NTCT · NetScout Systems, Inc.

NetScout delivered strong full-year FY2026 results with total revenue reaching $859.5 million, a 4.5% increase from $822.7 million in FY2025, driven by growth in both product revenue ($370.1 million, up from $359.9 million) and service revenue ($489.3 million, up from $462.8 million). Service revenue growth reflects a higher mix at 57% of total revenue versus 56% prior year, while product backlog expanded to $50 million including $45.8 million fulfillable, up from $33 million. GAAP profitability swung to positive territory with operating income of $109.8 million (12.8% margin) from a $367.6 million loss in FY2025 due to $427 million non-cash goodwill charges. Non-GAAP metrics showed robust expansion, with operating income at $218.5 million (25.4% margin) versus $195.1 million (23.7%) prior year, and adjusted EBITDA at $228.1 million (26.5% of revenue). CEO Anil Singhal highlighted revenue growth across Cybersecurity and Service Assurance, accelerated product innovation, and margin expansion amid a dynamic macro environment, positioning the company to support customer AI and digital transformation via its AI-ready data platform. Q4 saw slight revenue decline to $203 million but stable GAAP EPS at $0.25. Balance sheet strengthened with cash and investments at $705.1 million (up from $492.5 million), zero debt under $600 million facility. Share repurchases of 2.5 million shares for $60.8 million underscore capital return confidence. FY2027 outlook projects revenue growth to $885-915 million (4.7% midpoint), non-GAAP EPS $2.65-2.80 (9.9% midpoint growth), incorporating May 1, 2026 acquisition of DigiCert's DDoS assets adding ~$20 million annualized revenue, immediately accretive. Recent highlights include DDoS Threat Intelligence Report noting rising threats and Omnis AI Insights extension for CSPs, reinforcing strategic focus on cybersecurity and observability.