Netscout Systems (NTCT) AI Stock Analysis

• Market Cap: $1.75B
• Dividend Yield: N/A
• Average Volume (3M): 431.83K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.90
• Revenue Growth: -0.82%
• EPS Growth: -146.80%
• Country: US
• Employees: 2,273
• Sector: Technology
• Sector Strength: 86
• Industry: Software - Infrastructure
• EPS (TTM): 0.52
• Shares Outstanding: 71,328,735
• 10 Day Avg. Volume: 548,950
• 30 Day Avg. Volume: 431,827
• PEG Ratio: 0.47
• Price to Book (P/B): 1.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.09
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: 0.57
• Enterprise Value/Gross Profit: 2.94
• Enterprise Value/Ebitda: -1.28
• 1Y Price Target: $21.00
• Price Target Upside: -14.29% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 61 Neutral
• Price Target: $24.50 ▲(0.00%Upside)

Netscout Systems' stock is moderately positioned, with strong technical momentum and a solid cash flow balancing out declining revenue and profitability. The earnings call and corporate events provide optimism for future growth, particularly in cybersecurity.

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 Systems generates revenue through the sale of its network performance management and cybersecurity solutions. The company's primary revenue streams include the sales of software licenses, hardware products, and subscription services. Netscout's solutions are often utilized by large enterprises and service providers to enhance their network visibility and operational efficiency. Additionally, the company offers maintenance and support services, which provide recurring revenue and strengthen customer relationships. Significant partnerships with technology vendors and service providers also play a crucial role in expanding their market reach and enhancing their solutions' integration capabilities.

Netscout Systems Financial Statement Overview

Summary

Netscout Systems shows mixed financial performance with declining revenue and ongoing profitability issues. However, strong cash flow and manageable leverage on the balance sheet are positives.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	821.13M	822.68M	829.46M	914.53M	855.58M	831.28M
Gross Profit	623.17M	643.94M	642.04M	691.43M	641.39M	609.18M
EBITDA	-334.26M	-367.60M	134.23M	174.01M	155.10M	147.19M
Net Income	-417.96M	-366.92M	-147.73M	59.65M	35.87M	19.35M
Balance Sheet
Total Assets	2.17B	2.19B	2.60B	2.82B	3.19B	3.09B
Cash, Cash Equivalents and Short-Term Investments	426.90M	491.47M	423.13M	419.00M	703.20M	476.45M
Total Debt	117.76M	43.50M	150.08M	160.47M	415.34M	423.62M
Total Liabilities	654.16M	626.18M	703.24M	790.91M	1.13B	1.08B
Stockholders Equity	1.52B	1.56B	1.89B	2.03B	2.06B	2.01B
Cash Flow
Free Cash Flow	164.12M	212.26M	52.47M	146.00M	285.61M	197.40M
Operating Cash Flow	169.73M	217.67M	58.81M	156.65M	296.01M	213.92M
Investing Cash Flow	1.97M	-5.71M	13.36M	15.30M	-68.35M	24.70M
Financing Cash Flow	-66.74M	-142.01M	-69.35M	-419.43M	-54.16M	-118.31M

Netscout Systems Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.50
• 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 24.5 is above the 20-day moving average (MA) of 23.75, above the 50-day MA of 22.63, and above the 200-day MA of 21.98, indicating a bullish trend. The MACD of 0.52 indicates Negative momentum. The RSI at 61.08 is Neutral, neither overbought nor oversold. The STOCH value of 85.35 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
SPNS	76 Outperform	$1.61B	22.19	16.09%	2.02%	3.84%	10.25%
ATEN	73 Outperform	$1.38B	28.72	24.36%	1.25%	4.90%	9.91%
RDWR	72 Outperform	$1.25B	110.03	3.78%	―	9.54%	―
VRNT	69 Neutral	$1.13B	24.18	5.32%	―	-2.09%	76.96%
EXTR	65 Neutral	$2.37B	―	-78.83%	―	-11.00%	-792.47%
Sector *	63 Neutral	$33.22B	5.99	-11.76%	1.91%	5.54%	-19.87%
NTCT	61 Neutral	$1.75B	―	-21.26%	―	-0.82%	-146.80%

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.