Netscout Reaffirms Fiscal 2027 Outlook After Slowdown

The Tip Desk · November 6, 2026 · 3 min read

Second-quarter revenue was $222.2 million, up 1.4% from a year earlier, as the company kept its full-year revenue range of $885.0 million to $915.0 million.

Netscout Systems (NTCT), a provider of network observability, AIOps, carrier service assurance, cybersecurity, and DDoS attack protection, reported second-quarter fiscal 2027 revenue of $222.2 million, up 1.4% from a year earlier, as growth slowed after a stronger first quarter.

President and Chief Executive Officer Anil Singhal said results were consistent with the company’s expectations and that first-half performance kept Netscout on track for fiscal 2027. He said government-related orders that benefited the first quarter shaped the second-quarter comparison.

Product revenue decreased 5.1% to $89.9 million, or 40% of total revenue, after a 17.8% increase in the prior quarter. Service revenue increased 6.4% to $132.3 million, or 60% of total revenue.

GAAP income from operations was $37.6 million, or 16.9% of revenue, compared with $32.5 million, or 14.8%, a year earlier. Non-GAAP income from operations was $62.9 million, or 28.3% of revenue. Adjusted EBITDA was $66.5 million, or 29.9% of revenue. Singhal attributed the year-over-year operating-margin expansion to continued focus on cost discipline.

GAAP net income was $34.4 million, or $0.47 a share. Non-GAAP net income was $52.8 million, or $0.71 a share.

Total product backlog was $20.9 million as of September 30, 2026, including $15.4 million of fulfillable backlog, compared with $39.8 million and $27.7 million a year earlier.

During the quarter Netscout repurchased 2.0 million shares for approximately $77 million. Cash, cash equivalents, and short- and long-term marketable securities totaled $571.3 million as of September 30, 2026. The company had no debt outstanding under its $600 million revolving credit facility, which expires in October 2029.

For the six months ended September 30, 2026, total revenue increased 6.6% to $432.6 million. Product revenue increased 4.9% to $175.9 million, and service revenue increased 7.8% to $256.7 million. GAAP net income for the half was $56.2 million, or $0.76 a share. Non-GAAP net income was $91.3 million, or $1.23 a share. Adjusted EBITDA was $113.4 million, or 26.2% of revenue.

Netscout is reaffirming its fiscal 2027 outlook, unchanged from the prior quarter: revenue of $885.0 million to $915.0 million, implying 4.7% year-over-year growth at the midpoint; GAAP net income of $1.55 to $1.70 a share; and non-GAAP net income of $2.65 to $2.80 a share, implying 9.9% year-over-year growth at the midpoint.

Singhal said the company is continuing to execute on a strategy to drive revenue growth, expand margins, and generate solid free cash flow. At its October ENGAGE summit, attended by more than 400 customers and partners, Netscout showcased solutions that extend Scalable DPI-derived, AI-Ready Smart Data into AIOps and agentic workflows. The company said customers are in the early phases of their AI journey and that it views the opportunity as multi-year rather than a near-term cycle.

In September Netscout unveiled nGenius Copilot, an AI-powered conversational extension to nGeniusONE, and launched MCP connectivity for Omnis AI Insights. In August it enhanced Arbor Edge Defense and extended Adaptive DDoS Protection. In October it published its 17th DDoS Threat Intelligence Report covering the first half of 2026.