NetScout Systems (NTCT)
Market Price (9/16/2026): $38.36 | Market Cap: $2.8 BilSector: Information Technology | Industry: Communications Equipment
NetScout Systems (NTCT)
Market Price (9/16/2026): $38.36Market Cap: $2.8 BilSector: Information TechnologyIndustry: Communications Equipment
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Cash is significant % of market capNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is -21% Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 31%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 29% Attractive yieldFCF Yield is 9.4% Low stock price volatilityVol 12M is 32% Megatrend and thematic driversMegatrends include Cybersecurity, 5G & Advanced Connectivity, and Cloud Computing. Themes include Network Security, Show more. | Weak multi-year price returns3Y Excs Rtn is -30% | Weak revenue growthRev Chg 3Y AvgRevenue Change % averaged over trailing 3 years is -0.8% Key risksNTCT key risks include [1] the eroding relevance of its legacy products due to the industry's shift to the cloud, Show more. |
| Cash is significant % of market capNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is -21% |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 31%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 29% |
| Attractive yieldFCF Yield is 9.4% |
| Low stock price volatilityVol 12M is 32% |
| Megatrend and thematic driversMegatrends include Cybersecurity, 5G & Advanced Connectivity, and Cloud Computing. Themes include Network Security, Show more. |
| Weak multi-year price returns3Y Excs Rtn is -30% |
| Weak revenue growthRev Chg 3Y AvgRevenue Change % averaged over trailing 3 years is -0.8% |
| Key risksNTCT key risks include [1] the eroding relevance of its legacy products due to the industry's shift to the cloud, Show more. |
Qualitative Assessment
AI Analysis | Feedback
NetScout Systems (NTCT) stock has lost about 10% since 5/31/2026 because of the following key factors:
1. Disappointing Fiscal Q1 2027 Earnings Report Details: Despite reporting better-than-expected revenue of $210.4 million and diluted EPS of $0.52 for fiscal Q1 2027, which ended June 30, 2026, NetScout's stock plunged 9.3% to $37.21 on August 6, 2026, the day of the announcement. This negative market reaction stemmed from concerns regarding the quality of the revenue beat, which included $10-15 million in government orders pulled forward from future periods, and a notably slow year-over-year growth of only 1% in the cybersecurity segment.
2. Weak Fiscal Q2 2027 Revenue Outlook: Further impacting investor confidence was the company's forecast for fiscal Q2 2027 (ending September 30, 2026) revenue to be flat year-over-year, attributed to timing shifts in orders. This outlook signaled a lack of strong near-term growth catalysts and contributed to the stock's negative trend in the specified period.
Show more
NetScout Systems (NTCT) stock has lost about 10% since 5/31/2026 because of the following key factors:
1. Disappointing Fiscal Q1 2027 Earnings Report Details: Despite reporting better-than-expected revenue of $210.4 million and diluted EPS of $0.52 for fiscal Q1 2027, which ended June 30, 2026, NetScout's stock plunged 9.3% to $37.21 on August 6, 2026, the day of the announcement. This negative market reaction stemmed from concerns regarding the quality of the revenue beat, which included $10-15 million in government orders pulled forward from future periods, and a notably slow year-over-year growth of only 1% in the cybersecurity segment.
2. Weak Fiscal Q2 2027 Revenue Outlook: Further impacting investor confidence was the company's forecast for fiscal Q2 2027 (ending September 30, 2026) revenue to be flat year-over-year, attributed to timing shifts in orders. This outlook signaled a lack of strong near-term growth catalysts and contributed to the stock's negative trend in the specified period.
3. Valuation Concerns and Industry Headwinds: The stock faced concerns about its valuation, with some analyses indicating it was "Significantly Overvalued" on August 19, 2026, trading at $39.27 per share against a GuruFocus Value of $23.86. Additionally, while some analysts upgraded the stock, the average price target from several Wall Street analysts was $38.00 as of August 30, 2026, suggesting a potential downside of 2.14% from its then-current price of $38.83. These valuation pressures were compounded by broader industry headwinds such as rising cloud-native competition and pressure on NetScout's legacy offerings due to cloud migration and IT stack consolidation.
Show less
Stock Movement Drivers
Fundamental Drivers
The -7.8% change in NTCT stock from 5/31/2026 to 9/15/2026 was primarily driven by a -27.3% change in the company's P/E Multiple.| (LTM values as of) | 5312026 | 9152026 | Change |
|---|---|---|---|
| Stock Price ($) | 41.62 | 38.37 | -7.8% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 859 | 883 | 2.8% |
| Net Income Margin (%) | 11.1% | 13.7% | 23.3% |
| P/E Multiple | 31.3 | 22.8 | -27.3% |
| Shares Outstanding (Mil) | 72 | 72 | 0.1% |
| Cumulative Contribution | -7.8% |
Market Drivers
5/31/2026 to 9/15/2026| Return | Correlation | |
|---|---|---|
| NTCT | -7.8% | |
| Market (SPY) | 0.1% | 45.4% |
| Sector (XLK) | -3.8% | 53.7% |
Fundamental Drivers
The 31.4% change in NTCT stock from 2/28/2026 to 9/15/2026 was primarily driven by a 23.1% change in the company's Net Income Margin (%).| (LTM values as of) | 2282026 | 9152026 | Change |
|---|---|---|---|
| Stock Price ($) | 29.21 | 38.37 | 31.4% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 861 | 883 | 2.5% |
| Net Income Margin (%) | 11.1% | 13.7% | 23.1% |
| P/E Multiple | 22.0 | 22.8 | 3.5% |
| Shares Outstanding (Mil) | 72 | 72 | 0.6% |
| Cumulative Contribution | 31.4% |
Market Drivers
2/28/2026 to 9/15/2026| Return | Correlation | |
|---|---|---|
| NTCT | 31.4% | |
| Market (SPY) | 10.7% | 38.6% |
| Sector (XLK) | 32.6% | 49.9% |
Fundamental Drivers
The 54.2% change in NTCT stock from 8/31/2025 to 9/15/2026 was primarily driven by a 57.2% change in the company's Net Income Margin (%).| (LTM values as of) | 8312025 | 9152026 | Change |
|---|---|---|---|
| Stock Price ($) | 24.89 | 38.37 | 54.2% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 835 | 883 | 5.8% |
| Net Income Margin (%) | 8.7% | 13.7% | 57.2% |
| P/E Multiple | 24.5 | 22.8 | -7.2% |
| Shares Outstanding (Mil) | 72 | 72 | -0.1% |
| Cumulative Contribution | 54.2% |
Market Drivers
8/31/2025 to 9/15/2026| Return | Correlation | |
|---|---|---|
| NTCT | 54.2% | |
| Market (SPY) | 18.4% | 39.9% |
| Sector (XLK) | 40.6% | 46.3% |
Fundamental Drivers
The 34.0% change in NTCT stock from 8/31/2023 to 9/15/2026 was primarily driven by a 100.8% change in the company's Net Income Margin (%).| (LTM values as of) | 8312023 | 9152026 | Change |
|---|---|---|---|
| Stock Price ($) | 28.63 | 38.37 | 34.0% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 917 | 883 | -3.7% |
| Net Income Margin (%) | 6.8% | 13.7% | 100.8% |
| P/E Multiple | 32.7 | 22.8 | -30.4% |
| Shares Outstanding (Mil) | 72 | 72 | -0.4% |
| Cumulative Contribution | 34.0% |
Market Drivers
8/31/2023 to 9/15/2026| Return | Correlation | |
|---|---|---|
| NTCT | 34.0% | |
| Market (SPY) | 74.1% | 42.7% |
| Sector (XLK) | 113.1% | 40.9% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| NTCT Return | 21% | -2% | -32% | -1% | 25% | 38% | 36% |
| Peers Return | 40% | -38% | 28% | 10% | 36% | 59% | 161% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 11% | 103% |
Monthly Win Rates [3] | |||||||
| NTCT Win Rate | 50% | 42% | 42% | 58% | 67% | 67% | |
| Peers Win Rate | 62% | 35% | 57% | 55% | 58% | 58% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 44% | |
Max Drawdowns [4] | |||||||
| NTCT Max Drawdown | -18% | -21% | -45% | -26% | -23% | -18% | |
| Peers Max Drawdown | -22% | -47% | -31% | -30% | -35% | -27% | |
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: KEYS, VIAV, FFIV, AKAM, NET. See NTCT Returns vs. Peers.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 9/15/2026 (YTD)
How Low Can It Go
| Event | NTCT | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -20.5% | -18.8% |
| % Gain to Breakeven | 25.7% | 23.1% |
| Time to Breakeven | 77 days | 79 days |
| Summer-Fall 2023 Five Percent Yield Shock | ||
| % Loss | -32.7% | -9.5% |
| % Gain to Breakeven | 48.6% | 10.5% |
| Time to Breakeven | 820 days | 24 days |
| 2023 SVB Regional Banking Crisis | ||
| % Loss | -14.2% | -6.7% |
| % Gain to Breakeven | 16.6% | 7.1% |
| Time to Breakeven | 15 days | 31 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -12.1% | -24.5% |
| % Gain to Breakeven | 13.7% | 32.4% |
| Time to Breakeven | 84 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -30.8% | -33.7% |
| % Gain to Breakeven | 44.4% | 50.9% |
| Time to Breakeven | 300 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -10.3% | -19.2% |
| % Gain to Breakeven | 11.5% | 23.8% |
| Time to Breakeven | 12 days | 105 days |
In The Past
NetScout Systems's stock fell -20.5% during the 2025 US Tariff Shock. Such a loss loss requires a 25.7% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
| Event | NTCT | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -20.5% | -18.8% |
| % Gain to Breakeven | 25.7% | 23.1% |
| Time to Breakeven | 77 days | 79 days |
| Summer-Fall 2023 Five Percent Yield Shock | ||
| % Loss | -32.7% | -9.5% |
| % Gain to Breakeven | 48.6% | 10.5% |
| Time to Breakeven | 820 days | 24 days |
| 2020 COVID-19 Crash | ||
| % Loss | -30.8% | -33.7% |
| % Gain to Breakeven | 44.4% | 50.9% |
| Time to Breakeven | 300 days | 140 days |
| 2015-2016 China Devaluation / Global Growth Scare | ||
| % Loss | -53.6% | -12.2% |
| % Gain to Breakeven | 115.6% | 13.9% |
| Time to Breakeven | 3760 days | 62 days |
| 2011 US Debt Ceiling Crisis & European Contagion | ||
| % Loss | -30.2% | -17.9% |
| % Gain to Breakeven | 43.3% | 21.8% |
| Time to Breakeven | 17 days | 123 days |
| 2008-2009 Global Financial Crisis | ||
| % Loss | -51.6% | -53.4% |
| % Gain to Breakeven | 106.6% | 114.4% |
| Time to Breakeven | 48 days | 1085 days |
In The Past
NetScout Systems's stock fell -20.5% during the 2025 US Tariff Shock. Such a loss loss requires a 25.7% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
About NetScout Systems (NTCT)
NetScout Systems, Inc. (NTCT) is a technology company specializing in service assurance and cybersecurity solutions. The company's core mission is to safeguard digital business services from disruptions across various sectors globally, including the United States, Europe, and Asia. Through its comprehensive suite of products, NetScout helps organizations maintain the performance, availability, and security of their critical network infrastructures and applications.
The company offers a robust portfolio of solutions primarily categorized into two areas. For service assurance, NetScout provides the nGeniusONE management software, which enables customers to proactively identify and resolve network and service delivery issues, as well as optimize capacity. Other key products in this domain include nGeniusPULSE for active performance testing, nGenius Business Analytics for traffic analysis, and various probes, packet flow systems, and test access points to facilitate deep network visibility and troubleshooting.
In cybersecurity, NetScout operates under its Arbor brand, delivering solutions such as Arbor Sightline, Arbor Threat Mitigation System, and Arbor Edge Defense to protect against distributed denial of service (DDoS) attacks. It also offers Arbor Cloud for cloud-based protection and Omnis Cyber Investigator for advanced threat detection. NetScout serves a diverse customer base, including large enterprises in industries like financial services, healthcare, and retail, as well as mobile and wireline operators, internet service providers, cloud providers, and governmental agencies.
AI Analysis | Feedback
Here are 1-3 brief analogies for NetScout Systems (NTCT):
- Imagine a blend of Datadog or Splunk, but specialized in deep network performance monitoring, analytics, and service assurance for large organizations.
- Think of it as Cloudflare or Akamai, but focused on internal network traffic analysis and robust cybersecurity, particularly DDoS protection, for enterprises and service providers.
- It's like combining the network performance visibility of Datadog with the network-level DDoS protection of Cloudflare, all for critical digital infrastructures.
AI Analysis | Feedback
- nGeniusONE Software: Management software for predicting, preempting, and resolving network and service delivery problems.
- Specialized Platforms and Analytic Modules: Tools for analyzing and troubleshooting traffic in radio access and Wi-Fi networks.
- nGeniusPULSE: An active testing tool for identifying infrastructure performance issues and determining application availability.
- nGenius Business Analytics: A solution enabling service providers to analyze their network traffic.
- ISNG: An advanced passive network probe for detailed network analysis.
- Packet Flow Systems: Systems that deliver targeted network traffic access to monitoring and security tools.
- Test Access Points (TAPs): Hardware devices enabling non-disruptive access to network traffic for analysis.
- Arbor Cybersecurity Solutions: A brand of solutions (e.g., Sightline, Threat Mitigation System, Edge Defense, Cloud) designed to protect networks from distributed denial of service (DDoS) attacks.
- Omnis Cyber Investigator: An advanced threat detection solution.
AI Analysis | Feedback
NetScout Systems (NTCT) primarily sells its service assurance and cybersecurity solutions to other companies and governmental agencies, rather than to individuals. The provided background information describes its major customers by segment or industry, but does not list specific company names or their symbols.
NetScout Systems serves the following major customer segments:
- Enterprise customers across various industries, including financial services, technology, manufacturing, healthcare, utilities, education, transportation, and retail.
- Communication service providers, such as mobile operators, wireline operators, cable operators, Internet service providers, and cloud providers.
- Governmental agencies.
AI Analysis | Feedback
AI Analysis | Feedback
Anil Singhal
Founder, President, Chief Executive Officer, and Chairman of the Board
Anil Singhal co-founded NETSCOUT in June 1984, initially as Frontier Software Development, Inc., and has served as its Chief Executive Officer and a director since the company's inception. He was appointed Chairman of the Board in January 2007. Under his leadership, NETSCOUT completed its initial public offering in 1999 and acquired Danaher's Communications Business in 2015 for $2.3 billion. Mr. Singhal holds a BSEE from BITS, Pilani, India, and an MS in Computer Science from the University of Illinois, Urbana-Champaign.
Anthony Piazza
Executive Vice President and Chief Financial Officer
Anthony Piazza has served as NETSCOUT's Chief Financial Officer and Treasurer since June 2025. He joined NETSCOUT in 2015 as Vice President of Corporate Finance, rising to Senior Vice President of Corporate Finance in 2022, and Deputy Chief Financial Officer in May 2024 as part of the company's succession planning. Before joining NETSCOUT, Mr. Piazza worked at Iron Mountain from 1997 to 2014, where he advanced to SVP of Enterprise Finance. His prior experience also includes roles as SVP of Global Real Estate, VP of Real Estate Finance & Operations, Assistant Treasurer, and Acquisition & SEC Reporting Accountant at Iron Mountain. He was a senior auditor at Grant Thornton from 1993 to 1997. Mr. Piazza holds a B.S. in accountancy and an M.B.A. from Bentley University, and he is a certified public accountant.
Sanjay Munshi
Chief Operating Officer
Sanjay Munshi has served as NETSCOUT's Chief Operating Officer since June 2025. He joined NETSCOUT in 2017 as Vice President, Product Management, became Senior Vice President of Products in 2022, and was named Deputy COO in April 2024 as part of the company's succession planning. Before his tenure at NETSCOUT, Mr. Munshi was Senior Director, Product Management and Marketing at Brocade Communications Systems from 2010 to 2017. He has also held senior management positions at Extreme Networks, Nortel, and Bay Networks. Mr. Munshi earned an MS in computer engineering from San Jose State University.
Michael Szabados
Vice Chairman
Michael Szabados currently serves as a Senior Advisor for NETSCOUT and previously held the position of Chief Operating Officer from April 2007 to May 2025. During his time as COO, NETSCOUT nearly tripled in size, including the $2.3 billion acquisition of the Danaher Communications Business in 2015. Before joining NETSCOUT in 1997, Mr. Szabados held senior leadership roles with companies such as UB Networks, SynOptics/Bay Networks, and MIPS Corporation. He also had engineering and product management roles at Intel Corporation and Apple. Mr. Szabados holds a BSEE from UC Irvine and an MBA from Santa Clara University.
John W. Downing
Executive Vice President, Worldwide Sales Operations
John W. Downing is NETSCOUT's Executive Vice President, Worldwide Sales Operations, a role in which he has overseen the company's sales operations since 2007. He is responsible for directing the company's sales leadership across both service provider and enterprise markets.
AI Analysis | Feedback
Key Risks for NetScout Systems (NTCT)
NetScout Systems, Inc. faces several key risks inherent to its industry, primarily stemming from rapid technological evolution and intense market competition.
The most significant risk to NetScout Systems is the **rapid pace of technological change and the evolving threat landscape**. As a provider of service assurance and cybersecurity solutions, NetScout's products must continuously adapt to new network architectures (e.g., 5G, cloud-native, software-defined networking), increasing encryption, and the constant emergence of sophisticated cyber threats. Failure to innovate quickly and effectively, or to anticipate future technological shifts, could render their solutions less relevant or effective, impacting their competitive position and sales. For instance, the increasing prevalence of end-to-end encryption could challenge their ability to analyze network traffic comprehensively without advanced decryption capabilities or new visibility paradigms.
Secondly, NetScout operates in a highly **competitive market**. The cybersecurity and network performance management sectors include a wide array of vendors, from large, diversified technology companies to specialized startups. This intense competition can lead to pricing pressure, reduced market share, and the need for significant ongoing investment in research and development to maintain a competitive edge. Competitors may introduce more advanced or cost-effective solutions that could erode NetScout's market position.
AI Analysis | Feedback
The rise of cloud-native observability platforms and practices
AI Analysis | Feedback
Addressable Markets for NetScout Systems
* DDoS Protection and Mitigation: NetScout's Arbor brand provides cybersecurity solutions, including DDoS protection. The global DDoS protection and mitigation security market was valued at approximately USD 4 billion in 2023. This market is projected to grow to approximately USD 13.8 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 15% between 2024 and 2032.. North America represented a significant portion of this market, accounting for 33% of the revenue share in 2023 and 39.6% in 2024. * Network Performance Monitoring (NPM): Products like nGeniusONE and nGeniusPULSE fall under this category. The global network performance monitoring market was valued at around USD 1.625.5 million in 2024 and is forecast to reach approximately USD 5.632.1 million by 2034, growing at a CAGR of 13.2% from 2024 to 2034. Another estimate puts the global NPM market size at US$ 2,067.3 million in 2025, with a projection to reach US$ 4,831.9 million by 2032 at a CAGR of 13.4%. North America is a dominant region in the NPM market, expected to represent 27.5% of the global market in 2024. The U.S. market specifically is estimated at US$ 322.7 million in 2024 and is projected to reach US$ 1,189.0 million by 2034, with a CAGR of 13.9%. * Network Analytics: Solutions such as nGenius Business Analytics and the analytical capabilities of nGeniusONE and ISNG are part of the network analytics market. The global network analytics market size was estimated at USD 3.26 billion in 2022 and is projected to grow at a CAGR of 19.0% from 2023 to 2030, reaching USD 13.06 billion by 2030. Another report indicates the market will grow from USD 4.41 billion in 2025 to USD 12.05 billion by 2031, at an 18.24% CAGR. North America held the largest market share of 33.62% in 2022 and 41.96% in 2025. * Network Visibility and Segmentation Solutions: This broader category aligns with NetScout's offerings like nGeniusONE, ISNG, packet flow systems, and test access points (TAPs) that provide insights into network traffic. The global Network Visibility and Segmentation Solutions market size was US$ 99,810 million in 2025 and is forecast to reach US$ 137,940 million by 2032, with a CAGR of 4.8% during the forecast period 2026-2032. * Network Packet Broker (NPB) Market: NetScout's packet flow systems directly address this market. The global Network Packet Broker market size was valued at USD 934.25 million in 2024 and is poised to grow to USD 1836.67 million by 2033, at a CAGR of 7.8% during the forecast period (2026–2033). North America holds the largest share of this market.AI Analysis | Feedback
NetScout Systems (NTCT) is expected to drive future revenue growth over the next 2-3 years through several strategic initiatives and market trends:
- Growth in AI-powered Cybersecurity Solutions: NetScout is focusing on continuous innovation in AI/ML-powered cybersecurity solutions, with new product launches such as the Omnis AI Sensor and AI Streamer. This strategic emphasis on advanced cybersecurity offerings, including the Omnis Cyber Intelligence platform, is designed to meet increasing demand and has already shown significant growth in cybersecurity revenue.
- Expansion in the Enterprise Sector: The company is undergoing a strategic pivot towards enterprise-driven security and observability solutions. This focus on enterprise customers is demonstrating positive results, with cybersecurity revenue from this vertical seeing an 18% year-over-year surge in Q1 FY2026. This shift is particularly important as revenue from the service provider sector has experienced declines.
- Continued Demand for Service Assurance Offerings: Alongside cybersecurity, NetScout continues to see solid growth and sustained demand for its core service assurance offerings. These solutions, which help customers predict, preempt, and resolve network and service delivery problems, remain a crucial component of the company's business model.
- Product Innovation in Network Observability: NetScout is driving product innovation in network observability, including advancements in remote site observability and next-generation Wi-Fi technologies. New products like the nGenius Edge Sensor 795 are expected to contribute to revenue as the company expands its capabilities to address evolving network infrastructures.
- Leveraging its AI-Ready Data Platform: A foundational driver for NetScout is its commitment to leveraging its AI-ready data platform. This platform is designed to help customers address the complex demands of artificial intelligence, performance, availability, and security in the digital landscape, underpinning the development and adoption of its advanced solutions.
AI Analysis | Feedback
Share Repurchases
- NetScout Systems repurchased approximately 1.4 million shares of its common stock for an aggregate of approximately $25.3 million through its share repurchase program during fiscal year 2025.
- The company concluded its May 2022 share repurchase plan in early February 2026, having bought back 3,478,951 shares for US$73.48 million.
- During the second quarter of fiscal year 2026, NetScout repurchased approximately 741,000 shares of common stock for approximately $16.6 million.
Peer Outperformance in Communications Equipment
| Industry | Names | 1Y med | 3Y med | 5Y med | Top 3 by 5Y |
|---|---|---|---|---|---|
| Electronic Manufacturing Services | 9 | 49.0% | 180.7% | 251.4% | TTMI 737% · FLEX 681% · SANM 381% |
| Technology Distributors | 9 | 31.4% | 67.3% | 84.6% | CLMB 362% · AVT 176% · SNX 135% |
| Semiconductor Materials & Equipment | 27 | 101.9% | 74.0% | 84.2% | AXTI 667% · AEHR 622% · KLAC 374% |
| Communications Equipment ← | 36 | 14.8% | 78.1% | 66.7% | AAOI 1177% · FEIM 1005% · LITE 870% |
| Electronic Components | 26 | 30.2% | 56.0% | 58.9% | CLS 3575% · BELFA 1238% · COHR 338% |
| Semiconductors | 55 | 19.7% | 23.1% | 27.9% | POET 1670% · MU 1175% · NVDA 858% |
| Technology Hardware, Storage & Peripherals | 21 | 31.4% | 48.9% | 23.1% | DELL 1071% · STX 956% · SMCI 878% |
| Internet Services & Infrastructure | 6 | 13.6% | 42.9% | 17.2% | GDDY 40% · DOCN 36% · VRSN 35% |
| Electronic Equipment & Instruments | 27 | -16.5% | 7.2% | -10.3% | PI 208% · OSIS 118% · ACFN 101% |
| IT Consulting & Other Services | 28 | -20.1% | -15.1% | -26.6% | CHRN 469900% · APLD 927% · TSSI 642% |
| Application Software | 122 | -26.0% | -16.3% | -45.3% | VIDA 153233% · INLX 4861% · PLTR 503% |
| Systems Software | 68 | -15.5% | 6.6% | -60.3% | QNC 493% · PANW 364% · ZETA 352% |
Latest Trefis Analyses
| Title | |
|---|---|
| ARTICLES |
Research & Analysis
Invest in Strategies
Wealth Management
Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 209.38 |
| Mkt Cap | 19.8 |
| Rev LTM | 2,911 |
| Op Inc LTM | 323 |
| FCF LTM | 472 |
| FCF 3Y Avg | 471 |
| CFO LTM | 841 |
| CFO 3Y Avg | 698 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 17.5% |
| Rev Chg 3Y Avg | 6.2% |
| Rev Chg Q | 24.3% |
| QoQ Delta Rev Chg LTM | 5.3% |
| Op Inc Chg LTM | 24.2% |
| Op Inc Chg 3Y Avg | 12.4% |
| Op Mgn LTM | 13.4% |
| Op Mgn 3Y Avg | 12.8% |
| QoQ Delta Op Mgn LTM | 1.6% |
| CFO/Rev LTM | 28.0% |
| CFO/Rev 3Y Avg | 25.2% |
| FCF/Rev LTM | 18.4% |
| FCF/Rev 3Y Avg | 20.1% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 19.8 |
| P/S | 6.4 |
| P/Op Inc | 29.6 |
| P/EBIT | 29.1 |
| P/E | 28.2 |
| P/CFO | 28.3 |
| Total Yield | 2.5% |
| Dividend Yield | 0.0% |
| FCF Yield 3Y Avg | 4.5% |
| D/E | 0.0 |
| Net D/E | -0.0 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | -7.9% |
| 3M Rtn | -8.0% |
| 6M Rtn | 17.1% |
| 12M Rtn | 47.9% |
| 3Y Rtn | 153.9% |
| 1M Excs Rtn | -5.3% |
| 3M Excs Rtn | -9.5% |
| 6M Excs Rtn | 5.1% |
| 12M Excs Rtn | 35.2% |
| 3Y Excs Rtn | 82.4% |
Comparison Analyses
Price Behavior
| Market Price | $38.37 | |
| Market Cap ($ Bil) | 2.8 | |
| First Trading Date | 08/12/1999 | |
| Distance from 52W High | -14.4% | |
| 50 Days | 200 Days | |
| DMA Price | $39.42 | $34.29 |
| DMA Trend | up | down |
| Distance from DMA | -2.7% | 11.9% |
| 3M | 1YR | |
| Volatility | 31.0% | 31.6% |
| Downside Capture | 145.05 | 96.40 |
| Upside Capture | 107.88 | 128.69 |
| Correlation (SPY) | 45.6% | 40.2% |
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 1.31 | 1.41 | 1.15 | 0.95 | 1.00 | 0.97 |
| Up Beta | 1.01 | 1.73 | 1.20 | 0.51 | 0.86 | 0.95 |
| Down Beta | -0.16 | 0.18 | 0.48 | 0.42 | 0.64 | 0.82 |
| Up Capture | 97% | 103% | 121% | 162% | 159% | 99% |
| Bmk +ve Days | 10 | 21 | 32 | 68 | 138 | 427 |
| Stock +ve Days | 9 | 20 | 32 | 69 | 134 | 371 |
| Down Capture | 281% | 218% | 152% | 110% | 103% | 103% |
| Bmk -ve Days | 11 | 21 | 32 | 59 | 113 | 324 |
| Stock -ve Days | 12 | 22 | 32 | 58 | 116 | 372 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with NTCT | |
|---|---|---|---|---|
| NTCT | 53.1% | 31.6% | 1.37 | - |
| Sector ETF (XLK) | 36.4% | 26.3% | 1.14 | 46.7% |
| Equity (SPY) | 16.3% | 12.8% | 0.90 | 39.6% |
| Gold (GLD) | 17.6% | 29.3% | 0.55 | 5.7% |
| Commodities (DBC) | 48.6% | 20.6% | 1.82 | -8.7% |
| Real Estate (VNQ) | 5.3% | 13.5% | 0.13 | 4.2% |
| Bitcoin (BTCUSD) | -33.1% | 43.8% | -0.79 | 23.6% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with NTCT | |
|---|---|---|---|---|
| NTCT | 8.5% | 33.3% | 0.30 | - |
| Sector ETF (XLK) | 19.1% | 25.9% | 0.66 | 42.3% |
| Equity (SPY) | 12.4% | 17.2% | 0.55 | 44.0% |
| Gold (GLD) | 18.7% | 18.8% | 0.80 | 3.9% |
| Commodities (DBC) | 11.7% | 19.5% | 0.47 | 9.9% |
| Real Estate (VNQ) | 0.8% | 18.9% | -0.06 | 32.3% |
| Bitcoin (BTCUSD) | 10.7% | 52.5% | 0.38 | 21.0% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with NTCT | |
|---|---|---|---|---|
| NTCT | 2.8% | 33.9% | 0.17 | - |
| Sector ETF (XLK) | 24.0% | 25.0% | 0.87 | 47.4% |
| Equity (SPY) | 15.1% | 18.0% | 0.71 | 51.5% |
| Gold (GLD) | 12.0% | 16.4% | 0.60 | 5.0% |
| Commodities (DBC) | 8.7% | 18.1% | 0.39 | 18.2% |
| Real Estate (VNQ) | 4.6% | 20.7% | 0.18 | 39.8% |
| Bitcoin (BTCUSD) | 63.4% | 66.2% | 1.03 | 13.6% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Returns Analyses
Earnings Returns History
Updated 9/9/2026| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 8/6/2026 | -2.2% | -3.7% | -8.6% |
| 5/7/2026 | 7.8% | 10.9% | 14.3% |
| 2/5/2026 | -4.8% | -0.9% | 4.9% |
| 11/6/2025 | 7.1% | 3.3% | -1.2% |
| 8/7/2025 | -2.0% | 6.7% | 14.5% |
| 5/8/2025 | 1.7% | 6.8% | 9.9% |
| 1/30/2025 | 12.1% | 10.4% | 0.6% |
| 10/24/2024 | -2.1% | 1.7% | 3.2% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 12 | 11 | 13 |
| # Negative | 10 | 11 | 9 |
| Median Positive | 6.5% | 6.7% | 9.9% |
| Median Negative | -2.1% | -2.9% | -6.7% |
| Max Positive | 13.9% | 12.0% | 20.2% |
| Max Negative | -4.8% | -6.7% | -11.5% |
| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 8/6/2026 | -2.2% | -3.7% | -8.6% |
| 5/7/2026 | 7.8% | 10.9% | 14.3% |
| 2/5/2026 | -4.8% | -0.9% | 4.9% |
| 11/6/2025 | 7.1% | 3.3% | -1.2% |
| 8/7/2025 | -2.0% | 6.7% | 14.5% |
| 5/8/2025 | 1.7% | 6.8% | 9.9% |
| 1/30/2025 | 12.1% | 10.4% | 0.6% |
| 10/24/2024 | -2.1% | 1.7% | 3.2% |
| 1/25/2024 | 6.0% | -0.8% | 0.0% |
| 11/2/2023 | -0.1% | -5.1% | -5.7% |
| 7/27/2023 | -4.1% | -4.9% | -4.7% |
| 5/4/2023 | 8.3% | 12.0% | 20.2% |
| 1/26/2023 | 13.9% | 2.1% | -9.5% |
| 10/27/2022 | -2.2% | -1.4% | 6.2% |
| 8/4/2022 | -2.3% | -3.9% | -11.5% |
| 5/5/2022 | -0.2% | 6.7% | 13.7% |
| 1/27/2022 | 7.0% | 6.2% | 6.9% |
| 11/4/2021 | 0.2% | -1.8% | -10.3% |
| 7/29/2021 | 0.3% | -6.7% | -4.9% |
| 5/6/2021 | 0.8% | 0.4% | 15.6% |
| 1/28/2021 | -0.3% | -1.6% | -6.7% |
| 10/29/2020 | 0.8% | -2.9% | 13.7% |
| SUMMARY STATS | |||
| # Positive | 12 | 11 | 13 |
| # Negative | 10 | 11 | 9 |
| Median Positive | 6.5% | 6.7% | 9.9% |
| Median Negative | -2.1% | -2.9% | -6.7% |
| Max Positive | 13.9% | 12.0% | 20.2% |
| Max Negative | -4.8% | -6.7% | -11.5% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 06/30/2026 | 08/06/2026 | 10-Q |
| 03/31/2026 | 05/14/2026 | 10-K |
| 12/31/2025 | 02/05/2026 | 10-Q |
| 09/30/2025 | 11/06/2025 | 10-Q |
| 06/30/2025 | 08/07/2025 | 10-Q |
| 03/31/2025 | 05/15/2025 | 10-K |
| 12/31/2024 | 02/06/2025 | 10-Q |
| 09/30/2024 | 11/01/2024 | 10-Q |
| 06/30/2024 | 08/05/2024 | 10-Q |
| 03/31/2024 | 05/16/2024 | 10-K |
| 12/31/2023 | 02/08/2024 | 10-Q |
| 09/30/2023 | 11/02/2023 | 10-Q |
| 06/30/2023 | 08/03/2023 | 10-Q |
| 03/31/2023 | 05/16/2023 | 10-K |
| 12/31/2022 | 02/02/2023 | 10-Q |
| 09/30/2022 | 11/03/2022 | 10-Q |
| Report Date | Filing Date | Filing |
|---|---|---|
| 06/30/2026 | 08/06/2026 | 10-Q |
| 03/31/2026 | 05/14/2026 | 10-K |
| 12/31/2025 | 02/05/2026 | 10-Q |
| 09/30/2025 | 11/06/2025 | 10-Q |
| 06/30/2025 | 08/07/2025 | 10-Q |
| 03/31/2025 | 05/15/2025 | 10-K |
| 12/31/2024 | 02/06/2025 | 10-Q |
| 09/30/2024 | 11/01/2024 | 10-Q |
| 06/30/2024 | 08/05/2024 | 10-Q |
| 03/31/2024 | 05/16/2024 | 10-K |
| 12/31/2023 | 02/08/2024 | 10-Q |
| 09/30/2023 | 11/02/2023 | 10-Q |
| 06/30/2023 | 08/03/2023 | 10-Q |
| 03/31/2023 | 05/16/2023 | 10-K |
| 12/31/2022 | 02/02/2023 | 10-Q |
| 09/30/2022 | 11/03/2022 | 10-Q |
| 06/30/2022 | 08/04/2022 | 10-Q |
| 03/31/2022 | 05/19/2022 | 10-K |
| 12/31/2021 | 02/03/2022 | 10-Q |
| 09/30/2021 | 11/04/2021 | 10-Q |
| 06/30/2021 | 08/05/2021 | 10-Q |
| 03/31/2021 | 05/20/2021 | 10-K |
| 12/31/2020 | 02/04/2021 | 10-Q |
| 09/30/2020 | 11/03/2020 | 10-Q |
| 06/30/2020 | 08/06/2020 | 10-Q |
| 03/31/2020 | 05/20/2020 | 10-K |
| 12/31/2019 | 02/06/2020 | 10-Q |
| 09/30/2019 | 10/31/2019 | 10-Q |
Recent Forward Guidance
Updated 8/7/2026Latest: Q1 2027 Earnings Reported 8/6/2026
| Forward Guidance | Guidance Change | |||||||
|---|---|---|---|---|---|---|---|---|
| Metric | Source | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2027 Revenue | Reported | 885.00 Mil | 900.00 Mil | 915.00 Mil | 0 | Affirmed | Guidance: 900.00 Mil for 2027 | |
| 2027 GAAP Net Income Per Diluted Share | Reported | 1.55 | 1.62 | 1.7 | 0 | Affirmed | Guidance: 1.62 for 2027 | |
| 2027 Non-GAAP Net Income Per Diluted Share | Reported | 2.65 | 2.73 | 2.8 | 0 | Affirmed | Guidance: 2.73 for 2027 | |
Prior: Q4 2026 Earnings Reported 5/7/2026
| Forward Guidance | Guidance Change | |||||||
|---|---|---|---|---|---|---|---|---|
| Metric | Source | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2027 Revenue | Reported | 885.00 Mil | 900.00 Mil | 915.00 Mil | 5.6% | Higher New | Actual: 852.50 Mil for 2026 | |
| 2027 GAAP EPS | Reported | 1.55 | 1.62 | 1.7 | 36.6% | Higher New | Actual: 1.19 for 2026 | |
| 2027 Non-GAAP EPS | Reported | 2.65 | 2.73 | 2.8 | 13.1% | Higher New | Actual: 2.41 for 2026 | |
Q3 2026 Earnings Reported 2/5/2026
| Forward Guidance | Guidance Change | |||||||
|---|---|---|---|---|---|---|---|---|
| Metric | Source | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 Revenue | Reported | 835.00 Mil | 852.50 Mil | 870.00 Mil | 0.3% | Raised | Guidance: 850.00 Mil for 2026 | |
| 2026 GAAP net income per share (diluted) | Reported | 1.15 | 1.19 | 1.23 | 0.8% | Raised | Guidance: 1.18 for 2026 | |
| 2026 Non-GAAP net income per share (diluted) | Reported | 2.37 | 2.41 | 2.45 | 0.4% | Raised | Guidance: 2.4 for 2026 | |
Q2 2026 Earnings Reported 11/6/2025
| Forward Guidance | Guidance Change | |||||||
|---|---|---|---|---|---|---|---|---|
| Metric | Source | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 Revenue | Reported | 830.00 Mil | 850.00 Mil | 870.00 Mil | 0.6% | Raised | Guidance: 845.00 Mil for 2026 | |
| 2026 GAAP EPS | Reported | 1.13 | 1.18 | 1.23 | 3.1% | Raised | Guidance: 1.15 for 2026 | |
| 2026 Non-GAAP EPS | Reported | 2.35 | 2.4 | 2.45 | 3.2% | Raised | Guidance: 2.33 for 2026 | |
Insider Activity
Updated 9/14/2026| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Perretta, Christopher | Direct | Sell | 9142026 | 38.00 | 7,000 | 266,000 | 1,552,908 | Form | |
| 2 | Szabados, Michael | Direct | Sell | 8262026 | 37.70 | 4,000 | 150,800 | 1,570,356 | Form | |
| 3 | Munshi, Sanjay | Chief Operating Officer | Direct | Sell | 8192026 | 39.27 | 2,269 | 89,104 | 264,248 | Form |
| 4 | Downing, John | EVP, Worldwide Sales Ops | Direct | Sell | 8132026 | 38.41 | 8,000 | 307,280 | 4,909,144 | Form |
| 5 | Downing, John | EVP, World-Wide Sales | Direct | Sell | 6092026 | 40.29 | 8,000 | 322,320 | 5,202,285 | Form |
| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Perretta, Christopher | Direct | Sell | 9142026 | 38.00 | 7,000 | 266,000 | 1,552,908 | Form | |
| 2 | Szabados, Michael | Direct | Sell | 8262026 | 37.70 | 4,000 | 150,800 | 1,570,356 | Form | |
| 3 | Munshi, Sanjay | Chief Operating Officer | Direct | Sell | 8192026 | 39.27 | 2,269 | 89,104 | 264,248 | Form |
| 4 | Downing, John | EVP, Worldwide Sales Ops | Direct | Sell | 8132026 | 38.41 | 8,000 | 307,280 | 4,909,144 | Form |
| 5 | Downing, John | EVP, World-Wide Sales | Direct | Sell | 6092026 | 40.29 | 8,000 | 322,320 | 5,202,285 | Form |
| 6 | Szabados, Michael | Direct | Sell | 5182026 | 38.40 | 4,000 | 153,600 | 1,247,770 | Form | |
| 7 | Munshi, Sanjay | Chief Operating Officer | Direct | Sell | 5182026 | 38.40 | 1,985 | 76,224 | 192,192 | Form |
| 8 | Grasso, Alfred | Direct | Sell | 5142026 | 40.67 | 5,000 | 203,350 | 1,423,450 | Form | |
| 9 | Downing, John | EVP, World-Wide Sales | Direct | Sell | 2232026 | 30.00 | 3,000 | 90,000 | 3,884,820 | Form |
| 10 | Szabados, Michael | Direct | Sell | 2202026 | 29.18 | 4,000 | 116,720 | 1,064,895 | Form | |
| 11 | Munshi, Sanjay | Chief Operating Officer | Direct | Sell | 2202026 | 29.18 | 2,000 | 58,360 | 124,132 | Form |
| 12 | Downing, John | EVP, World-Wide Sales | Direct | Sell | 2202026 | 29.18 | 3,000 | 87,540 | 3,866,175 | Form |
| 13 | Perretta, Christopher | Direct | Sell | 12152025 | 28.01 | 10,000 | 280,100 | 1,144,657 | Form | |
| 14 | Munshi, Sanjay | Chief Operating Officer | Direct | Sell | 12052025 | 27.23 | 2,000 | 54,460 | 170,296 | Form |
| 15 | Hadzima, Joseph G JR | Direct | Sell | 11212025 | 25.63 | 3,113 | 79,786 | 3,285,382 | Form | |
| 16 | Szabados, Michael | Direct | Sell | 11142025 | 28.35 | 4,000 | 113,400 | 1,148,005 | Form | |
| 17 | Downing, John | EVP, World-Wide Sales | Direct | Sell | 11072025 | 30.00 | 3,000 | 90,000 | 4,064,820 | Form |
| 18 | Downing, John | EVP, World-Wide Sales | Direct | Sell | 11032025 | 27.80 | 3,000 | 83,400 | 3,850,133 | Form |
NetScout Systems — Investor Video Playlist
Industry Resources
| Information Technology Resources |
| TechCrunch |
| Wired |
| CIO |
| MIT Technology Review |
| Gartner Insights |
| Ars Technica |
| Communications Equipment Resources |
| Light Reading |
| Fierce Network |
| Telecoms.com |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
Prefer one of these to Trefis? Tell us why.