NetScout Systems (NTCT) Q4 2026 earnings summary

Executive summary

• Achieved strong fiscal year 2026 results with 4.5% revenue growth to $859.5M, margin expansion, and innovation in cybersecurity and service assurance offerings.

• Introduced AI-ready smart data, expanded observability, and adaptive threat protection, reinforcing strategic objectives.

• Completed acquisition of DigiCert Inc.'s DDoS protection business, enhancing cloud-based service capabilities and expected to be immediately accretive.

• Secured significant customer wins, including a large European telecom and a global chip manufacturer.

• Maintained disciplined execution and accelerated product innovation despite a dynamic macro environment.

Financial highlights

• Q4 revenue was $203M, down 1% year-over-year; full-year revenue grew 4.5% to $859.5M.

• Q4 diluted EPS was $0.52, flat year-over-year; full-year diluted EPS rose nearly 12% to $2.48, exceeding guidance.

• Gross margin for FY26 was 80.8% (up 0.8 pts); operating margin was 25.4% (up 1.7 pts); free cash flow reached $285.4M; cash and securities at year-end totaled $705.1M.

• Non-GAAP net income for FY26 was $182.0M, up 13.5%; adjusted EBITDA was $228.1M (26.5% of revenue).

• No customer represented more than 10% of revenue for the quarter or year.

Outlook and guidance

• FY27 revenue expected between $885M and $915M; non-GAAP EPS projected at $2.65–$2.80, with DigiCert DDoS acquisition expected to add ~$20M annualized revenue.

• Q1 FY27 revenue projected to grow mid-single digits; EPS to grow at about twice the revenue growth rate.

• Non-GAAP effective tax rate anticipated at ~20%, with 74–75M diluted shares outstanding.

• Continued focus on innovation, cost management, and balanced capital allocation.