NetScout Systems, Inc. (NTCT) Earnings
NetScout Systems, Inc. is expected to report next earnings on August 6, 2026 (in NaN days), with a consensus EPS estimate of $0.39. NTCT has beaten EPS estimates in 10 of its last 12 reported quarters (average surprise +21.6% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 7, 2026 | $0.46 | $0.52 | +13.0% | $203M | +2.2% |
| Feb 5, 2026 | $0.86 | $1.00 | +16.3% | $233M | -0.2% |
| Nov 6, 2025 | $0.44 | $0.62 | +39.9% | $219M | +9.3% |
| Aug 7, 2025 | $0.29 | $0.34 | +17.2% | $187M | -5.7% |
| May 8, 2025 | $0.52 | $0.52 | +0.0% | $205M | +6.5% |
| Jan 30, 2025 | $0.74 | $0.94 | +27.0% | $252M | +29.4% |
| Oct 24, 2024 | $0.45 | $0.47 | +4.4% | $191M | +1.4% |
| Jul 25, 2024 | $0.13 | $0.28 | +115.4% | $175M | -7.4% |
| May 9, 2024 | $0.53 | $0.55 | +3.8% | $203M | -5.3% |
| Jan 25, 2024 | $0.38 | $0.73 | +92.1% | $218M | +1.6% |
| Nov 2, 2023 | $0.60 | $0.61 | +1.7% | $197M | -15.7% |
| Jul 27, 2023 | $0.31 | $0.31 | +0.0% | $211M | +1.5% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q4 FY2026 · May 7, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
- NETSCOT delivered strong fiscal year 2026 top and bottom line results driven by growth across both cybersecurity and service assurance offerings. - Strengthened innovation engine through introduction of differentiated capability across the portfolio. - Performed well in dynamic operating environment, reinforcing financial foundation and positioning for continued innovation, revenue growth, and margin improvement in fiscal year 2027. - Service assurance offerings invested in innovation like OmniSensor and OmniStreamer. - Cybersecurity offerings continued to grow, completed acquisition of DigiCert Incorporation's DDoS protection business assets. - Had customer wins in both service assurance and cybersecurity. - Looked forward to leveraging expertise in cybersecurity and network observability together with AI - ready data platform in fiscal year 2027, aiming to drive sustained revenue growth, invest in innovation, and maintain cost management and balanced capital allocation.
Guidance
For fiscal year 2027, anticipate revenue in the range of $885 million to $915 million and non - GAAP diluted earnings per share in the range of $2.65 to $2.80. The outlook incorporates the DigiCert DDoS asset acquisition with an initial annualized revenue run rate contribution of approximately $20 million. Expect non - GAAP effective tax rate to be approximately 20% and weighted average diluted shares outstanding of approximately 7.74 to 75 million shares. Expect revenue in the first quarter of fiscal year 2027 to grow in the mid single digits range and earnings per share to increase at approximately twice the rate of revenue growth compared with the same quarter last fiscal year.
Segment performance
For the full fiscal year 2026, service assurance revenue increased approximately 3% year over year, driven by growth in the enterprise customer vertical with strong contributions from federal and non - federal government - related spending. Cybersecurity revenue increased approximately 8% year over year with growth across both enterprise and service - wide verticals. Service assurance accounted for approximately 64% of total revenue and cybersecurity accounted for the remaining 36%. For customer verticals, enterprise revenue grew by 5.4% and service provider revenue grew by 3.3% in the full fiscal year 2026, with enterprise accounting for approximately 58% of total revenue and service provider accounting for the remaining 42%. For the full fiscal year 2026, the United States represented 55% of revenue and international represented the remaining 45% of revenue.
Risks & headwinds
- General concerns about macroeconomic landscape such as tariffs, AI supply chain dynamics, and the war in Iran. - External environment could get worse, which needs to be cautiously对待.
Analyst Q&A
Q: Talk more about the broader macroeconomic landscape and demand trends, specifically uncertainties from tariffs, AI supply chain dynamics, or the war in Iran and impact on close rates.
A: There is general concerns about what could happen tomorrow. So far, direct impact on NETSCOT has been minimal, but we are still cautious. People are always cautious and hold budgets, which sometimes are flushed in the December quarter.
Q: How did the Fed business perform this quarter and trends seen there?
A: The Fed business was good for NETSCOUT for the full fiscal year. Federal generally runs in the mid of digits of total revenue and had a strong pipeline, though it was high in fiscal year 26.
Q: Update on sensor and streaming business and impact of legal actions on botnets.
A: The sensor and streaming business was in the range of 10 - 15 million. There is great interest in the sensors and streamers targeting DPI in observability and AI space, but customers are still figuring out their AI strategy. Legal actions on botnets were backward looking and don't reduce the threat landscape.
Q: Enterprise customers and AI, moving from pilots to production use cases and incremental workloads.
A: Monitoring air infrastructure is incremental business. The agentic AI space is promising as our data set may be important.
Q: Backlog, how much up year over year and sequentially and reason.
A: Backlog is more about timing. Some large orders came in at the end of the quarter and customers didn't need them yet, not due to supply chain constraints.