Netscout (NTCT)
NASDAQ:NTCT
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Netscout Systems
(NASDAQ:NTCT)
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Rating:76Outperform
Price Target:
$44.00
▲(31.15% Upside)
Action:Reiterated
Date:05/15/26
The score is primarily supported by strong financial footing (low leverage and robust cash generation) and constructive FY2027 outlook (growth guidance, margin strength, backlog momentum, and an accretive DDoS asset add-on). Technicals are favorable with a sustained uptrend, while valuation is only mid-range at ~24x earnings and execution risks remain around revenue/order timing volatility and macro sensitivity.
Positive Factors
Conservative balance sheet
Very low leverage and a large cash stock provide durable financial flexibility: supports opportunistic M&A, sustained buybacks, and investment in R&D or product rollouts without relying on external funding, reducing refinancing and liquidity risk across cycles.
Negative Factors
Order timing volatility
Heavy sensitivity to customer ordering cadence produces unpredictable revenue recognition and backlog swings, complicating capacity planning, R&D cadence and SG&A leverage. This structural booking volatility can make earnings and margin sustainability harder to predict over multiple quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Very low leverage and a large cash stock provide durable financial flexibility: supports opportunistic M&A, sustained buybacks, and investment in R&D or product rollouts without relying on external funding, reducing refinancing and liquidity risk across cycles.
Read all positive factors
Netscout Systems Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down where sales are coming from across regions, highlighting which markets drive growth and where the company is exposed to local economic or currency swings. For investors, regional splits reveal demand patterns, sales concentration risks, and how global trends or government spending could affect future revenue.
Breaks down where sales are coming from across regions, highlighting which markets drive growth and where the company is exposed to local economic or currency swings. For investors, regional splits reveal demand patterns, sales concentration risks, and how global trends or government spending could affect future revenue.
Data provided by:
The Fly
The FlyNetscout Systems (NTCT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.93B
Dividend YieldN/A
Average Volume (3M)565.25K
Price to Earnings (P/E)23.9
Beta (1Y)0.98
Revenue Growth4.47%
EPS GrowthN/A
CountryUS
Employees2,273
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)1.32
Shares Outstanding71,495,220
10 Day Avg. Volume597,476
30 Day Avg. Volume565,247
Financial Highlights & Ratios
PEG Ratio-0.19
Price to Book (P/B)1.38
Price to Sales (P/S)2.65
P/FCF Ratio7.99
Enterprise Value/Market Cap0.81
Enterprise Value/Revenue2.78
Enterprise Value/Gross Profit3.55
Enterprise Value/Ebitda13.64
Forecast
1Y Price Target
$36.50Price Target Upside8.79% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)2.53
Revenue Forecast (FY)$902.42M
Netscout Systems Business Overview & Revenue Model
Company Description
NetScout Systems, Inc. provides service assurance and cybersecurity solutions for protect digital business services against disruptions in the United States, Europe, Asia, and internationally. The company offers nGeniusONE management software that...
How the Company Makes Money
NETSCOUT makes money by selling network and security visibility products and associated services to enterprises, government organizations, and telecommunications/service-provider customers. Its primary revenue streams are (1) product revenue from ...
Netscout Systems Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
The call highlights a return to full-year revenue growth, notable margin expansion, strong free cash flow and an improved balance sheet, alongside strategic momentum in cybersecurity, product backlog gains, a small accretive acquisition and constructive FY2027 guidance. Near-term weakness was largely timing-related (Q4 product revenue and slight quarterly margin compression) and management flagged macro and AI-adoption timing risks. Overall, the positive fundamentals, cash generation, and growth in higher-margin cybersecurity offerings outweigh the transitory quarter-level challenges and macro caution.Positive Updates
Full Fiscal Year Revenue and EPS Growth
Revenue for FY2026 increased 4.5% year-over-year to $859.5 million and diluted non-GAAP EPS grew nearly 12% to $2.48, exceeding the high end of guidance.
Negative Updates
Q4 Revenue and Product Revenue Weakness (Timing-Related)
Total revenue in Q4 was $203 million, down 1% YoY; product revenue for Q4 declined to $80.7 million from $89.5 million YoY, primarily due to customer order timing shifts (pull-forward into Q3) and mix.
Read all updates
Q4-2026 Updates
Positive
Negative
Full Fiscal Year Revenue and EPS Growth
Revenue for FY2026 increased 4.5% year-over-year to $859.5 million and diluted non-GAAP EPS grew nearly 12% to $2.48, exceeding the high end of guidance.
Read all positive updates
Company Guidance
NetScout guided fiscal 2027 revenue of $885 million to $915 million (versus FY26 revenue of $859.5 million) and non‑GAAP diluted EPS of $2.65 to $2.80 (vs. FY26 non‑GAAP EPS of $2.48), reflecting year‑over‑year growth that incorporates the May 1 DigiCert DDoS asset acquisition (expected to be immediately accretive with an initial annualized revenue run‑rate of ~$20 million, with a partial benefit in FY27); management also expects a non‑GAAP effective tax rate of ~20% and weighted average diluted shares of ~74–75 million, and called for Q1 FY27 revenue growth in the mid‑single‑digits with EPS rising at roughly twice the rate of revenue growth.Netscout Systems Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
84
Very Positive
Cash Flow
78
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 859.48M | 822.68M | 829.46M | 914.53M | 855.58M |
| Gross Profit | 637.85M | 643.94M | 642.04M | 691.43M | 641.39M |
| EBITDA | 168.20M | -294.85M | -60.87M | 174.01M | 146.72M |
| Net Income | 95.53M | -366.92M | -147.73M | 59.65M | 35.87M |
Balance Sheet | |||||
| Total Assets | 2.35B | 2.19B | 2.60B | 2.82B | 3.19B |
| Cash, Cash Equivalents and Short-Term Investments | 667.96M | 491.47M | 423.13M | 419.00M | 703.20M |
| Total Debt | 39.59M | 76.01M | 182.59M | 209.29M | 469.26M |
| Total Liabilities | 705.26M | 626.18M | 703.24M | 790.91M | 1.13B |
| Stockholders Equity | 1.65B | 1.56B | 1.89B | 2.03B | 2.06B |
Cash Flow | |||||
| Free Cash Flow | 285.43M | 210.97M | 52.47M | 146.00M | 285.61M |
| Operating Cash Flow | 294.54M | 217.67M | 58.81M | 156.65M | 296.01M |
| Investing Cash Flow | -92.83M | -7.00M | 13.36M | 15.30M | -68.35M |
| Financing Cash Flow | -76.69M | -142.01M | -69.35M | -419.43M | -54.16M |
Netscout Systems Technical Analysis
Positive
33.55
Price Trends
34.14
Positive
31.27
Positive
28.64
Positive
Market Momentum
1.80
Negative
71.29
Negative
55.45
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NTCT, the sentiment is Positive. The current price of 33.55 is below the 20-day moving average (MA) of 37.17, below the 50-day MA of 34.14, and above the 200-day MA of 28.64, indicating a bullish trend. The MACD of 1.80 indicates Negative momentum. The RSI at 71.29 is Negative, neither overbought nor oversold. The STOCH value of 55.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NTCT.
Netscout Systems Risk Analysis
Netscout Systems disclosed 34 risk factors in its most recent earnings report. Netscout Systems reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Netscout Systems Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $2.93B | 23.87 | 5.96% | ― | 4.47% | ― | |
76 Outperform | $1.74B | 15.82 | 7.37% | ― | 9.31% | ― | |
71 Outperform | $1.27B | 79.46 | 5.71% | ― | 9.83% | 65.00% | |
71 Outperform | $2.10B | 34.43 | 21.19% | 1.33% | 12.08% | -8.14% | |
68 Neutral | $3.59B | 35.80 | 115.65% | ― | 7.99% | -56.61% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
NTCT
Netscout Systems
41.01
18.17
79.55%
RDWR
Radware
29.53
6.23
26.74%
ATEN
A10 Networks
29.16
12.33
73.30%
FIVN
Five9
22.76
-3.83
-14.40%
BOX
Box
25.90
-5.19
-16.69%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.