olivLaw · US equity research
NETSCOUT SYSTEMS, INC. NTCT
Services-Computer Integrated Systems Design · SIC 7373 · Vertical: Services-Computer Integrated Systems Design (SIC 7373)
NETSCOUT provides network observability, carrier service assurance, cybersecurity and DDoS protection, built on its deep packet inspection technology at scale. Its relevance grows as customers adopt AI-enabled applications and need high-quality real-time data, and in fiscal 2026 total revenue exceeded 859.5 million USD.
At the close of 04 Nov 2026, NETSCOUT SYSTEMS, INC. (NTCT) stock was 38.10 USD (+0.45% on the day), with market capitalisation 2.8 bn USD, P/E 23.3 on diluted EPS of 1.64 USD over the last 12 months, beta 1.00, 52-week range 25.47–44.84 USD. Latest reported quarter (Q1 2027): revenue of 210.4 m USD (+12.7% YoY), net income of 21.8 m USD, diluted EPS 0.29 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 43.5
- weak (30–45)
- Bollinger (20, 2)
- 37.22 – 40.96
- in the lower half of the band · %B 0.24 · band width 9.6%
- SMA 50 / 200
- 38.95 / 36.52
- mixed trend
- MACD (12, 26, 9)
- -0.27 / -0.08
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −7.5% | −1.1% | −6.4 pp | — |
| 3 months | −7.1% | −0.5% | −6.7 pp | — |
| 6 months | +7.3% | +4.4% | +2.9 pp | — |
| Year to date | +40.8% | +12.3% | +28.5 pp | — |
| 1 year | +41.5% | +13.5% | +28.0 pp | −34.8% |
| 3 years | +75.7% | +76.4% | −0.7 pp | −27.7% |
| 5 years | +12.3% | +63.7% | −51.4 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q1 2027 · 30 Jun 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 | Q4 '26 | Q1 '27 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 191.1 m | 252.0 m | 205.0 m | 186.7 m | 219.0 m | 250.7 m | 203.0 m | 210.4 m |
| Cost of revenue | 42.1 m | 46.6 m | 45.7 m | 43.4 m | 43.6 m | 46.0 m | 43.9 m | 44.5 m |
| Gross profit | 149.1 m | 205.4 m | 159.3 m | 143.3 m | 175.4 m | 204.7 m | 159.1 m | 165.9 m |
| Research & development | 35.9 m | 37.8 m | 36.7 m | 39.8 m | 40.3 m | 39.6 m | 39.8 m | 42.4 m |
| Operating income | 14.1 m | 61.7 m | 19.9 m | -6.6 m | 32.5 m | 64.3 m | 19.6 m | 14.5 m |
| Depreciation & amortisation | 16.1 m ≈ | 15.7 m ≈ | 15.6 m | 14.5 m | 14.4 m ≈ | 13.5 m ≈ | 14.2 m | 14.4 m |
| Interest expense | 1.8 m | 2.6 m | 765.0 k | 415.0 k | 421.0 k | 456.0 k | 413.0 k | 431.0 k |
| Pre-tax income | 12.3 m | 57.4 m | 18.2 m | -2.8 m | 31.4 m | 66.6 m | 23.3 m | 19.0 m |
| Income tax | 3.3 m | 8.6 m | -416.0 k | 851.0 k | 5.6 m | 11.5 m | 5.1 m | -2.9 m |
| Net income | 9.0 m | 48.8 m | 18.6 m | -3.7 m | 25.8 m | 55.1 m | 18.2 m | 21.8 m |
| Diluted EPS | 0.13 | 0.67 | 0.26 ≈ | -0.05 | 0.35 | 0.75 | 0.25 ≈ | 0.29 |
| Operating cash flow | -3.7 m ≈ | 41.5 m ≈ | 141.5 m | 73.6 m | 6.7 m ≈ | 62.1 m ≈ | 152.3 m | 50.8 m |
| Capex | 882.0 k ≈ | 1.9 m ≈ | 1.4 m | 1.9 m | 2.2 m ≈ | 2.8 m ≈ | 2.2 m | 3.5 m |
| Share repurchases | 257.0 k ≈ | 0 ≈ | 0 | 15.0 m | 16.6 m ≈ | 1.0 k ≈ | 29.2 m | 0 |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 7 percentile of its own 28-quarter history (min 20.7, median 58.2, max 393.8; quarters with earnings only).
Fiscal years
| Fiscal year | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 909.9 m | 891.8 m | 831.3 m | 855.6 m | 914.5 m | 829.5 m | 822.7 m | 859.5 m |
| Revenue YoY | −7.8% | −2.0% | −6.8% | +2.9% | +6.9% | −9.3% | −0.8% | +4.5% |
| Net income | -73.3 m | -2.8 m | 19.4 m | 35.9 m | 59.6 m | -147.7 m | -366.9 m | 95.5 m |
| Net income YoY | −191.9% | unavailable | unavailable | +85.4% | +66.3% | −347.7% | unavailable | unavailable |
| Diluted EPS | -0.93 | -0.04 | 0.26 | 0.48 | 0.82 | -2.07 | -5.12 | 1.30 |
| Diluted EPS YoY | −203.3% | unavailable | unavailable | +84.6% | +70.8% | −352.4% | unavailable | unavailable |
| net % | -8.1% | -0.3% | 2.3% | 4.2% | 6.5% | -17.8% | -44.6% | 11.1% |
| Free cash flow | 126.4 m | 205.1 m | 201.9 m | 285.7 m | 146.2 m | 52.4 m | 212.3 m | 285.4 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2026 · 31 Mar 2026
- Cash
- 586.5 m USD
- Financial debt
- unavailable USD
- Net debt
- unavailable USD
- Equity
- 1.6 bn USD
- Total assets
- 2.4 bn USD
- Debt / equity
- unavailable
- Current ratio
- 1.85x
- ROE
- 6.0%
- ROA
- 4.2%
- FCF margin
- 33.2%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 831.3 m | 855.6 m | 914.5 m | 829.5 m | 822.7 m | 859.5 m | SEC (XBRL)· 14 May 2026verified |
| Cost of revenue | 222.1 m | 214.2 m | 223.1 m | 187.4 m | 178.7 m | 177.0 m | SEC (XBRL)· 14 May 2026verified |
| Gross profit | 609.2 m | 641.4 m | 691.4 m | 642.0 m | 643.9 m | 682.5 m | SEC (XBRL)· 14 May 2026verified |
| Research & development | 179.2 m | 171.1 m | 176.2 m | 161.2 m | 152.9 m | 159.5 m | SEC (XBRL)· 14 May 2026verified |
| Operating income | 37.1 m | 48.6 m | 77.7 m | -149.8 m | -367.6 m | 109.8 m | SEC (XBRL)· 14 May 2026verified |
| Depreciation & amortisation | 105.8 m | 95.8 m | 85.9 m | 75.0 m | 63.8 m | 56.5 m | SEC (XBRL)· 14 May 2026verified |
| EBITDA | 143.0 m ≈ | 144.4 m ≈ | 163.6 m ≈ | -74.8 m ≈ | -303.8 m ≈ | 166.4 m ≈ | SEC (XBRL)· 14 May 2026derived |
| Interest expense | 10.9 m | 8.0 m | 10.2 m | 8.7 m | 7.2 m | 1.7 m | SEC (XBRL)· 14 May 2026verified |
| Pre-tax income | 22.3 m | 42.9 m | 68.4 m | -144.5 m | -365.8 m | 118.5 m | SEC (XBRL)· 14 May 2026verified |
| Income tax | 3.0 m | 7.0 m | 8.8 m | 3.2 m | 1.1 m | 23.0 m | SEC (XBRL)· 14 May 2026verified |
| Net income | 19.4 m | 35.9 m | 59.6 m | -147.7 m | -366.9 m | 95.5 m | SEC (XBRL)· 14 May 2026verified |
| Diluted EPS | 0.26 | 0.48 | 0.82 | -2.07 | -5.12 | 1.30 | SEC (XBRL)· 14 May 2026verified |
| Weighted average diluted shares | 73.8 m | 75.1 m | 73.0 m | 71.5 m | 71.6 m | 73.4 m | SEC (XBRL)· 14 May 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 467.2 m | 636.2 m | 386.8 m | 389.7 m | 457.4 m | 586.5 m | SEC (XBRL)· 14 May 2026verified |
| Receivables | 197.7 m | 148.2 m | 143.9 m | 192.1 m | 163.7 m | 151.5 m | SEC (XBRL)· 14 May 2026verified |
| Inventories | 22.8 m | 28.2 m | 18.0 m | 14.1 m | 12.9 m | 13.3 m | SEC (XBRL)· 14 May 2026verified |
| Current assets | 722.5 m | 921.9 m | 617.4 m | 672.5 m | 713.2 m | 867.9 m | SEC (XBRL)· 14 May 2026verified |
| Property, plant & equipment, net | 48.5 m | 41.3 m | 34.7 m | 26.5 m | 21.5 m | 23.6 m | SEC (XBRL)· 14 May 2026verified |
| Goodwill | 1.7 bn | 1.7 bn | 1.7 bn | 1.5 bn | 1.1 bn | 1.1 bn | SEC (XBRL)· 14 May 2026verified |
| Intangibles (excl. goodwill) | 511.9 m | 433.4 m | 366.6 m | 308.7 m | 258.7 m | 214.3 m | SEC (XBRL)· 14 May 2026verified |
| Total assets | 3.1 bn | 3.2 bn | 2.8 bn | 2.6 bn | 2.2 bn | 2.4 bn | SEC (XBRL)· 14 May 2026verified |
| Accounts payable | 18.0 m | 22.0 m | 16.5 m | 14.5 m | 18.2 m | 23.5 m | SEC (XBRL)· 14 May 2026verified |
| Long-term debt | 350.0 m | 350.0 m | 100.0 m | 100.0 m | 0 | — | SEC (XBRL)· 15 May 2025verified |
| Current liabilities | 411.3 m | 476.2 m | 453.6 m | 395.1 m | 407.9 m | 470.1 m | SEC (XBRL)· 14 May 2026verified |
| Total liabilities | 1.1 bn | 1.1 bn | 790.9 m | 703.2 m | 626.2 m | 705.3 m | SEC (XBRL)· 14 May 2026verified |
| Equity | 2.0 bn † | 2.1 bn † | 2.0 bn † | 1.9 bn † | 1.6 bn † | 1.6 bn † | SEC (XBRL)· 14 May 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 213.9 m | 296.0 m | 156.7 m | 58.8 m | 217.7 m | 294.5 m | SEC (XBRL)· 14 May 2026verified |
| Capex | 12.0 m | 10.4 m | 10.5 m | 6.4 m | 5.4 m | 9.1 m | SEC (XBRL)· 14 May 2026verified |
| Free cash flow | 201.9 m ≈ | 285.7 m ≈ | 146.2 m ≈ | 52.4 m ≈ | 212.3 m ≈ | 285.4 m ≈ | SEC (XBRL)· 14 May 2026derived |
| Investing cash flow | 24.7 m | -68.4 m | 15.3 m | 13.4 m | -7.0 m | -92.8 m | SEC (XBRL)· 14 May 2026verified |
| Financing cash flow | -118.3 m | -54.2 m | -419.4 m | -69.4 m | -142.0 m | -76.7 m | SEC (XBRL)· 14 May 2026verified |
| Share repurchases | 3.3 m | 35.7 m | 150.0 m | 50.0 m | 25.3 m | 60.8 m | SEC (XBRL)· 14 May 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
4 indicators that do not apply to the sector.
Valuation
olivLaw classification
- valuation methods computed: 0 of at least 1
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 2.8 bn USD
Key indicators
Coverage and freshness
Score by group
77% · Insufficient data
Estimated value range
unavailable — no valuation method could be computed
Valuation assumptions are editorial choices, not measured; beta is not measured.
Valuation methods
- DCF (discounted cash flow)unavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: EV/Salesunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
no valuation method could be computed
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Insufficient data
Minimum-evidence gate: valuation methods computed: 0 of at least 1
| Factor | Value | Score | Weight used |
|---|---|---|---|
| Gross margin · Quality | 79.8% | 100 (on a fixed band) | 14% |
| EBIT margin · Quality | 14.8% | 82 (vs peers) | 11% |
| FCF margin · Quality | 29.6% | 100 (on a fixed band) | 11% |
| Revenue CAGR 3Y · Growth | -2.0% | 0 (on a fixed band) | 22% |
| Revenue growth (YoY) · Growth | 4.5% | 43 (vs peers) | 11% |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 1.8x | 60 (on a fixed band) | 8% |
| EV/Sales · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | 9.4% | 100 (on a fixed band) | 17% |
| Shareholder yield (distributions) · Returns | 1.7% | 61 (on a fixed band) | 6% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partial60/100 · 1/2 factors with a value
- Growth14/100 · 2/2 factors with a value
- Quality94/100 · 3/3 factors with a value
- Returns61/100 · 1/1 factors with a value
- Valuation· partial100/100 · 1/2 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
NETSCOUT SYSTEMS INC (NTCT). Latest full fiscal year: 2026; data up to 2026-06-30.
Figures computed from the financial statements: revenue 859.5 m USD in 2026; YoY growth 4.5%; net margin 13.7%; ROE 7.5%.
Valuation cannot be computed from the available data.
Insufficient data for a verdict (valuation methods computed: 0 of at least 1).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Gross margin: 79.8%
- EBIT margin: 14.8%
- FCF margin: 29.6%
- FCF yield: 9.4%
What contradicts it
- Revenue CAGR 3Y: -2.0%
Not assessed (insufficient data or a ratio without meaning): Net debt / EBITDA, EV/Sales.
Versus the vertical median
Services-Computer Integrated Systems Design (SIC 7373) · same industry (4-digit SIC) · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| LDOSLeidos Holdings, Inc. | 16.6 bn | 12.2 | 28.2% | 8.0% | +3.1% | −29% / +26% |
| GDDYGoDaddy Inc. | 14.3 bn | 16.2 | — | 18.6% | +8.3% | −7% / +18% |
| CACICACI International Inc | 14.0 bn | 25.9 | 12.5% | 5.5% | +10.9% | +2% / +97% |
| JKHYJack Henry & Associates, Inc. | 12.6 bn | 25.7 | 24.0% | 19.8% | +7.1% | +3% / +13% |
| IONQIonQ, Inc. | 11.3 bn | — | -60.8% | -553.3% | +201.9% | −40% / +142% |
| OTEXOpen Text Corp | 6.4 bn | 10.3 | 16.2% | 12.3% | +1.5% | −21% / −34% |
| SAICScience Applications International Corporation | 6.3 bn | 17.6 | 25.7% | 5.1% | −2.9% | +75% / +28% |
| WAYWaystar Holding Corp. | 5.7 bn | 42.9 | 3.7% | 10.7% | +16.5% | −20% / unavailable |
| PSNParsons Corporation | 5.5 bn | 38.2 | 5.7% | 2.3% | −5.7% | −38% / −16% |
| KDKyndryl Holdings, Inc | 3.7 bn | 48.9 | 6.8% | 0.5% | +0.2% | −35% / −7% |
| AGYSAgilysys, Inc. | 3.5 bn | 78.5 | 13.6% | 12.9% | +15.9% | −0% / +42% |
| NTCTNetscout Systems Inc | 2.8 bn | 23.3 | 7.5% | 13.7% | +4.5% | +42% / +76% |
| AURAurora Innovation, Inc. | 2.6 bn | — | -45.7% | -13,328.6% | unavailable | −3% / +86% |
| PONYPony AI Inc. | 2.1 bn | — | -10.3% | -148.9% | +20.0% | −65% / unavailable |
| OSPNOneSpan Inc. | 872.9 m | 13.2 | 26.8% | 27.5% | +0.0% | +94% / +136% |
| TLSTelos Corporation | 378.2 m | — | -14.9% | -8.1% | +52.2% | −12% / +23% |
| SLPSimulations Plus, Inc. | 374.2 m | 46.7 | 6.2% | 9.9% | +13.1% | unavailable / unavailable |
| SMRTSmartrent, Inc. | 307.5 m | — | -7.6% | -11.0% | −12.9% | −6% / −48% |
| ASURAsure Software, Inc. | 293.6 m | — | -1.9% | — | +24.3% | +22% / +22% |
| VEEAVeea Inc. | 281.2 m | — | — | -2,491.9% | +56.6% | −55% / −98% |
| RBBNRibbon Communications Inc. | 275.9 m | 22.5 | 5.0% | 2.3% | +1.3% | −46% / −28% |
| KDKKodiak AI, Inc. | 220.7 m | — | — | -4,259.6% | −74.6% | −82% / unavailable |
| UISUnisys Corp | 171.4 m | — | — | -21.7% | −2.9% | −12% / −51% |
| AIOSAIOS Tech Inc. | 138.9 m | — | -208.9% | -4,359.1% | −98.5% | −87% / −86% |
| MRLNMerlin, Inc. | 91.5 m | — | — | — | unavailable | −92% / unavailable |
1- and 3-year price returns: for NTCT from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 21.40 Total return -44% · Per year -44% | 37.95 Total return -0% · Per year -0% | 57.34 Total return 51% · Per year 51% |
| 3 years | 18.12 Total return -52% · Per year -22% | 36.42 Total return -4% · Per year -1% | 60.78 Total return 60% · Per year 17% |
| 5 years | 15.35 Total return -60% · Per year -17% | 34.94 Total return -8% · Per year -2% | 64.42 Total return 69% · Per year 11% |
- Exit P/E± 9.10
- Net margin± 6.37
- Annual revenue growth± 5.58
- Annual dilution± 0.54
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
NETSCOUT provides network observability, carrier service assurance, cybersecurity and DDoS protection, built on its deep packet inspection technology at scale. Its relevance grows as customers adopt AI-enabled applications and need high-quality real-time data, and in fiscal 2026 total revenue exceeded 859.5 million USD 1.
SWOT
Strengths
- Large-scale DPI technology and the Smart Data volume are a distinctive advantage, backed by a patent portfolio that reached 750 patents.
- High gross margin and operating cash flow give financial flexibility for investment and acquisitions.
- A strong position with government agencies and large enterprises provides a stable customer base.
Weaknesses
- Dependence on government purchasing cycles can introduce volatility, especially when orders shift between quarters.
- The prior year's net losses and goodwill impairment show vulnerability when acquisitions underperform.
- Customer concentration in a few industries can amplify the effect of an economic slowdown on demand.
Opportunities
- Expanding Arbor Cloud through the DigiCert acquisition and doubled capacity could open more recurring revenue.
- Supplying AI-ready data to third-party platforms could create new revenue streams if adoption continues.
- 5G technology and the evolution of mobile networks could support new service assurance demand.
Threats
- More sophisticated, geopolitically linked cyberattacks could raise pressure on security products and reputation.
- Tariffs, sanctions and trade barriers could affect the supply chain and international sales.
- Competition from large technology companies could limit pricing power and margins.
Risks
- Economic conditions and IT spendinghigh
An economic slowdown or cuts in IT spending could limit growth and weigh on results 1.
- Product vulnerabilitieshigh
Products may contain undiscovered vulnerabilities or security defects, and customers may delay deploying updates, which could lead to liability claims 1.
- Security of own systemsmedium
A compromise of the company's own systems or data could bring regulatory action, litigation and reputational harm 1.
- Dependence on distribution channels and suppliersmedium
Problems with distribution partners and sole-source suppliers could delay sales and deliveries 1.
- Acquisitions and integrationlow
Integrating acquisitions such as the DigiCert assets could prove harder or more costly than anticipated 12.
Investment thesis
What would need to be true (bull case)
- Revenue growth in the first quarter of fiscal 2027 and a reaffirmed full-year outlook suggest that demand for service assurance remains solid 3.
- Expanding Arbor Cloud and doubling its capacity could turn DDoS protection into a larger source of recurring revenue 3.
- If Smart Data becomes a standard input for AI workflows, the company could gain a stronger market position 1.
What would break the thesis
- The growth outlook for fiscal 2027 is moderate, which could limit the upside if IT spending recovers more strongly 3.
- First quarter revenue was partly supported by government orders received earlier than expected, which could make future comparisons harder 3.
- Constrained service provider spending and AI-related supply chain dynamics could change the timing of customer orders 2.
What to watch
- Delivery against the fiscal 2027 revenue and non-GAAP earnings outlooknext 10-K
- Revenue contribution from the DigiCert acquisition and integration of Arbor CloudQ2 2027
- Cybersecurity revenue trend against the strong prior-year comparisonQ2 2027
- Pace of revenue growth in the service provider segment2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
NETSCOUT, with over four decades of experience, builds its visibility platform on its deep packet inspection (DPI) technology, which generates 'Smart Data', a high-fidelity dataset derived from real-time network activity 1. Solutions are delivered as integrated appliances, software, virtualized software or SaaS, and the data supports performance, security and AI-driven operations 1. In the first quarter of fiscal 2027, revenue grew 12.7% 3.
The company operates in three main areas: enterprises (including government agencies), telecommunications service providers, and the Arbor line for DDoS protection 1. Its revenue model combines products and services, and in the first quarter of fiscal 2027 services made up 59% of revenue 3. The acquisition of DigiCert's DDoS assets, completed in May 2026, expands the Arbor Cloud capacity and is expected to add about 20 million USD in annualized revenue 2.
The financial profile shows gross margin rising to 79% in fiscal 2026 thanks to a favorable software licensing mix 1. The company returned to GAAP net income in fiscal 2026 after the prior year's losses caused by goodwill impairment, and it reaffirmed its fiscal 2027 outlook 3.
Segments
Service assurance
This line is the main growth engine, supported by network observability solutions for enterprises and service assurance for mobile and fixed operators 1. In the first quarter of fiscal 2027, service assurance revenue partly benefited from government orders received earlier than expected 3.
Cybersecurity and DDoS protection
The Arbor and Omnis Cyber Intelligence lines protect networks from volumetric and application-specific attacks, and through the DigiCert acquisition the company expands its Arbor Cloud network 12. Cybersecurity revenue in the first quarter of fiscal 2027 was consistent with the prior year against a strong comparison 3.
Market context
The company is active in network observability, service assurance and security markets, where its customers are enterprises, public agencies and telecom providers 1. Government buying cycles are influenced by administration changes and budgets, while operator spending depends on the pace of 5G network investment 1.
Demand for observability and security is driven by cloud migration, increasingly sophisticated cyberattacks and the need for quality data for AI, and US revenue increased 24% in the quarter ended June 30, 2026 12.
Trends
- Migration to cloud and network edgestailwind
Moving applications to cloud and to the edges of networks increases the need for unified visibility, which could support demand for the company's solutions 1.
- AI-enabled cyber threatstailwind
Attacks generated or facilitated by AI raise the frequency and sophistication of threats, which could boost demand for DDoS protection and forensic analysis 1.
- AI-related supply chain dynamicsheadwind
Customer order cycles could be affected by AI-related supply chain dynamics, which could change the timing of product sales 2.
- Constrained service provider spendingheadwind
Management points to customer spending in the service provider segment constrained by macroeconomic conditions, which could slow growth in that segment 2.
Competitive position
The risk factors cite intense competition from other technology companies, and competition in security and observability is described as high 1. The company differentiates itself through DPI technology at scale and the volume of structured data it provides 1.
Partnerships with third-party observability and AI platforms, such as Splunk and ServiceNow, could both expand the market and compete with the company's own offerings, depending on how customers choose to integrate data 1.
- Splunk
Third-party analytics and observability platform named as a partner for Omnis Insights data feeds, but it can also compete in data analysis.
- ServiceNow
Platform named as a partner for integrating Omnis Insights data, relevant also to IT operations.
- General observability solution providers
Technology companies offering application and infrastructure monitoring, present in the same enterprise markets.
- DDoS protection and cloud service providers
Companies offering traffic scrubbing and DDoS protection, especially for service providers and cloud customers.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- What Makes NetScout Systems (NTCT) an Undervalued Beneficiary of Digital Transformation?Yahoo Finance — News · 01 Sept 2026 · EN
The latest news item in our archive is from 01 Sept 2026; the newest SEC filing is from 26 Oct 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.
SEC filings
- Current report26 Oct 2026Departure or appointment of officers
- Current report11 Sept 2026Departure or appointment of officers · Shareholder vote
- Quarterly report06 Aug 2026
- Current report06 Aug 2026Results of operations · Financial statements and exhibits
- Proxy statement24 Jul 2026
- Current report03 Jun 2026Item 4.01 · Financial statements and exhibits
- Annual report14 May 2026
- Current report07 May 2026Results of operations · Financial statements and exhibits
- Quarterly report05 Feb 2026
- Current report05 Feb 2026Results of operations · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2026-03-31 · SEC / NETSCOUT SYSTEMS, INC. · 14 May 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / NETSCOUT SYSTEMS, INC. · 06 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / NETSCOUT SYSTEMS, INC. · 06 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.