Netscout Systems (NTCT) AI Stock Analysis

• Market Cap: $1.93B
• Dividend Yield: N/A
• Average Volume (3M): 486.16K
• Price to Earnings (P/E): 27.3
• Beta (1Y): 0.94
• Revenue Growth: 5.29%
• EPS Growth: N/A
• Country: US
• Employees: 2,273
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.62
• Shares Outstanding: 71,875,270
• 10 Day Avg. Volume: 499,567
• 30 Day Avg. Volume: 486,157
• PEG Ratio: -0.03
• Price to Book (P/B): 0.97
• Price to Sales (P/S): 1.83
• P/FCF Ratio: 7.10
• Enterprise Value/Market Cap: 0.67
• Enterprise Value/Revenue: 1.49
• Enterprise Value/Gross Profit: 1.89
• Enterprise Value/Ebitda: 8.06
• 1Y Price Target: $32.00
• Price Target Upside: 9.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: $30.00 ▲(2.56% Upside)

Netscout Systems demonstrates a solid financial position with strong cash flow and improving profitability, supported by positive earnings call insights. The technical indicators show bullish momentum, although the valuation suggests limited upside. The company's growth in the cybersecurity segment is a significant strength, but challenges in other areas warrant caution.

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 enables customers to predict, preempt, and resolve network and service delivery problems, as well as facilitate the optimization and capacity planning of their network infrastructures; and specialized platforms and analytic modules that enable its customers to analyze and troubleshoot traffic in radio access and Wi-Fi networks. It also provides nGeniusPULSE, an active testing tool that enables enterprises to identify infrastructure performance issues and determine application availability, reliability, and performance; and nGenius Business Analytics solution, which enables service providers to analyze their network traffic. In addition, the company offers ISNG, an advanced passive network probe; packet flow systems that deliver targeted network traffic access to various monitoring and security tools and systems; and a suite of test access points that enable non-disruptive access to network traffic. Further, it provides cybersecurity solutions to protect their networks against distributed denial of service attacks under the Arbor brand, such as Arbor Sightline, Arbor Threat Mitigation System, Arbor Insight, Arbor Edge Defense, and Arbor Cloud. Additionally, it offers advanced threat detection solutions, such as Omnis Cyber Investigator. It serves enterprise customers in various industries, including financial services, technology, manufacturing, healthcare, utilities, education, transportation, and retail; mobile operators, wireline operators, cable operators, Internet service providers, and cloud providers; and governmental agencies through a direct sales force, and indirect reseller and distribution channels. NetScout Systems, Inc. was incorporated in 1984 and is headquartered in Westford, Massachusetts.

How the Company Makes Money

Netscout generates revenue primarily through the sale of its software and hardware products, which are designed to enhance network performance and security. The company operates on a subscription-based model for many of its software solutions, providing recurring revenue through annual subscriptions and maintenance contracts. Additionally, Netscout earns revenue from professional services, such as consulting, deployment, and training, which help clients integrate its solutions into their existing systems. Strategic partnerships with telecommunications companies and technology providers also contribute to its earnings, as these alliances often lead to joint offerings and expanded market reach, enhancing overall sales.

Netscout Systems Financial Statement Overview

Summary

Netscout Systems shows strong cash flow performance and improving profitability metrics. The low leverage enhances financial stability, while the recent recovery in margins and ROE indicates a positive trajectory. However, historical volatility in earnings and operational performance suggests potential risks.

Income Statement

Netscout Systems shows a positive revenue growth in the TTM period, with a Gross Profit Margin of 78.7% and a Net Profit Margin of 8.7%, indicating strong profitability. However, the company experienced negative EBIT and EBITDA margins in the previous annual period, reflecting operational challenges. The recent improvement in margins suggests a recovery, but the historical volatility poses a risk.

Balance Sheet

The company maintains a low Debt-to-Equity Ratio of 0.027 in the TTM period, indicating low leverage and financial stability. The Return on Equity improved to 4.8%, showing better profitability. However, the equity ratio is not explicitly calculated, but the low debt levels suggest a strong equity position. The improvement in ROE is a positive sign, but past negative returns highlight potential risks.

Cash Flow

Netscout Systems demonstrates strong cash flow performance with a Free Cash Flow Growth Rate of 16.26% in the TTM period. The Operating Cash Flow to Net Income Ratio is 0.65, indicating efficient cash generation relative to net income. The Free Cash Flow to Net Income Ratio is nearly 1, showing robust cash flow relative to earnings. The consistent positive cash flow growth enhances financial flexibility.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	862.77M	822.68M	829.46M	914.53M	855.58M	831.28M
Gross Profit	683.43M	643.94M	642.04M	691.43M	641.39M	609.18M
EBITDA	159.92M	-294.85M	-60.87M	174.01M	155.10M	139.01M
Net Income	89.58M	-366.92M	-147.73M	59.65M	35.87M	19.35M
Balance Sheet
Total Assets	2.18B	2.19B	2.60B	2.82B	3.19B	3.09B
Cash, Cash Equivalents and Short-Term Investments	516.86M	491.47M	423.13M	419.00M	703.20M	476.45M
Total Debt	43.55M	43.50M	150.08M	160.47M	415.34M	423.62M
Total Liabilities	602.63M	626.18M	703.24M	790.91M	1.13B	1.08B
Stockholders Equity	1.57B	1.56B	1.89B	2.03B	2.06B	2.01B
Cash Flow
Free Cash Flow	255.81M	212.26M	52.47M	146.00M	285.61M	197.40M
Operating Cash Flow	263.18M	217.67M	58.81M	156.65M	296.01M	213.92M
Investing Cash Flow	-20.41M	-7.00M	13.36M	15.30M	-68.35M	24.70M
Financing Cash Flow	-125.02M	-142.01M	-69.35M	-419.43M	-54.16M	-118.31M

Netscout Systems Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 29.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 29.25 is above the 20-day moving average (MA) of 26.77, above the 50-day MA of 26.08, and above the 200-day MA of 23.38, indicating a bullish trend. The MACD of 0.60 indicates Negative momentum. The RSI at 69.73 is Neutral, neither overbought nor oversold. The STOCH value of 50.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NTCT.

Netscout Systems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATEN	77 Outperform	$1.26B	25.68	23.88%	1.37%	10.27%	3.52%
NTCT	73 Outperform	$1.93B	27.29	4.88%	―	5.29%	―
BOX	71 Outperform	$4.57B	25.19	163.44%	―	6.29%	62.03%
RDWR	65 Neutral	$1.01B	63.48	5.09%	―	10.40%	―
FIVN	63 Neutral	$1.76B	238.54	1.42%	―	14.21%	―
VRNT	62 Neutral	$1.23B	30.75	4.72%	―	-2.32%	7.70%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Netscout Systems Corporate Events

NETSCOUT Raises Outlook After Strong Q2 Results

NETSCOUT SYSTEMS, INC. is a prominent provider of enterprise performance management, carrier service assurance, cybersecurity, and DDoS protection solutions, serving major enterprises, service providers, and public sector organizations worldwide.

Netscout Systems Approves Equity Plan Amendment

On September 10, 2025, NetScout Systems, Inc. held its annual meeting where stockholders approved an amendment to increase the number of shares in the company’s 2019 Equity Incentive Plan by 3.5 million. Additionally, stockholders elected four directors for three-year terms, approved executive compensation, and ratified PricewaterhouseCoopers LLP as the independent auditor for the fiscal year ending March 31, 2026.

The most recent analyst rating on (NTCT) stock is a Buy with a $33.00 price target. To see the full list of analyst forecasts on Netscout Systems stock, see the NTCT Stock Forecast page.

NETSCOUT’s Earnings Call Highlights Growth and Challenges

The latest earnings call from NETSCOUT painted a largely positive picture, with the company showcasing strong revenue and earnings growth. This optimistic outlook is primarily fueled by advancements in cybersecurity and new product enhancements. The company also highlighted successful customer acquisitions and a robust liquidity position. However, challenges such as a decline in service provider revenue and macroeconomic uncertainties were acknowledged.

NETSCOUT Reports Strong Start to Fiscal Year 2026

NETSCOUT SYSTEMS, INC., a prominent player in the enterprise performance management and cybersecurity sector, specializes in providing solutions for service assurance and DDoS protection. The company serves a diverse clientele, including large enterprises, service providers, and public sector organizations.