NetScout Systems (NASDAQ:NTCT) Releases Earnings Results, Beats Estimates By $0.05 EPS

NetScout Systems (NASDAQ:NTCT) issued its quarterly earnings data on Thursday. The technology company reported $0.71 earnings per share for the quarter, topping the consensus estimate of $0.66 by $0.05, FiscalAI reports. NetScout Systems had a net margin of 14.62% and a return on equity of 9.63%. The company had revenue of $222.19 million for the quarter, compared to analysts’ expectations of $218.77 million. During the same quarter in the previous year, the firm posted $0.62 earnings per share. NetScout Systems’s revenue for the quarter was up 1.4% on a year-over-year basis. NetScout Systems updated its FY 2027 guidance to 2.650-2.800 EPS.

Here are the key takeaways from NetScout Systems’ conference call:

• NetScout reported second-quarter revenue of $222.2 million, up 1.4%, and non-GAAP diluted EPS of $0.71 versus $0.62 a year earlier; operating margin also expanded to 28.3%. First-half revenue rose 6.6% and EPS increased to $1.23.
• Management reaffirmed its fiscal 2027 outlook for revenue of $885 million to $915 million and non-GAAP EPS of $2.65 to $2.80. For Q3, it expects revenue of $240 million to $250 million and EPS of $0.90 to $0.95, while noting a tougher year-over-year comparison and higher event costs.
• First-half Service Assurance revenue grew 8.2% and cybersecurity revenue rose 3.8%; enterprise revenue increased 9.1%, while service-provider revenue grew 2.8%. Federal orders supported Service Assurance, but management cautioned that federal order timing is unpredictable and service-provider spending remains tight.
• Executives described AI-ready Smart Data and Omnis as potential longer-term growth drivers, citing increased customer interest and a growing pipeline. However, customers are still developing AI strategies, and long sales cycles make near-term revenue contribution uncertain.
• NetScout repurchased approximately 2 million shares for $77 million in Q2 and said it intends to remain active in buybacks, subject to market conditions. It ended the quarter with $571.3 million in cash, equivalents and marketable securities and no revolver borrowings.

NetScout Systems Trading Down 1.0%

NASDAQ NTCT traded down $0.32 on Friday, hitting $31.51. 781,494 shares of the company were exchanged, compared to its average volume of 497,184. NetScout Systems has a 12 month low of $25.29 and a 12 month high of $45.28. The company has a market cap of $2.29 billion, a PE ratio of 17.90 and a beta of 0.72. The stock has a fifty day moving average of $38.66 and a 200-day moving average of $36.49.

Key Stories Impacting NetScout Systems

Here are the key news stories impacting NetScout Systems this week:

• Positive Sentiment: Fiscal Q2 2027 adjusted EPS was $0.71, beating the $0.66 consensus and rising from $0.62 a year earlier. Revenue of $222.19 million also topped estimates of $218.77 million. Zacks earnings report
• Neutral Sentiment: NetScout maintained fiscal 2027 EPS guidance of $2.65–$2.80, above the $2.62 consensus. Revenue guidance of $885 million–$915 million brackets analysts’ $904.9 million estimate, while its midpoint is slightly below that forecast.
• Negative Sentiment: RBC cut its price target to $35 from $43 and kept a “sector perform” rating. The new target still implies about 11.1% upside from the cited $31.51 share price, but the sizable reduction may weigh on sentiment. RBC ratings information
• Negative Sentiment: Despite the quarterly beats, revenue increased just 1.4% year over year, suggesting modest growth and potentially limiting enthusiasm about the results.

Insider Transactions at NetScout Systems

In other NetScout Systems news, COO Sanjay Munshi sold 2,269 shares of the stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $39.27, for a total value of $89,103.63. Following the transaction, the chief operating officer owned 6,729 shares in the company, valued at approximately $264,247.83. This represents a 25.22% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Michael Szabados sold 4,000 shares of the stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $37.70, for a total value of $150,800.00. Following the completion of the transaction, the director owned 41,654 shares in the company, valued at approximately $1,570,355.80. The trade was a 8.76% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 21,269 shares of company stock valued at $813,184. 4.74% of the stock is currently owned by corporate insiders.

Analyst Ratings Changes

Several research analysts have commented on the company. B. Riley Financial reaffirmed a “buy” rating and set a $50.00 target price on shares of NetScout Systems in a report on Sunday, August 9th. after the company reported F1Q27 results. Royal Bank Of Canada decreased their price target on NetScout Systems from $43.00 to $35.00 and set a “sector perform” rating for the company in a research note on Friday. Weiss Ratings raised shares of NetScout Systems from a “hold (c)” rating to a “hold (c+)” rating in a research report on Thursday, October 8th. Zacks Research downgraded shares of NetScout Systems from a “strong-buy” rating to a “hold” rating in a research report on Thursday, October 8th. Finally, Wall Street Zen lowered shares of NetScout Systems from a “strong-buy” rating to a “hold” rating in a report on Saturday. One investment analyst has rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $42.50.

About NetScout Systems

NetScout Systems, Inc (NASDAQ: NTCT) provides network performance management, service assurance and cybersecurity solutions for enterprises, communications service providers, government organizations and other large institutions. Its technologies are designed to help customers monitor network traffic, identify performance issues, maintain service availability and detect or respond to cyberthreats.

The company’s offerings include the nGeniusONE service assurance platform, InfiniStream network monitoring and packet-based visibility technologies, and solutions associated with its Arbor portfolio for distributed denial-of-service protection, network detection and response, and other cybersecurity applications.