revenue
835–870 $million
FY 2026
official guidance
NETSCOUT SYSTEMS, INC.
Last · NasdaqGS$38.76+0.13 (+0.34%)live · yahoo · 1h ago
Market cap$2.82B72.7M sh
P/E · TTM24.7fwd 13.9 · eps 1.57
Beta—vs S&P 500
Div yield0.00%annual · TTM
52w range
$25.29$45.28
Volume506.0Ksession
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OpenFilings analyst
Our analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
Strong BuyBuyHoldSellStrong Sell
Improving execution and balance-sheet strength are offset by pull-forward-driven growth and limited visibility.
Hold: NETSCOUT delivered $250.7 million of Q3 revenue, $1.00 adjusted diluted EPS and raised FY26 guidance to $835–$870 million of revenue and $2.37–$2.45 EPS.
The underlying case is improving—9-month revenue rose 6%, Cybersecurity grew 9% and margins expanded—but Q3 benefited from orders and renewals pulled forward from Q4, leaving only modest 3.6% revenue growth at the guidance midpoint and meaningful timing risk.
Themes
- Fy26 Guidance
- Order Timing
- Cybersecurity Growth
- Service Assurance
- Enterprise Observability
- 5g Network Slicing
Near term
Q4 results will determine whether the $835–$870 million FY26 revenue range is achievable without further order timing benefits.
Monitor product revenue recovery after Q3 declined to $121.7 million from $128.2 million, and whether service-renewal strength persists.
Share repurchases could support per-share results; the company has $586.2 million of cash, securities and investments and no revolver borrowings.
Longer term
Cybersecurity is the stronger growth engine, up 9.0% in the first nine months versus 4.8% for Service Assurance; sustained mix shift would support growth and margins.
Enterprise revenue grew 9.4%, materially ahead of service-provider revenue growth of 2.2%, making enterprise AI, observability and cybersecurity adoption important to the multi-year thesis.
Omnis AI Sensor, AI Streamer and nGenius Edge Sensor 795 could deepen the platform position in AI-ready network data and observability, but the call provided limited quantified evidence of incremental adoption or durable competitive differentiation.
5G standalone, network slicing and fixed wireless remain potential catalysts, but service-provider customers continue to make measured investments and monetize these initiatives cautiously.
Red flags
Management explicitly said Q3 benefited from Q4 orders being pulled forward, including renewals with backdated maintenance, creating uneven reporting periods and raising the risk of a softer Q4.
One customer and one channel partner each represented approximately 10% of Q3 revenue, indicating episodic concentration even though no customer exceeded 10% for the first nine months.
Q3 EPS growth was helped by the absence of a prior-year loss from a sold foreign investment, limiting the quality of the 6.4% year-over-year comparison.
The call contained no analyst Q&A, so there was no pushback testing competitive displacement, AI-platform differentiation or the durability of the stated pipeline.
Forward outlook
revenue growth
3.6 pct
FY 2026
official guidance
adjusted eps
2.37–2.45 $per share
FY 2026
official guidance
Recommendation history
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
Upcoming earnings
1:30 PM UTC+1
Period
Sep 2026
Est. EPS
$0.67
Est. revenue
218.8M
Earnings transcripts
- Issuer IR
Conference Call Prepared Remarks
NETSCOUT SYSTEMS, INC.
- Issuer webcast
Q1 2026 earnings call transcript
NETSCOUT SYSTEMS, INC.
- Issuer webcast
Conference Call Webcast
NETSCOUT SYSTEMS, INC.
- Issuer IR
Conference Call Prepared Remarks
NETSCOUT SYSTEMS, INC.
- Motley Fool
NetScout (NTCT) Q1 2027 Earnings Call Transcript
NETSCOUT SYSTEMS, INC.
- Issuer webcast
Presentation
NETSCOUT SYSTEMS, INC.
Documents
FormReporting forFiledFlags