New York, January 27, 2026, 15:42 EST — Regular session.
Shares of cloud security firm Netskope (NTSK) climbed Tuesday after Telefónica Tech UK&I unveiled a managed “Security Edge” cyber service using Netskope’s platform. The stock gained 3.2% to $15.92, trading between $15.41 and $16.75 on about 3.6 million shares. (Telefónica)
This shift is significant as managed security is becoming a primary sales channel rather than a niche offering. Telecom and IT service providers aim to package cloud security into monthly plans, responding to the growing trend of businesses moving work and data from offices to cloud applications.
Security service edge, or SSE, lies at the core — these cloud-based controls act as a gatekeeper between users and the apps or data they access. Vendors like Netskope argue partners can offer SSE as a service, managing the daily operations and speeding up deployments in large enterprises.
Telefónica Tech UK&I announced its UK and Ireland rollout, bundling the Netskope One platform with Telefónica’s own professional services. This includes monitoring and incident response from its security operations centres. Ed Tucker, a Telefónica exec, said the move responds to “demand from local organisations.” Netskope’s Colette Kitterhing added that customers want to “avoid the traditional trade-offs between security and performance.” (Netskope)
The broader market held firm. Zscaler climbed 2.8%, while Palo Alto Networks slipped 0.2%. The tech-focused QQQ rose roughly 1%, and the SPY added close to 0.5%.
Netskope offers cloud security and networking software that manages access to web, SaaS, and private applications—a space packed with larger competitors and specialized firms. The company raised $908.2 million in its September IPO, pricing shares at $19 each. (Reuters)
In its December quarterly update, Netskope revealed annual recurring revenue of $754 million and total revenue of $184.2 million, with fourth-quarter revenue guidance between $188 million and $190 million. CEO Sanjay Beri highlighted “strong demand” driven by cloud modernisation and AI. (Netskope)
Partner launches don’t always translate into immediate reported numbers. Managed service contracts often take a while to build momentum, and customers frequently haggle over discounts or pit vendors against each other, especially when budgets get tight.
Investors are eyeing Netskope’s fiscal year-end on Jan. 31, waiting for the upcoming results. The focus will be on subscription growth and whether partner-led deals have the scale to make a real impact. (SEC)
