NetScout Systems (NTCT) Q4 2025 earnings summary

Executive summary

• FY25 revenue was $823M, essentially flat year-over-year after adjusting for divestitures, with Q4 revenue at $205M, up 0.8% year-over-year, driven by strong Cybersecurity product performance.

• Non-GAAP EPS for FY25 was $2.22, up 1% year-over-year, reflecting effective cost management.

• Leadership transitions announced: COO and CFO retiring, with successors named and transition effective June 1, 2025.

Financial highlights

• Q4 FY25 revenue: $205M (+0.8% YoY); product revenue: $89.5M (+0.1% YoY); service revenue: $115.5M (+1.3% YoY).

• Q4 gross margin: 79.2% (+2 pts YoY); operating margin: 23.1% (up from 19.2% YoY); non-GAAP EPS: $0.52 (down 5.5% YoY).

• FY25 gross margin: 80% (+0.6 pts YoY); operating margin: 23.7% (+1.1 pts YoY); annual tax rate: 19%.

• Free cash flow for FY25 was $211M; cash and investments at year-end totaled $492.5M, up $68.4M YoY.

• FY25 non-GAAP net income was $160.4M; GAAP net loss was $366.9M due to a $427M goodwill impairment.

Outlook and guidance

• FY26 revenue expected between $825M and $865M; non-GAAP EPS guidance is $2.25–$2.40.

• Q1 FY26 revenue and EPS expected to grow 3–5% year-over-year.

• Effective tax rate for FY26 projected at 20%; diluted shares outstanding 74–75M.

• Guidance incorporates macroeconomic, tariff, and restructuring uncertainties.

• Company expects to be active in share repurchases during FY26.