NetScout Systems Earnings Call Transcripts
Fiscal Year 2026
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Q3 revenue and earnings exceeded expectations, driven by order acceleration and strong demand in cybersecurity and service assurance. Fiscal 2026 guidance was raised, with robust cash flow and continued focus on AI and DDoS solutions.
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Q2 saw double-digit revenue and EPS growth, driven by strong cybersecurity and service assurance demand, with accelerated federal orders boosting results. Full-year guidance for both revenue and EPS was raised, and the company remains focused on AI innovation and disciplined cost management.
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Q1 fiscal 2026 saw 7% revenue growth and 21% EPS increase, led by strong cybersecurity and enterprise demand. Guidance for the year was reaffirmed, with continued margin expansion and robust cash flow. Key wins in government and financial sectors highlight momentum.
Fiscal Year 2025
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Q2 saw 15% revenue growth, with both service assurance and cybersecurity performing strongly. New AI-driven products and increased network investments are creating tailwinds, while adaptive DDoS and DPI-based solutions are expanding enterprise cybersecurity opportunities.
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Fiscal 2025 revenue was flat year-over-year at $823M, with cybersecurity up 7% and service assurance down 4%. FY26 guidance calls for revenue of $825M–$865M and EPS of $2.25–$2.40, with leadership transitions planned and continued focus on cost management.
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Q3 FY25 revenue and EPS surpassed expectations, driven by strong cybersecurity and service assurance growth. Early order timing boosted Q3, supporting confidence in full-year guidance. Cybersecurity and 5G remain key growth areas, with robust cash flow and active capital management.
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Q2 FY25 revenue and EPS met expectations, with normalized growth masked by prior year backlog and divestiture impacts. Cybersecurity showed growth, while service assurance and service provider verticals declined. FY25 guidance is reaffirmed, with cost savings from restructuring and new product launches supporting future performance.
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Q1 FY25 revenue was $174.6M, down 17% year-over-year due to prior year backlog, but EPS of $0.28 exceeded expectations, aided by cost controls and an unrealized investment gain. FY25 guidance is reiterated, with cost reductions and new product investments expected to support future growth.
Fiscal Year 2024
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Revenue guidance is reaffirmed, with growth driven by fixed wireless, cybersecurity, and AI initiatives. Adaptive DDoS, DPI, and AIOps are key innovation areas, while service provider spending and new product traction could drive upside.