Cybersecurity firm Netskope soared in its Nasdaq debut on Thursday, commanding an $8.79 billion valuation after its shares jumped 21% on opening. The Santa Clara, California-based company’s stock opened at $23 apiece, well above its $19 offer price, marking one of the year’s strongest tech IPO performances.
Netskope raised $908.2 million in its initial public offering, selling 47.8 million shares at the top end of a tightened range of $17 to $19 apiece. The offering was heavily oversubscribed — 20 times over, according to CEO Sanjay Beri — underscoring the intense demand from investors eager to buy into one of the few tech sectors with consistently rising structural demand: cybersecurity.
The listing comes as the U.S. IPO market stages a comeback after years of uneven activity. A string of high-profile debuts — including design software maker Figma — has highlighted pent-up appetite for growth companies. Netskope’s strong reception, analysts say, could encourage more late-stage tech firms to test public markets in the months ahead.
Founded in 2012, Netskope provides cloud-based security software that shields applications, websites, and data from breaches and cyberattacks. Its pitch has become especially resonant in an era where AI is reshaping both opportunity and risk.
“AI is kind of right in our wheelhouse,” Beri told Reuters. “Securing it, enabling companies to say yes to leveraging it, by putting guardrails around it.”
The company’s public debut also helps extend its brand recognition, Beri said, stressing that listing on the Nasdaq was as much about visibility as raising capital. Netskope had previously been valued at more than $7.5 billion in a 2021 funding round led by ICONIQ Capital.
Yet analysts caution that the real test lies ahead. “Netskope’s debut will be closely watched because cybersecurity remains one of the few technology sectors with clear structural demand, yet recent IPO performances have been mixed,” said Kat Liu, vice president at IPO research firm IPOX.
Rival Rubrik has seen its shares more than double since last year’s listing, while SailPoint has struggled to sustain momentum, trading below its February offer price.
Greg Martin, managing director at Rainmaker Securities, noted that Netskope’s long-term performance will hinge on its ability to balance profitability with growth in an increasingly competitive space. The firm is up against sector heavyweights, including Palo Alto Networks and Zscaler, both of which have been aggressively expanding their offerings as enterprise clients boost cybersecurity budgets.
Comparative market analysis
Investors are keenly comparing Netskope’s debut to the trajectory of its peers. Palo Alto Networks, one of the sector’s largest and most established players, has continued to see strong demand for its platform despite heightened competition. Zscaler, which went public in 2018, has more than quadrupled in value since its debut, validating investor appetite for high-growth cloud security companies. Rubrik’s doubling in share price since last year reinforces that appetite, while SailPoint’s struggles serve as a reminder that execution risks remain real.
Against this backdrop, Netskope’s positioning around AI-driven security — and its emphasis on protecting applications in an increasingly cloud-first world — may prove to be a differentiator. The firm enters public markets at a moment when corporate IT departments are racing to adopt AI but remain wary of the vulnerabilities it introduces. That makes Netskope’s narrative of “guardrails for AI” compelling to investors who see the space as a structural growth story.
If enterprise security spending accelerates as expected — particularly to address AI-related threats — Netskope could leverage its technology stack to capture outsized growth, narrowing the gap with entrenched rivals. The heavy oversubscription of its IPO suggests institutional investors see this potential.
But some analysts expect Netskope to face the same pressures that tempered enthusiasm for SailPoint if broader market conditions sour or if profitability lags expectations. Its ability to execute, scale, and differentiate from giants like Palo Alto and Zscaler will ultimately determine whether Thursday’s surge was the beginning of a long rally or a short-lived burst of optimism.
However, Netskope’s blockbuster debut has placed it squarely in the spotlight, reinforcing cybersecurity’s place as one of the few tech sectors investors believe can thrive regardless of broader market headwinds.
