NTCT earnings analysis
What we found in NTCT's 10-K: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
NetScout Systems, Inc. reported a financial recovery for FY2026 with total revenue of $859.5 million, a 4% increase from the previous year, attributed to strong growth in service offerings and product demand, especially in cybersecurity. The company achieved a net income of $95.5 million after a prior year net loss due to substantial goodwill impairment charges, reflecting improved operational efficiency and a recovery in market conditions.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Strong Revenue Growth
- Total revenue increased by $36.8 million, or 4%, reaching $859.5 million for FY2026.
- Restored Profitability
- Net income rose to $95.5 million in FY2026, compared to a net loss of $366.9 million in FY2025, largely due to the absence of impairment charges.
- Improved Gross Margin
- Gross margin improved to 79%, up from 78% in FY2025, driven by a favorable product mix.
- Significant Cash Flow Generation
- Net cash provided by operating activities was $294.5 million for FY2026, affirming strong liquidity.
- Reinforced Share Repurchase Program
- Repurchased shares worth $60.8 million under the current program, leaving approximately 20.5 million shares available.
- Expansion in Cybersecurity Revenue
- Cybersecurity revenue increased by 8% due to heightened demand across enterprise sectors.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Potential Goodwill Impairment Risk
- The risk of future goodwill impairment remains, as highlighted by the previous $427 million charge in FY2025.
- Dependency on Cybersecurity Market
- Reliance on favorable conditions in the cybersecurity market could lead to vulnerability during downturns.
- Foreign Currency Exchange Risk
- With significant operations abroad, exposure to foreign currency fluctuations could adversely affect financial results.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $1.3
- Gross margin
- 79%
- Operating margin
- 11.9%
What they said about what is next.
Annual outlook for FY2027 indicates expected revenue growth ranging from $885 million to $915 million and non-GAAP EPS between $2.65 and $2.80.
The filing reads better than the one before it.
What came before.
- 10-Q · February 5, 2026
- NetScout Systems reported strong financial results for Q3 2026, with revenue of $250.7 million, representing a 6.9% increase over estimates and a significant earnings surprise with EPS of $1.00, beating estimates by…
- 10-Q · November 6, 2025
- NetScout Systems reported strong results for Q2 2025, with revenues of $219 million, outperforming consensus estimates by approximately 9.3%. Gross margin increased to 80.1%, while operating margin improved…
- 10-Q · August 7, 2025
- NetScout Systems, Inc. reported a significant turnaround in Q1 2026 with a revenue of $186.7 million, up 7% from the previous year, driven by strength in cybersecurity and service assurance offerings. The gross margin…
- 10-K · May 15, 2025
- NetScout Systems, Inc. reported a net loss of $366.9 million for the fiscal year ended March 31, 2025, which included a goodwill impairment charge of $427 million due to continued declines in stock price. The company's…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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