift from security teams that react to AI risk, to security operations that anticipate and eliminate it.”
Jennifer Glenn, Research Director for Data and Information Security, IDC commented: “Enterprise AI adoption has skyrocketed. Data volume and sprawl have created a pervasive visibility gap for security teams. For many organizations effectively correlating risk across managed and shadow AI assets, user identities and data stores is difficult. Addressing this challenge requires moving beyond siloed tools to a unified intelligence layer. Platforms that combine comprehensive AI discovery with real-time risk correlation are essential for enabling security operations to anticipate, prioritize, and autonomously eliminate AI-fueled threats at the speed the landscape demands.”
Read more about Netskope One AI Command Center, the new agent, and the extended discovery capabilities in the Netskope blog.
Netskope One AI Command Center is generally available today, with enhanced capabilities, including endpoint AI discovery, server AI discovery, AI asset mapping and risk correlation, and the AI Risk AISecOps Agent moving from private preview to general availability throughout Q3 2026.
About Netskope
Netskope (NASDAQ: NTSK), a leader in modern security and networking for the cloud and AI era, addresses the needs of both security and networking teams by providing optimized access and real-time, context-based security for the AI ecosystem inclusive of agents, applications, tools, LLMs, people, devices, and data. Thousands of customers, including more than 30 of the Fortune 100, trust the Netskope One platform, its Zero Trust Engine, and its powerful NewEdge network to reduce risk and gain full visibility and control over cloud, AI, SaaS, web, and private applications – providing security and accelerating performance without trade-offs. Learn more at netskope.com, netskope.ai, on LinkedIn, and Instagram.
SANTA CLARA, Calif., June 02, 2026 (GLOBE NEWSWIRE) -- Netskope (NASDAQ: NTSK), a leader in modern security and networking for the cloud and AI era, is part of Project Glasswing, which uses Anthropic’s most advanced AI model, Mythos Preview, to find vulnerabilities in code at unprecedented speed and scale. Netskope has access to Anthropic’s Claude Mythos Preview, and will continue to share findings with the broader Glasswing coalition and the cybersecurity community.
Protecting and securing the use of AI is now an imperative for all organizations. The average enterprise organization saw the number of AI applications in use grow fivefold in the past year, with that organization tripling its AI user base, and seeing over 220 AI data policy violations per month1. Over 94% of organizations report gaps in AI activity visibility2.
Netskope is consistently recognized among a select group of security vendors as a trusted defender of critical, AI-ready enterprise infrastructure. Along with Glasswing and other recent announcements, Netskope will continue to collaborate with leading frontier AI models on important work designed to secure and defend organizations at AI speed.
“Netskope is the global inline inspection point for AI and all enterprise traffic for our customers, processing trillions of transactions across the world's largest organizations,” said Sanjay Beri, Co-Founder and CEO of Netskope. “The architectures and ecosystems that will carry enterprises forward are the ones built for real-time governance, and security that understands the language of the AI and cloud world. With that in mind, we are proud to be collaborating with Anthropic on Glasswing and other important initiatives.”
Read more from Sanjay Beri and Netskope in a new blog: “Netskope and Glasswing: Helping Protect and Secure AI at Scale.”
About Netskope
Netskope (NASDAQ: NTSK), a leader in modern security and networking for the cloud and AI era, addresses the needs of both security and networking teams by providing optimized access and real-time, context-based security for the AI ecosystem inclusive of agents, applications, tools, LLMs, people, devices, and data. Thousands of customers, including more than 30 of the Fortune 100, trust the Netskope One platform, its Zero Trust Engine, and its powerful NewEdge network to reduce risk and gain full visibility and control over cloud, AI, SaaS, web, and private applications – providing security and accelerating performance without trade-offs. Learn more at netskope.com, netskope.ai, on LinkedIn, and Instagram.
Annual Recurring Revenue increased 29% year-over-year to $845 millionQ1 revenue increased 28% year-over-year to $202 million SANTA CLARA, Calif., June 03, 2026 (GLOBE NEWSWIRE) -- Netskope, Inc. (NASDAQ:NTSK) a leader in modern security and networking for the cloud and AI era, today announced financial results for the first quarter of fiscal year 2027 ended April 30, 2026.
“We started fiscal year 2027 with strong ARR growth of 29% year-over-year, a testament to the critical role Netskope plays in securing the modern enterprise,” said Sanjay Beri, CEO of Netskope. “The rise of AI is exponentially increasing the pace and potency of attacks and the misuse of sensitive data, while most organizations deploying agents have little or no policy controls in place to do so securely. This is the era that Netskope was built for. Our fundamental right to win is rooted in the AI-native fabric of our extensive Netskope One platform, providing the semantic intent and context needed to secure broad AI usage including autonomous agents at scale. Netskope is empowering our customers to close the AI Security Gap without compromising performance. This deep technological moat differentiates us from our competitors and has strongly positioned us for the massive market opportunity created by the AI Supercycle.”
First Quarter Fiscal 2027 Financial Highlights
Annual Recurring Revenue (ARR): ARR grew 29% year-over-year to $845 million as of April 30, 2026.Revenue: Q1 revenue was $201.6 million, an increase of 28% year-over-year.Gross Profit and Margin: GAAP gross profit was $148.3 million for the first quarter of fiscal 2027, compared to $109.5 million for the first quarter of fiscal 2026, and GAAP gross margin was 74%, compared to 69% for the first quarter of fiscal 2026. Non-GAAP gross profit was $154.6 million, compared to $116.1 million for the first quarter of fiscal 2026, and non-GAAP gross margin was 77%, compared to 74% for the first quarter of fiscal 2026.Loss from Operations and Operating Margin: GAAP loss from operations was ($108.7) million in the first quarter of fiscal 2027, compared to a loss of ($45.4) million for the first quarter of fiscal 2026, and GAAP operating margin was (54%), compared to (29%) for the first quarter of fiscal 2026. Non-GAAP loss from operations was ($29.2) million, compared to a loss of ($28.6) million for the first quarter of fiscal 2026, and non-GAAP operating margin was (14%), compared to (18%) for the first quarter of fiscal 2026.Net Loss Per Share: GAAP net loss per share was ($0.29) in the first quarter of fiscal 2027, compared to ($0.76) in the first quarter of fiscal 2026. Non-GAAP net loss per share was ($0.06), compared to ($0.28) in the first quarter of fiscal 2026.Cash Flow: Net cash used in operations was ($53.9) million in the first quarter of fiscal 2027, compared to $25.6 million provided by operations in the first quarter of fiscal 2026. Free cash flow was ($57.2) million, compared to $17.5 million in the first quarter of fiscal 2026 and free cash flow margin was (28%), compared to 11% in the first quarter of fiscal 2026.Cash, Cash Equivalents, and Marketable Securities: Total cash, cash equivalents, and marketable securities at the end of the first quarter of fiscal 2027 was $1.1 billion. Recent Business Highlights
Announced the Launch of Netskope One AgentSkope, an architectural foundation that allows organizations to easily deploy Netskope AI agents capable of running end-to-end security and networking workflows autonomously to assist security and networking teams bogged down by capacity constraints, complexity and manual triage, freeing up skilled staff to focus on strategic initiatives. The initial launch includes six agents: Netskope DLP AISecOps AgentNetskope Insider Threat AISecOps AgentNetskope Private Access AIOps AgentNetskope DEM Data Intelligence AgentNetskope DEM Insights AgentNetskope CCI Insights Agent Announced the Launch of Netskope AI Command Center, bringing end-to-end operational intelligence that broadens and unifies how customers discover AI, manage risks, and autonomously remediate issues across the entire enterprise AI ecosystem.Additionally, Netskope announced an expanded Global Partnership with Deloitte to Deliver Managed SASE Services. Deloitte will leverage Netskope technology to provide managed SASE capabilities to enterprises seeking to transform their infrastructure, modernize security and networking, and drive secure AI adoption. We also announced new and expanded collaborations across AI security:
Joining Anthropic’s Project Glasswing, using Anthropic’s most advanced AI model, Claude Mythos, to find vulnerabilities in code at unprecedented speed and scale while working together to secure and defend organizations at AI speed.Integrating with Anthropic’s Compliance API, which enables organizations to build security directly into their Claude workflows. By surfacing Claude activity within the Netskope One Platform, organizations can govern Claude using the same risk frameworks, DLP profiles, and compliance controls they already operate, without adding operational overhead.Participating in OpenAI’s Trusted Access for Cyber program, which includes access to GPT-5.5-Cyber in limited preview. We view this as a vital force multiplier that turns AI potential into immediate operational impact, accelerating time from novel attack behavior to stronger protections for the thousands of enterprises that rely on Netskope today.Announcing Netskope AI Guardrails Solution Powered by Google Cloud TPUs to deliver performance and security for AI workflows. The new solution uses Netskope One AI Guardrails to enable enterprise deployment of high-performance generative AI and autonomous agentic workflows at scale on Google Cloud. Planned CFO Transition
Additionally, as a next step in Netskope's long-term succession planning process, Chief Financial Officer Drew Del Matto - working closely with the CEO & Board of Directors - has announced his intention to retire following a distinguished 40-year career, including seven years helping guide Netskope through a period of significant growth and transformation. To ensure a seamless leadership transition, Mr. Del Matto intends to remain in his current role as CFO while the Company conducts a comprehensive search for his successor, and then to transition to an advisory role for a period thereafter.
Financial Outlook
Netskope is providing the following guidance for the second quarter and full year fiscal 2027:
For the second quarter of fiscal 2027, we expect:
Revenue of $213 million to $215 million, representing approximately 25% to 26% growth year-over-yearNon-GAAP operating margin of approximately (14%) to (15%)Non-GAAP net loss per share of ($0.06) to ($0.07), using approximately 410 million weighted average common stock outstanding For the full year of fiscal 2027, we now expect:
Total revenue of $879 million to $883 million, representing approximately 24% to 25% growth year-over-yearNon-GAAP gross margin of approximately 77%Non-GAAP operating margin of approximately (9.5%) to (10.0%)Non-GAAP net loss per share of ($0.18), using approximately 415 million weighted average common stock outstandingFree cash flow margin of 2% to 4% These statements are forward-looking, and actual results may differ materially. Refer to the Forward-Looking Statements safe harbor below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.
A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, reconciling items that may be incurred in the future, such as stock-based compensation and related employer payroll taxes, the effect of which may be significant.
Conference Call
Netskope will host a conference call at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time today to discuss its financial results and outlook. The conference call will be available via live webcast and replay at the Investor Relations section of Netskope’s website at investors.netskope.com.
Supplemental Financial and Other Information:
Supplemental financial information can be accessed through Netskope’s investor relations website at investors.netskope.com.
Conference Participation Schedule
Netskope will participate and present at the following upcoming investor conferences. Details of the events are as follows:
FBN Virtual Conference - Friday, June 5, 2026, 11:00 a.m. Pacific Time / 2:00 p.m. Eastern Time
Mizuho Technology Conference, New York, NY - Wednesday, June 10, 2026. 1:05 p.m. Eastern Time About Netskope
Netskope (NASDAQ: NTSK), a leader in modern security and networking for the cloud and AI era, addresses the needs of both security and networking teams by providing optimized access and real-time, context-based security for the AI ecosystem inclusive of agents, applications, tools, LLMs, people, devices, and data. Thousands of customers, including more than 30 of the Fortune 100, trust the Netskope One platform, its Zero Trust Engine, and its powerful NewEdge network to reduce risk and gain full visibility and control over cloud, AI, SaaS, web, and private applications – providing security and accelerating performance without trade-offs. Learn more at netskope.com, netskope.ai, on LinkedIn, and Instagram.
Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties, including, but not limited to, statements regarding our future financial and operating performance, including our GAAP and non-GAAP guidance and financial outlook for the second quarter of fiscal 2027 and full year fiscal 2027, the market opportunity created by AI and the demand for AI security products. There are a significant number of factors that could cause actual results to differ materially from statements made in this press release, including but not limited to: macroeconomic influences and instability, geopolitical events, operations and financial results and the economy in general; risks associated with scaling our business and managing our rapid growth; our ability to expand our partner relationships; our ability to identify and effectively implement the necessary changes to address execution challenges; our limited experience with new products and the risks associated with new product offerings, including adoption by customers and the discovery of software bugs; our ability to attract and retain new customers; the failure to timely develop and achieve market acceptance of new products as well as existing products; rapidly evolving technological developments in the market for security, networking, analytics and AI products and our ability to innovate and remain competitive; length of sales cycles; risks related to the use of AI in our platform; and general market, political, economic and business conditions, as well as those risks and uncertainties included in filings we make with the Securities and Exchange Commission from time to time.
All forward-looking statements in this press release are based on information available to Netskope as of the date hereof, and we undertake no obligation to update these forward-looking statements, to review or confirm analysts’ expectations, or to provide interim reports or updates on the progress of the current financial quarter.
Non-GAAP Financial Measures
In addition to GAAP financial measures, this press release includes non-GAAP financial measures that we use to evaluate our business performance, identify trends affecting our business, formulate business plans and make strategic decisions. These non-GAAP financial measures include non-GAAP gross profit, non-GAAP gross margin, non-GAAP loss from operations, non-GAAP operating margin, non-GAAP net loss, non-GAAP net loss per share, free cash flow and free cash flow margin, and their respective definitions are presented below.
There are limitations to the non-GAAP financial measures included in this press release, and they may not be comparable to similarly titled measures of other companies. The non-GAAP financial measures included in this press release should not be considered in isolation from or as a substitute for their most directly comparable GAAP financial measures. Our management believes that our non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain expenses and income that may not be indicative of our ongoing core operating performance. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when analyzing historical performance and liquidity and when planning, forecasting and analyzing future periods.
For a reconciliation of the non-GAAP financial measures presented for historical periods to their most directly comparable GAAP financial measures, please see the tables captioned "Reconciliation of GAAP to Non-GAAP Financial Information" included at the end of this press release. We encourage you to review the reconciliation in conjunction with the presentation of the non-GAAP financial measures for each of the periods presented. In future periods, we may exclude similar items, may incur income and expenses similar to these excluded items and may include other expenses, costs and non-recurring items.
Non-GAAP Gross Profit and Non-GAAP Gross Margin
We define non-GAAP gross profit as GAAP gross profit excluding stock-based compensation expense and related taxes, and amortization of acquired intangible assets. We define non-GAAP gross margin as non-GAAP gross profit as a percentage of revenue.
Non-GAAP Loss from Operations and Non-GAAP Operating Margin
We define non-GAAP loss from operations as GAAP loss from operations excluding stock-based compensation expense and related taxes and amortization of acquired intangible assets. We define non-GAAP operating margin as non-GAAP loss from operations as a percentage of revenue.
Non-GAAP Net Loss
We define non-GAAP net loss as GAAP net loss adjusted to exclude stock-based compensation expense and related taxes, amortization of acquired intangible assets, gain or loss on fair value changes in convertible notes, and non-GAAP provision for (benefit from) income taxes.
Non-GAAP Net Loss Per Share
We define non-GAAP net loss per share as GAAP net loss per share adjusted to exclude stock-based compensation expense and related taxes, amortization of acquired intangible assets, gain or loss on fair value changes in convertible notes, and non-GAAP provision for (benefit from) income taxes.
Free Cash Flow and Free Cash Flow Margin
We define free cash flow as net cash provided by (used in) operating activities less purchase of property and equipment and capitalized internal-use software. Free cash flow margin is determined by dividing free cash flow by revenue. We believe free cash flow and free cash flow margin serve as valuable indicators of liquidity, as it provides our management, board of directors, and investors with insight into our ability to generate cash from our operations, strategic initiatives, and strengthening our balance sheet.
ARR
We define ARR as the annualized value of our cloud subscription contracts that are active as of the measurement date, assuming any contract that expires during the next 12 months is renewed on its existing terms. Provided that we are actively negotiating a renewal or new agreement with a customer after the expiration of a contract, we continue to include that contract's annualized value in ARR until the customer notifies us of their decision not to renew. ARR excludes non-recurring components of revenue such as professional services, training, sales of hardware, and other non-recurring revenue.
NETSKOPE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
April 30, January 31, 2026 2026 Assets Current assets: Cash and cash equivalents$205,850 $432,583 Marketable securities 897,338 725,603 Accounts receivable, net 136,131 158,278 Inventories 5,226 4,902 Deferred contract acquisition costs 55,089 54,048 Prepaid expenses and other current assets 71,725 73,553 Total current assets 1,371,359 1,448,967 Property and equipment, net 91,859 93,876 Operating lease right-of-use assets 31,258 32,096 Intangible assets, net 21,248 21,403 Goodwill 61,083 61,083 Deferred contract acquisition costs, noncurrent 101,139 100,798 Other assets, noncurrent 13,061 14,069 Total assets$1,691,007 $1,772,292 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable$23,867 $14,436 Accrued compensation and benefits 55,627 99,880 Deferred revenue 520,602 532,732 Operating lease liabilities, current 9,945 10,769 Accrued expenses and other current liabilities 22,227 23,715 Total current liabilities 632,268 681,532 Deferred revenue, noncurrent 132,234 143,126 Convertible notes 713,321 720,960 Operating lease liabilities, noncurrent 23,339 23,424 Other liabilities, noncurrent 14,329 8,719 Total liabilities 1,515,491 1,577,761 Stockholders’ equity: Preferred stock - - Class A common stock 6 6 Class B common stock 34 34 Additional paid-in capital 2,967,830 2,888,202 Accumulated other comprehensive loss (46,958) (64,811) Accumulated deficit (2,745,396) (2,628,900) Total stockholders’ equity 175,516 194,531 Total liabilities and stockholders’ equity$1,691,007 $1,772,292 NETSKOPE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
(unaudited)
Three Months Ended April 30, 2026
2025
Revenue$201,592 $157,736 Cost of revenue(1) 53,337 48,223 Gross profit 148,255 109,513 Operating expenses: Sales and marketing(1) 105,682 69,376 Research and development(1) 105,714 67,881 General and administrative(1) 45,596 17,614 Total operating expenses 256,992 154,871 Loss from operations (108,737) (45,358) Other income (expense), net: Loss on changes in fair value of convertible notes (12,225) (33,429) Other income, net 7,522 1,999 Loss before provision for income taxes (113,440) (76,788) Provision for income taxes 3,056 2,454 Net loss$(116,496) $(79,242) Net loss per share attributable to common stockholders, basic and diluted$(0.29) $(0.76) Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted 400,493,597 104,706,962 (1)Includes stock-based compensation expense as follows: Cost of revenue$3,997 $506 Sales and marketing 14,364 3,373 Research and development 31,235 5,308 General and administrative 26,432 904 Total stock-based compensation expense$76,028 $10,091 NETSKOPE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Three Months Ended April 30, 2026 2025 Cash flows from operating activities Net loss$(116,496) $(79,242) Adjustments to reconcile net loss to net cash (used in) provided by operating activities: Stock-based compensation expense 76,028 10,091 Depreciation and amortization 10,059 13,929 Amortization of deferred contract acquisition costs 15,336 12,313 Non-cash operating lease expenses 3,607 3,147 (Accretion of discount) amortization of premium on investments (2,069) (274) Loss on changes in fair value of convertible notes 12,225 33,429 Deferred income tax benefit - (84) Other (18) 30 Changes in operating assets and liabilities: Accounts receivable 22,147 79,656 Inventories (364) 103 Deferred contract acquisition costs (16,718) (13,492) Prepaid expenses and other current assets 873 (5,953) Other non-current assets 118 (2,195) Accounts payable 8,019 2,833 Accrued compensation and benefits (43,632) (26,477) Operating lease liabilities (3,678) (2,781) Accrued expenses and other current liabilities (1,938) 4,607 Deferred revenue (23,022) (4,690) Other non-current liabilities 5,610 642 Net cash (used in) provided by operating activities (53,913) 25,592 Cash flows from investing activities Purchases of property and equipment (2,159) (7,410) Capitalized internal-use software (1,094) (726) Purchases of intangible assets (2,300) - Purchases of marketable securities (444,973) (8,214) Proceeds from maturities of marketable securities 273,347 37,865 Net cash (used in) provided by investing activities (177,179) 21,515 Cash flows from financing activities Proceeds from issuance of common stock under employee stock purchase plan 12,272 - Proceeds from issuance of common stock upon exercise of stock options 5,820 6,604 Payments for withholding taxes upon settlement of equity awards (14,623) - Payments for holdback consideration on business combination - (1,197) Payments for deferred offering costs - (666) Net cash provided by financing activities 3,469 4,741 Net (decrease) increase in cash, cash equivalents, and restricted cash (227,623) 51,848 Cash, cash equivalents, and restricted cash, beginning of period 433,769 167,197 Cash, cash equivalents, and restricted cash, end of period$206,146 $219,045 NETSKOPE, INC.
RECONCILIATION OF GAAP To NON-GAAP FINANCIAL INFORMATION
(in thousands, except percentages and per share data)
(unaudited)
Three Months Ended April 30,
2026
2025
Gross profit reconciliation: Gross profit$148,255 $109,513 Stock-based compensation expense and related taxes 4,067 520 Amortization of acquired intangible assets 2,309 6,082 Non-GAAP gross profit$154,631 $116,115 Gross margin 74% 69% Non-GAAP gross margin 77% 74% Sales and marketing expense reconciliation: Sales and marketing expense$105,682 $69,376 Stock-based compensation expense and related taxes (14,728) (3,403) Amortization of acquired intangible assets (146) (516) Non-GAAP sales and marketing expense$90,808 $65,457 Sales and marketing expense as a percentage of revenue 52% 44% Non-GAAP sales and marketing expense as a percentage of revenue 45% 41% Research and development expense reconciliation: Research and development expense$105,714 $67,881 Stock-based compensation expense and related taxes (31,643) (5,345) Non-GAAP research and development expense$74,071 $62,536 Research and development expense as a percentage of revenue 52% 43% Non-GAAP research and development expense as a percentage of revenue 37% 40% General and administrative expense reconciliation: General and administrative expense$45,596 $17,614 Stock-based compensation expense and related taxes (26,642) (905) Non-GAAP general and administrative expense$18,954 $16,709 General and administrative expense as a percentage of revenue 23% 11% Non-GAAP general and administrative expense as a percentage of revenue 9% 11% Loss from operations reconciliation: Loss from operations$(108,737) $(45,358) Stock-based compensation expense and related taxes 77,080 10,173 Amortization of acquired intangible assets 2,455 6,598 Non-GAAP loss from operations$(29,202) $(28,587) Operating margin (54)% (29)% Non-GAAP operating margin (14)% (18)% Net loss reconciliation: Net loss$(116,496) $(79,242) Stock-based compensation expense and related taxes 77,080 10,173 Amortization of acquired intangible assets 2,455 6,598 Loss on fair value changes in convertible notes 12,225 33,429 Provision for income taxes 297 - Non-GAAP net loss$(24,439) $(29,042) Basic and diluted EPS reconciliation: Net loss per share, basic and diluted$(0.29) $(0.76) Stock-based compensation expense and related taxes 0.19 0.10 Amortization of acquired intangible assets 0.01 0.06 Loss on fair value changes in convertible notes 0.03 0.32 Provision for income taxes - - Non-GAAP net loss per share, basic and diluted$(0.06) $(0.28) Note: Certain figures may not sum due to rounding. NETSKOPE, INC.
SELECTED CASH FLOW INFORMATION
(in thousands, except percentages)
(unaudited)
Three Months Ended April 30,
2026 2025 Reconciliation of cash (used in) provided by operating activities to free cash flow Net cash (used in) provided by operating activities$(53,913) $25,592 Purchase of property and equipment (2,159) (7,410) Capitalized internal-use software (1,094) (726) Free cash flow$(57,166) $17,456 Net cash (used in) provided by investing activities$(177,179) $21,515 Net cash provided by financing activities$3,469 $4,741 Operating cash flow margin (27)% 16% Free cash flow margin (28)% 11% Note: Certain figures may not sum due to rounding.
Netskope NASDAQ: NTSK reported first-quarter fiscal 2027 revenue above its guidance and raised its full-year revenue outlook, as executives said demand remains healthy for the company’s cloud security, networking and emerging AI security products.
Chief Executive Officer and Co-Founder Sanjay Beri said customers are continuing digital and AI transformations and are turning to Netskope as they reassess legacy security and networking architectures. “Our results demonstrate that as customers are continuing their digital and AI transformations, moving to leverage AI in the cloud, and readying themselves for the reality of a large amount of autonomous AI agents in their environments, Netskope is a mission-critical innovative partner for now and the future,” Beri said.
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Revenue Tops Guidance as ARR Grows 29% Netskope ended the quarter with annual recurring revenue, or ARR, of $845 million, up 29% year over year. Net new ARR was $34 million, compared with $39 million in the same quarter last year. Revenue rose 28% year over year to $201.6 million, ahead of the company’s guidance.
CFO Drew Del Matto said revenue growth was broad-based across regions. Revenue in the Americas increased 27%, EMEA grew 31%, and APJ grew 25%. Remaining performance obligations rose 33% year over year to more than $1.2 billion, while contracted future billings increased 71%.
The company reported a net retention rate of 113% for the quarter. Beri said gross retention reached the highest level in the company’s history, adding that Netskope has consistently operated with gross retention rates above the mid-90% range.
Netskope also cited continued growth among larger customers. The number of customers generating more than $100,000 in ARR increased 23% year over year to 1,600, and Del Matto said those customers account for more than 85% of total ARR. Platform adoption broadened as well, with 57% of customers using four or more Netskope One products, up from 49% a year earlier. Customers using six or more products increased to 28% from 23%.
Margins Improve, Cash Flow Remains in Transition Gross margin was 77%, up about three percentage points from the year-ago quarter. Operating margin improved four percentage points year over year to negative 14%, also ahead of guidance. The company reported a non-GAAP net loss of $0.06 per share, based on 400 million weighted average shares outstanding.
Free cash flow was negative $57 million, which Del Matto said was in line with guidance as Netskope continues transitioning customers with multiyear contracts to annual billing. He said the company expects the first quarter to be the low point of that transition, with free cash flow improving in the second quarter and returning to positive quarterly free cash flow in the back half of the year.
Company Raises Full-Year Revenue Outlook For the second quarter of fiscal 2027, Netskope guided for revenue of $213 million to $215 million, representing growth of about 25% at the midpoint. The company expects an operating margin of approximately negative 14% to negative 15% and a net loss of $0.06 to $0.07 per share.
For the full fiscal year, Netskope now expects revenue of $879 million to $883 million, or roughly 24% growth at the midpoint. The company also forecast gross margin of about 77%, operating margin of negative 9.5% to negative 10%, a net loss of $0.18 per share, and positive free cash flow margin of 2% to 4%.
Del Matto said the company raised its full-year revenue outlook by more than the amount of the first-quarter revenue beat, reflecting management’s confidence in demand. He said Netskope still expects ARR growth to be within one point of revenue growth.
AI Security Products Drive Pipeline Commentary Beri devoted much of the call to the company’s positioning around AI security. He said conversations with CIOs and CISOs increasingly center on safely and compliantly adopting AI at enterprise scale. Netskope’s AI Index shows that the average Global 2000 company tracked by the company uses more than 140 AI applications, and about 90% of AI usage is led by business units rather than IT.
The company recently introduced several AI-focused products, including AI Gateway, AI Guardrails, Agentic Broker and Red Teaming. Beri said those products are priced per transaction, defined as each prompt and response. He also discussed the newly announced AI Command Center, which is intended to provide visibility across an organization’s AI footprint, connect AI assets and data flows into a real-time view of risk, and recommend remediation actions.
“These new AI security products generated significant excitement and early pipeline right out of the gate, translating into some initial early deals closed with beta customers,” Beri said. He cited a U.S. fintech customer that purchased the full AI security suite and a large U.S. bank that deployed AI Guardrails for real-time visibility, data loss prevention enforcement, user behavior analytics and inline threat protection.
During the question-and-answer session, Beri said Netskope’s AI security product pipeline is the fastest-growing pipeline the company has seen for any new product category. He also said Netskope maintains an over 80% win rate when it reaches proof-of-value or proof-of-concept stages.
CFO Announces Planned Retirement The company also announced that Del Matto plans to retire after more than seven years with Netskope. Beri said Del Matto will continue serving as CFO during the search for a successor and will transition to an advisory role afterward.
“During his tenure, he has played a critical role in helping us scale to where we are today, including leading the company through its recent IPO, strengthening our financial and strategic foundation, and building a world-class finance organization,” Beri said.
Del Matto said it has been “one of the great privileges” of his career to be part of Netskope’s growth, noting that the company scaled from approximately $70 million of ARR to its current level during his tenure. He said he remains fully committed through the transition.
Executives said sales capacity remains a key factor for the remainder of the year. Beri said about half of Netskope’s sales representatives are newly hired or still ramping, and Del Matto said the company expects a larger portion of net new ARR to come in the second half of fiscal 2027 as those representatives become more productive.
About Netskope NASDAQ: NTSKWe are redefining security and networking for the era of cloud and AI. The cloud and AI have completely revolutionized work. We are more dispersed, more productive, and more automated than ever before, and the rate of change is only accelerating. Not since the internet has there been such a transformative tectonic shift. But, with it has come collateral damage-traditional security and networking are now broken. We founded Netskope to address this revolution. We built Netskope One, our unified, cloud-native platform from the ground up to solve the challenge of securing and accelerating the digital interactions of enterprises in this new era.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
Should You Invest $1,000 in Netskope Right Now?Before you consider Netskope, you'll want to hear this.
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Netskope remains a buy despite a sharp post-earnings selloff and ongoing investor skepticism about profitability. NTSK addresses a $336 billion TAM, with only ~1% penetration and ~30% revenue growth, signaling robust execution in AI-driven cybersecurity. Gartner recognizes NTSK as a market leader in AI security platforms, supporting confidence in its competitive positioning.
AI-focused cybersecurity stock Netskope (NTSK 5.89%) tumbled to close down 19.1% Thursday despite beating on sales and earnings in its fiscal Q1 2027 earnings report last night.
Analysts forecast Netskope to lose $0.07 per share, adjusted for one-time items, on $198.2 million in revenue. Netskope did lose money for the quarter, but only $0.06 per share, and sales came in at $201.6 million.
Image source: Getty Images.
Netskope Q1 earnings Sales grew 28% year over year, and if all continues to go as it's going, the company is on track to report annual recurring revenue growth of 29%. Not all of Netskope's news was good, however.
There's the quarterly loss for one thing. And for another, the loss was larger when earnings are calculated under generally accepted accounting principles rather than pro forma. Netskope's lost $0.29 per share, GAAP -- nearly five times the pro forma loss.
Worst of all, one year ago, while still losing money, Netskope was at least generating positive free cash flow. Now it isn't. Netskope burned $57.2 million in Q1.
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What's next for Netskope stock The good news is that as the year progresses, Netskope hopes to turn things around somewhat. Q2 sales are expected to grow about 6% sequentially to $214 million (although Netskope will continue to lose money). By the end of fiscal 2027, management hopes to book $881 million or so in revenue, still lose money, but on the bright side, return to generating positive free cash flow, and close out the year with roughly $26 million in cash profit.
Will that be enough to support the stock's $4 billion market capitalization, though, even with revenue growing in the double digits? Considering how the stock price suffered today, most investors seem to think the answer is: No.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
In the first quarter of 2026, Baron Discovery Fund declined 10.65% (Institutional Shares), trailing the Russell 2000 Growth Index by 7.84% due to significant underperformance in the software sector. Advanced Energy Industries, Inc.'s stock rose during the quarter as the market began to appreciate the strength that the company would see in both its data center and semiconductor end markets. Baron Discovery Fund sold its investment in Intapp, Inc. in the quarter as the team believes that its other software holdings have better overall competitive advantages.
In the latest close session, Blue Bird (BLBD - Free Report) was down 2.03% at $57.44. The stock trailed the S&P 500, which registered a daily gain of 0.44%. Meanwhile, the Dow gained 0.36%, and the Nasdaq, a tech-heavy index, added 0.54%.
The school bus maker's stock has climbed by 7.11% in the past month, exceeding the Auto-Tires-Trucks sector's loss of 7.14% and the S&P 500's loss of 3.31%.
Analysts and investors alike will be keeping a close eye on the performance of Blue Bird in its upcoming earnings disclosure. In that report, analysts expect Blue Bird to post earnings of $0.81 per share. This would mark a year-over-year decline of 15.63%.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.56 per share and revenue of $0 million. These totals would mark changes of +4.11% and 0%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Blue Bird. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 7.75% higher. At present, Blue Bird boasts a Zacks Rank of #2 (Buy).
Investors should also note Blue Bird's current valuation metrics, including its Forward P/E ratio of 12.87. This denotes a discount relative to the industry average Forward P/E of 13.31.
We can additionally observe that BLBD currently boasts a PEG ratio of 2.16. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Automotive - Domestic was holding an average PEG ratio of 0.99 at yesterday's closing price.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 193, which puts it in the bottom 21% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Blue Bird (BLBD - Free Report) .
Blue Bird currently has an average brokerage recommendation (ABR) of 1.38, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by eight brokerage firms. An ABR of 1.38 approximates between Strong Buy and Buy.
Of the eight recommendations that derive the current ABR, six are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 75% and 12.5% of all recommendations.
Brokerage Recommendation Trends for BLBD
Check price target & stock forecast for Blue Bird here>>>
The ABR suggests buying Blue Bird, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Should You Invest in BLBD?In terms of earnings estimate revisions for Blue Bird, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $4.56.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Blue Bird. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Blue Bird.
Blue Bird (BLBD - Free Report) ended the recent trading session at $64.46, demonstrating a +2.23% change from the preceding day's closing price. The stock outpaced the S&P 500's daily gain of 1.02%. Meanwhile, the Dow experienced a rise of 0.63%, and the technology-dominated Nasdaq saw an increase of 1.23%.
Shares of the school bus maker have appreciated by 18.11% over the course of the past month, outperforming the Auto-Tires-Trucks sector's loss of 7.41%, and the S&P 500's gain of 0.63%.
The investment community will be closely monitoring the performance of Blue Bird in its forthcoming earnings report. On that day, Blue Bird is projected to report earnings of $0.81 per share, which would represent a year-over-year decline of 15.63%.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.56 per share and a revenue of $0 million, indicating changes of +4.11% and 0%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Blue Bird. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Blue Bird is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Blue Bird's current valuation metrics, including its Forward P/E ratio of 13.84. This represents a discount compared to its industry average Forward P/E of 15.82.
Meanwhile, BLBD's PEG ratio is currently 2.33. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Automotive - Domestic industry stood at 1.07 at the close of the market yesterday.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 192, which puts it in the bottom 22% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
MACON, Ga.--(BUSINESS WIRE)--Blue Bird Corporation (Nasdaq: BLBD), the leader in electric and low-emission school buses, has announced the appointment of Lyndon Lie as senior vice president of engineering. In this role, Lie will oversee all engineering functions across Blue Bird's platforms to support the company's long-term growth strategy. Lie will be responsible for leading product development, platform engineering, innovation and execution. He will also manage the integration of engineering.
Blue Bird Corporation (NASDAQ:BLBD – Get Free Report)’s share price reached a new 52-week high during mid-day trading on Wednesday . The stock traded as high as $65.47 and last traded at $64.91, with a volume of 370613 shares. The stock had previously closed at $64.46.
Analyst Upgrades and Downgrades Several research firms have recently issued reports on BLBD. Needham & Company LLC raised their target price on shares of Blue Bird from $70.00 to $78.00 and gave the stock a “buy” rating in a report on Thursday, February 5th. Barclays raised their target price on shares of Blue Bird from $50.00 to $55.00 and gave the stock an “overweight” rating in a report on Thursday, February 5th. Wall Street Zen lowered shares of Blue Bird from a “strong-buy” rating to a “buy” rating in a report on Saturday, February 7th. BTIG Research restated a “buy” rating and issued a $65.00 target price on shares of Blue Bird in a report on Thursday, February 5th. Finally, Zacks Research lowered shares of Blue Bird from a “strong-buy” rating to a “hold” rating in a report on Friday, March 6th. Six research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat, Blue Bird has a consensus rating of “Moderate Buy” and an average price target of $67.20.
View Our Latest Analysis on BLBD
Blue Bird Stock Performance The company has a debt-to-equity ratio of 0.31, a quick ratio of 1.21 and a current ratio of 1.81. The firm has a market cap of $2.05 billion, a P/E ratio of 16.39, a price-to-earnings-growth ratio of 2.40 and a beta of 1.40. The firm’s fifty day moving average price is $57.52 and its 200 day moving average price is $53.66.
Blue Bird (NASDAQ:BLBD – Get Free Report) last posted its quarterly earnings results on Wednesday, February 4th. The company reported $1.00 EPS for the quarter, beating the consensus estimate of $0.80 by $0.20. Blue Bird had a net margin of 8.65% and a return on equity of 57.60%. The business had revenue of $333.08 million during the quarter, compared to analyst estimates of $325.74 million. During the same quarter in the previous year, the business posted $0.92 EPS. The company’s quarterly revenue was up 6.1% compared to the same quarter last year. Sell-side analysts expect that Blue Bird Corporation will post 3.86 EPS for the current fiscal year.
Insider Activity In other news, CFO Razvan Radulescu sold 3,925 shares of the business’s stock in a transaction dated Thursday, February 19th. The shares were sold at an average price of $60.98, for a total value of $239,346.50. Following the completion of the sale, the chief financial officer owned 42,255 shares in the company, valued at approximately $2,576,709.90. The trade was a 8.50% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, COO Jeffrey Scott Sanfrey sold 5,192 shares of the business’s stock in a transaction dated Wednesday, March 4th. The shares were sold at an average price of $58.54, for a total transaction of $303,939.68. Following the completion of the sale, the chief operating officer owned 39,011 shares of the company’s stock, valued at approximately $2,283,703.94. This represents a 11.75% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 1.10% of the company’s stock.
Institutional Investors Weigh In On Blue Bird Several large investors have recently modified their holdings of the business. ProShare Advisors LLC grew its position in shares of Blue Bird by 6.9% in the 4th quarter. ProShare Advisors LLC now owns 5,793 shares of the company’s stock worth $272,000 after buying an additional 372 shares during the last quarter. Brooklyn Investment Group grew its position in shares of Blue Bird by 8.7% in the 4th quarter. Brooklyn Investment Group now owns 5,208 shares of the company’s stock worth $261,000 after buying an additional 417 shares during the last quarter. R Squared Ltd grew its position in shares of Blue Bird by 11.0% in the 4th quarter. R Squared Ltd now owns 4,464 shares of the company’s stock worth $210,000 after buying an additional 443 shares during the last quarter. HighTower Advisors LLC grew its position in shares of Blue Bird by 0.7% in the 3rd quarter. HighTower Advisors LLC now owns 67,007 shares of the company’s stock worth $3,856,000 after buying an additional 453 shares during the last quarter. Finally, Rockefeller Capital Management L.P. grew its position in shares of Blue Bird by 210.0% in the 4th quarter. Rockefeller Capital Management L.P. now owns 775 shares of the company’s stock worth $36,000 after buying an additional 525 shares during the last quarter. Institutional investors own 93.59% of the company’s stock.
About Blue Bird (Get Free Report)
Blue Bird Corporation (NASDAQ: BLBD) is a leading manufacturer of buses and mass transportation vehicles headquartered in Fort Valley, Georgia. The company’s core business encompasses the design, engineering, and production of school buses and activity buses, with a product lineup that includes conventional (Type C) models, transit-style (Type D) models and specialty configurations for special-needs and activity transport. In recent years, Blue Bird has expanded its offerings to include zero-emission electric school buses, reflecting its commitment to advanced propulsion technologies and environmental sustainability.
Established in 1927, Blue Bird has built a legacy of safety and reliability in student transportation.
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On April 16, 2026, Blue Bird Corp BLBD shares fell 4.8% to a current price of $59.13. This decline comes amid a 52-week range that saw the stock hit a high of $65.47 and a low of $32.61. The recent price drop is notable, especially considering the stock's strong performance year-to-date, up 25.8%, and a remarkable 77.8% increase over the past year.
GF Value™ verdict: Current price is $59.13, compared to GF Value™ of $44.21, indicating the stock is 33.7% overvalued.GF Score™: 83/100 (Strong), suggesting solid fundamentals and potential for long-term performance.Most notable signal: Insider activity shows that insiders sold $0.5M worth of shares in the last three months, indicating a lack of buying interest. Is BLBD Overvalued or Undervalued? Based on the current price of $59.13 and the GF Value™ estimate of $44.21, Blue Bird Corp appears to be significantly overvalued, with a margin of safety of approximately 33.7%. The GF Valuation label indicates that the stock is "Significantly Overvalued," which presents a risk for potential investors. The difference between the market price and the intrinsic value suggests that the stock may be trading at a premium, which can expose investors to price corrections if market sentiments shift.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. The current overvaluation raises concerns about the sustainability of the stock price, especially in light of today's drop and the recent insider selling activity, which can be a red flag for investors looking for confidence in management's outlook.
How Does BLBD's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 14.9x 15.1x Forward P/E 12.7x N/A The current P/E (TTM) of 14.9x is slightly below its 5-year median P/E of 15.1x, suggesting that while the stock is currently priced reasonably relative to its historical average, it is still elevated when considering the GF Value™ verdict. This P/E analysis aligns with the conclusion of overvaluation indicated by the GF Value™, reinforcing the notion that the stock may not offer a compelling value at its current price level.
What Does BLBD's GF Score™ Tell Us? Metric Rating GF Score™ 83 Financial Strength 8/10 Profitability 7/10 Growth 6/10 Valuation 5/10 Momentum 10/10 The GF Score™ of 83/100 indicates that Blue Bird Corp is positioned favorably when it comes to its overall fundamentals, with strong financial strength (8/10) and profitability (7/10) scores. However, the valuation score (5/10) indicates that while the company has solid growth prospects, its current valuation may not reflect its intrinsic worth. The high momentum rank (10/10) suggests that the stock has seen positive price trends, but this may not be enough to justify the current price when weighed against the overall valuation context.
What Are Insiders Doing with BLBD Stock? In the last three months, insiders have sold $0.5 million worth of shares, with no reported buying activity. This pattern may suggest a lack of confidence from management regarding the stock's future performance or potential valuation. Insider selling can often be interpreted as a cautionary signal, indicating that those closest to the company may not expect significant price appreciation in the near term.
While insider activity alone should not determine investment decisions, it is an important factor to consider alongside other metrics and overall market sentiment.
What This Means for Investors Based on the analysis of GF Value™, Blue Bird Corp appears to be overvalued at its current price of $59.13, with a significant 33.7% margin over the estimated intrinsic value of $44.21. Given the signs of potential risk from insider selling and the overall valuation context, investors may want to approach this stock with caution.
For the complete analysis, visit the Blue Bird Corp BLBD stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is BLBD's GF Score™?
BLBD's GF Score™ is 83/100, which indicates strong fundamentals and potential for long-term returns based on historical data.
Is BLBD overvalued or undervalued?
BLBD is currently overvalued, with a GF Value™ of $44.21 compared to the current price of $59.13, indicating a potential risk for investors.
What is BLBD's P/E ratio?
BLBD's P/E (TTM) is 14.9x, which is slightly below its 5-year median of 15.1x, suggesting the stock is trading reasonably but still aligns with the overvaluation indicated by GF Value™.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Blue Bird (BLBD - Free Report) ended the recent trading session at $62.97, demonstrating a +1.96% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily loss of 0.24%. Meanwhile, the Dow experienced a drop of 0.01%, and the technology-dominated Nasdaq saw a decrease of 0.26%.
The stock of school bus maker has risen by 15.59% in the past month, leading the Auto-Tires-Trucks sector's gain of 2.91% and the S&P 500's gain of 6.42%.
Investors will be eagerly watching for the performance of Blue Bird in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.81, marking a 15.63% fall compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.56 per share and a revenue of $0 million, signifying shifts of +4.11% and 0%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Blue Bird. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Currently, Blue Bird is carrying a Zacks Rank of #3 (Hold).
Digging into valuation, Blue Bird currently has a Forward P/E ratio of 13.56. This valuation marks a discount compared to its industry average Forward P/E of 16.46.
It's also important to note that BLBD currently trades at a PEG ratio of 2.28. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Automotive - Domestic industry had an average PEG ratio of 1.06 as trading concluded yesterday.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. With its current Zacks Industry Rank of 191, this industry ranks in the bottom 22% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
MACON, Ga.--(BUSINESS WIRE)--Blue Bird Corporation (Nasdaq: BLBD), the leader in electric and cleaner-emission school buses, will release its fiscal 2026 second quarter results on May 6, 2026. The public is invited to attend an audio webcast in which Blue Bird executives John Wyskiel, President and CEO, and Razvan Radulescu, CFO, will discuss results. This webcast will take place at 4:30PM ET on May 6, 2026. A slide presentation will be available to support the webcast. Dial-in details and the.
In partnership with Highland Electric Fleets and Blue Bird Corporation, the district will deploy buses and charging infrastructure to support daily operations
, /PRNewswire/ -- Bibb County School District will introduce 15 electric school buses and support charging infrastructure, marking the district's first step toward fleet electrification. Fifteen Type C electric school buses manufactured by Blue Bird Corporation will be deployed as part of a broader effort to strengthen day-to-day fleet operations. Highland Electric Fleets is supporting the charging infrastructure and managing daily charging to help ensure the fleet is ready for regular routes without requiring additional oversight from district staff.
Bibb County School District
Blue Bird Corporation (PRNewsfoto/Highland Electric Fleets) Blue Bird, headquartered in Macon, has been manufacturing school buses in Georgia for nearly a century and is known for its focus on safety, durability, and reliability. The company is a leader in alternative-powered school transportation, with more than 25,000 propane, natural gas, and electric buses in operation across North America. Its electric buses are designed to meet the demands of daily routes while incorporating advanced battery and drivetrain technology.
"Bibb County School District's investment in electric buses demonstrates its commitment to cleaner, safer student transportation," said Albert Burleigh, vice president of bus sales in North America for Blue Bird. "These buses not only enhance the health of students and the community but also provide exceptional performance and long-term cost savings."
The buses are expected to provide a more comfortable ride for students, with electric models up to four times quieter than diesel, helping create a calmer environment on the way to and from school. They also reduce exposure to diesel exhaust, improving air quality inside the bus. With fewer moving parts than traditional vehicles, electric buses can help lower maintenance costs over time while offering more predictable day-to-day operations.
"Having these chargers on our property will create an ease of access for our drivers to make sure these buses remain fully available for our students and our schools," said Anthony Jackson, Executive Director of Transportation, Bibb County School District. "This provides the only available option for refueling without the fumes and mess of other alternatives."
"At Highland, our mission is to make the health and operational benefits of electric school buses more accessible and affordable for every community," said Duncan McIntyre, CEO of Highland Electric Fleets. "Replacing just five diesel buses with electric ones can reduce the risk of pediatric asthma for approximately 1,500 students. Students riding electric buses are also exposed to cleaner air, which has been linked to improved attendance and better focus in the classroom."
Bibb County School District will host a ribbon-cutting event on April 23 at 11:00 a.m. at the district's bus depot, located at 4580 Cavalier Drive in Macon. Following the event, district officials and project partners will be available for media interviews and attendees will be invited to take a ride on one of the electric school buses.
About Bibb County School District
The Bibb County School District maximizes student achievement and social-emotional well-being by building a sense of community in safe, equitable learning environments. Students are empowered to learn, lead, innovate, and serve as productive and caring citizens within their chosen paths of success.
About Blue Bird Corporation
Blue Bird (NASDAQ: BLBD) is recognized as a technology leader and innovator of school buses since its founding in 1927. Our dedicated team members design, engineer and manufacture school buses with a singular focus on safety, reliability, and durability. School buses carry the most precious cargo in the world – 25 million children twice a day – making them the most trusted mode of student transportation. The company is the proven leader in low- and zero-emission school buses with more than 25,000 propane, natural gas, and electric powered buses sold. Blue Bird is transforming the student transportation industry through cleaner energy solutions. For more information on Blue Bird's complete product and service portfolio, visit www.blue-bird.com.
About Highland Electric Fleets
Highland Electric Fleets is North America's leading provider of Electrification-as-a-Service. Founded in 2019, Highland partners with school districts, municipalities, and fleet operators to make the transition to electric fleets simple and affordable. Highland proudly serves as the Official Electric School Bus Provider of the LA28 Olympic and Paralympic Games and Team USA. From pioneering vehicle-to-grid technology to managing some of the nation's largest electric school bus fleets, Highland delivers reliable, cost-effective solutions that support local communities and drive the future of transportation. Learn more at www.highlandfleets.com.
Media Contacts
Chris Orlando
Highland Electric Fleets
[email protected]
In the latest trading session, Blue Bird (BLBD - Free Report) closed at $62.93, marking a -2.37% move from the previous day. This change lagged the S&P 500's 0.49% loss on the day. On the other hand, the Dow registered a loss of 0.05%, and the technology-centric Nasdaq decreased by 0.9%.
The stock of school bus maker has risen by 18.45% in the past month, leading the Auto-Tires-Trucks sector's gain of 5.12% and the S&P 500's gain of 12.8%.
Investors will be eagerly watching for the performance of Blue Bird in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on May 6, 2026. The company's earnings per share (EPS) are projected to be $0.81, reflecting a 15.63% decrease from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $4.56 per share and a revenue of $0 million, demonstrating changes of +4.11% and 0%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Blue Bird. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Blue Bird is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Blue Bird is presently being traded at a Forward P/E ratio of 14.15. This valuation marks a discount compared to its industry average Forward P/E of 15.65.
Investors should also note that BLBD has a PEG ratio of 2.38 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Automotive - Domestic industry was having an average PEG ratio of 1.06.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. With its current Zacks Industry Rank of 95, this industry ranks in the top 39% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Blue Bird (BLBD - Free Report) .
Blue Bird currently has an average brokerage recommendation (ABR) of 1.38, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by eight brokerage firms. An ABR of 1.38 approximates between Strong Buy and Buy.
Of the eight recommendations that derive the current ABR, six are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 75% and 12.5% of all recommendations.
Brokerage Recommendation Trends for BLBD
Check price target & stock forecast for Blue Bird here>>>
While the ABR calls for buying Blue Bird, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Should You Invest in BLBD?Looking at the earnings estimate revisions for Blue Bird, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $4.56.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Blue Bird. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Blue Bird.
Blue Bird (BLBD - Free Report) closed at $63.20 in the latest trading session, marking a -1.42% move from the prior day. This move lagged the S&P 500's daily gain of 0.29%. At the same time, the Dow lost 0.31%, and the tech-heavy Nasdaq gained 0.89%.
Shares of the school bus maker have appreciated by 9.35% over the course of the past month, outperforming the Auto-Tires-Trucks sector's gain of 2.86%, and lagging the S&P 500's gain of 10.54%.
The investment community will be closely monitoring the performance of Blue Bird in its forthcoming earnings report. The company is scheduled to release its earnings on May 6, 2026. On that day, Blue Bird is projected to report earnings of $0.81 per share, which would represent a year-over-year decline of 15.63%.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.56 per share and revenue of $0 million. These totals would mark changes of +4.11% and 0%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Blue Bird. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, Blue Bird boasts a Zacks Rank of #3 (Hold).
Investors should also note Blue Bird's current valuation metrics, including its Forward P/E ratio of 14.07. This denotes a discount relative to the industry average Forward P/E of 16.14.
We can also see that BLBD currently has a PEG ratio of 2.37. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Automotive - Domestic industry had an average PEG ratio of 1.1.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 69, putting it in the top 29% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
District begins transition to electric buses with charging infrastructure in partnership with Highland Electric Fleets
, /PRNewswire/ -- Rio Bravo-Greeley Union School District will break ground on a new electric school bus initiative, marking an early step in a transition to electric student transportation supported by on-site charging infrastructure. The project is being delivered in partnership with Highland Electric Fleets, North America's leading provider of Electrification-as-a-Service (EaaS), which will provide the electric buses, charging infrastructure, and ongoing support as part of a long-term electrification program. This effort reflects the district's focus on maintaining reliable, consistent service for students while beginning to integrate new technology into daily operations.
Rio Bravo-Greeley Union School District The district plans to deploy eight Blue Bird Corporation electric school buses as part of this initiative, with a dedicated charging depot currently under development and expected to be completed in early 2027. Charging infrastructure is being designed around the district's transportation schedule, ensuring buses are ready for daily routes once the site is complete while allowing for future expansion as the fleet grows.
"Our priority is always the safety, health, and reliability of the services we provide to our students," said Jennifer Hedge, District Superintendent, Rio Bravo-Greeley USD. "This project allows us to thoughtfully modernize our transportation program while maintaining the consistency families depend on. By investing in electric buses and on-site infrastructure, we are taking a responsible step toward cleaner air, more efficient operations, and a stronger future for our school community."
Electric school buses help improve the in-cabin environment for students and staff during daily rides while reducing overall emissions across the district's transportation system. With fewer moving parts than traditional diesel vehicles, electric buses can reduce long-term maintenance needs and help districts avoid fuel price volatility, supporting more predictable operations over time.
"This is the next step in Rio Bravo-Greeley's electrification journey," said Brian Buccella, Chief Commercial Officer, Highland Electric Fleets. "As these buses come online, they will reduce students' exposure to air pollution by up to 16%, leading to a quieter ride and a healthier environment inside the bus."
Rio Bravo-Greeley Union School District will host a groundbreaking ceremony on May 6 at 10:00 a.m. at 6521 Enos Lane, Bakersfield, CA, where district leaders, project partners, and community stakeholders will gather to mark the milestone. The media will have the opportunity to attend, with interviews and on-site access.
About Rio Bravo-Greeley Union School District
Since 1891, the heritage of the Rio Bravo-Greeley Union School District has passed from one generation to another, and today that century-old tradition continues in the hands of the community it serves.
The Rio Bravo-Greeley School District Educational Foundation, established in 1991, helps fund and support educational programs and activities within the district. The foundation supports programs, materials, and activities that significantly enhance the quality of education students receive.
About Blue Bird Corporation
Blue Bird (NASDAQ: BLBD) is recognized as a technology leader and innovator of school buses since its founding in 1927. Our dedicated team members design, engineer and manufacture school buses with a singular focus on safety, reliability, and durability. School buses carry the most precious cargo in the world – 25 million children twice a day – making them the most trusted mode of student transportation. The company is the proven leader in low- and zero-emission school buses with more than 25,000 propane, natural gas, and electric powered buses sold. Blue Bird is transforming the student transportation industry through cleaner energy solutions. For more information on Blue Bird's complete product and service portfolio, visit www.blue-bird.com.
About Highland Electric Fleets
Highland Electric Fleets is North America's leading provider of Electrification-as-a-Service. Founded in 2019, Highland partners with school districts, municipalities, and fleet operators to make the transition to electric fleets simple and affordable. Highland proudly serves as the Official Electric School Bus Provider of the LA28 Olympic and Paralympic Games and Team USA. From pioneering vehicle-to-grid technology to managing some of the nation's largest electric school bus fleets, Highland delivers reliable, cost-effective solutions that support local communities and drive the future of transportation. Learn more at www.highlandfleets.com.
Media Contacts
Chris Orlando
Highland Electric Fleets
[email protected]
