Netskope Stock Soars: Q2 Revenue Up 29% on AI Security Boom

Netskope shares surged over 10% in premarket trading after its second-quarter revenue climbed 29%. The cloud and AI security vendor also narrowed its loss and raised its full-year outlook. Here's the thing: The company posted revenue of $221 million, exceeding analyst projections. Its adjusted loss was $0.03 per share, better than the $0.07 per share loss Wall Street expected. Annual recurring revenue increased by 27% to $899 million. What's interesting is that demand for tools protecting artificial intelligence systems is driving this growth. The CEO attributed the performance to "differentiating organic innovation" and sustained demand for the Netskope One platform. Netskope also raised its fiscal 2027 revenue forecast. The bottom line: The company's AI products, like AI Guardrails and AI Gateway, are gaining traction, showing how crucial AI security is becoming for businesses.