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…
Earnings analysis · 10-K
NTCT earnings analysis
Filed May 14, 2026 · Our reading of the company's report
The latest report
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…
Read full summary
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.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.3
What stood out
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Strong Revenue Growth
Total revenue increased by $36.8 million, or 4%, reaching $859.5 million for FY2026.
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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.
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Improved Gross Margin
Gross margin improved to 79%, up from 78% in FY2025, driven by a favorable product mix.
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Significant Cash Flow Generation
Net cash provided by operating activities was $294.5 million for FY2026, affirming strong liquidity.
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Reinforced Share Repurchase Program
Repurchased shares worth $60.8 million under the current program, leaving approximately 20.5 million shares available.
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Expansion in Cybersecurity Revenue
Cybersecurity revenue increased by 8% due to heightened demand across enterprise sectors.
What to watch
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Potential Goodwill Impairment Risk
The risk of future goodwill impairment remains, as highlighted by the previous $427 million charge in FY2025.
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Dependency on Cybersecurity Market
Reliance on favorable conditions in the cybersecurity market could lead to vulnerability during downturns.
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Foreign Currency Exchange Risk
With significant operations abroad, exposure to foreign currency fluctuations could adversely affect financial results.
Management's outlook
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.
Earlier filings 4
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 itself. Analysis can contain errors; check the source document for full context.