Netscout Systems (NTCT) AI Stock Analysis

• Market Cap: $1.80B
• Dividend Yield: N/A
• Average Volume (3M): 610.52K
• Price to Earnings (P/E): 25.0
• Beta (1Y): 0.98
• Revenue Growth: 5.29%
• EPS Growth: N/A
• Country: US
• Employees: 2,273
• Sector: Technology
• Sector Strength: 83
• Industry: Software - Infrastructure
• EPS (TTM): 0.34
• Shares Outstanding: 71,875,270
• 10 Day Avg. Volume: 531,676
• 30 Day Avg. Volume: 610,524
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.72
• Enterprise Value/Revenue: 1.54
• Enterprise Value/Gross Profit: 1.96
• Enterprise Value/Ebitda: 8.04
• 1Y Price Target: $27.00
• Price Target Upside: 8.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 69 Neutral
• Price Target: $25.00 ▲(0.56% Upside)

Netscout Systems' overall stock score is driven by its strong financial performance and positive earnings call, highlighting growth in the cybersecurity segment and improved profit margins. Technical analysis presents a neutral outlook, while valuation suggests moderate pricing. Challenges in specific revenue segments pose risks, but the company's financial stability and strategic focus on growth areas support a positive outlook.

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 mixed financial performance. While there are challenges with declining revenue and profitability, the company maintains a strong cash flow position and manageable leverage. However, the decrease in equity and assets is concerning.

Income Statement

Netscout Systems has experienced declining revenue over the past year, with total revenue decreasing from $914.5 million in 2023 to $822.7 million in 2025. The company has also faced consistent operating losses, as indicated by negative EBIT and net income in the most recent year. Gross profit margins have remained stable, but the net profit margin has been negative, highlighting profitability challenges.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, indicating manageable leverage. There is a significant decrease in stockholders' equity, which can impact financial stability. The equity ratio remains healthy, suggesting a stable asset base. However, the overall decrease in total assets and equity over time is a concern.

Cash Flow

Netscout Systems has maintained a positive free cash flow, which is a positive indicator of financial health. The company's operating cash flow has grown significantly compared to previous years, improving its ability to cover operational expenses. The free cash flow to net income ratio is favorable, showing effective cash management despite negative net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	834.86M	822.68M	829.46M	914.53M	855.58M	831.28M
Gross Profit	657.07M	643.94M	642.04M	691.43M	641.39M	609.18M
EBITDA	160.28M	-294.85M	-60.87M	174.01M	155.10M	139.01M
Net Income	72.78M	-366.92M	-147.73M	59.65M	35.87M	19.35M
Balance Sheet
Total Assets	2.16B	2.19B	2.60B	2.82B	3.19B	3.09B
Cash, Cash Equivalents and Short-Term Investments	532.51M	491.47M	423.13M	419.00M	703.20M	476.45M
Total Debt	41.53M	43.50M	150.08M	160.47M	415.34M	423.62M
Total Liabilities	609.88M	626.18M	703.24M	790.91M	1.13B	1.08B
Stockholders Equity	1.55B	1.56B	1.89B	2.03B	2.06B	2.01B
Cash Flow
Free Cash Flow	246.78M	212.26M	52.47M	146.00M	285.61M	197.40M
Operating Cash Flow	252.79M	217.67M	58.81M	156.65M	296.01M	213.92M
Investing Cash Flow	-21.19M	-7.00M	13.36M	15.30M	-68.35M	24.70M
Financing Cash Flow	-108.63M	-142.01M	-69.35M	-419.43M	-54.16M	-118.31M

Netscout Systems Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 24.86 is above the 20-day moving average (MA) of 23.29, above the 50-day MA of 23.07, and above the 200-day MA of 22.43, indicating a bullish trend. The MACD of 0.66 indicates Negative momentum. The RSI at 67.90 is Neutral, neither overbought nor oversold. The STOCH value of 86.71 is Negative, 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	76 Outperform	$1.29B	25.73	24.39%	1.36%	11.04%	18.70%
BOX	73 Outperform	$4.74B	26.30	163.44%	―	6.29%	62.03%
VRNT	72 Outperform	$1.23B	30.89	4.72%	―	-2.32%	7.70%
FIVN	70 Outperform	$2.03B	291.25	1.42%	―	14.21%	―
NTCT	69 Neutral	$1.80B	25.03	4.88%	―	5.29%	―
RDWR	66 Neutral	$1.06B	77.29	4.46%	―	11.51%	―
Sector *	61 Neutral	$35.52B	8.84	-11.04%	1.87%	8.55%	-8.14%

Netscout Systems Corporate Events

Netscout Systems Announces CFO and COO Retirement

On May 5, 2025, NETSCOUT SYSTEMS announced the retirement of its Chief Financial Officer, Jean Bua, and Chief Operating Officer, Michael Szabados, effective May 31, 2025. They will transition to advisory roles until June 2026. Anthony Piazza and Sanjay Munshi will assume the roles of CFO and COO, respectively, on June 1, 2025. The company also reported strong financial results for the fourth quarter and full fiscal year 2025, with a focus on cybersecurity solutions driving revenue. NETSCOUT aims to continue investing in innovation and maintaining customer relationships to support its long-term strategy.