NetScout Systems (NTCT): Evaluating Valuation After Strong Fiscal Q2 2026 Earnings Beat on EPS and Revenue

NetScout Systems (NTCT) just turned heads with second quarter fiscal 2026 earnings that topped Wall Street on both revenue and EPS, a clear signal that operations and investor confidence are moving in the right direction. See our latest analysis for NetScout Systems. The strong quarterly beat comes after a steady recovery, with a roughly 26 percent year to date share price return and 25 percent one year total shareholder return suggesting momentum is rebuilding despite weaker three year and five year total shareholder returns. If NetScout’s move has you rethinking your tech exposure, this could be a good moment to explore high growth tech and AI stocks for other potential opportunities riding similar digital infrastructure trends. With shares still trading below analyst targets and a deeper intrinsic discount suggesting more upside, the key question now is whether NetScout remains a mispriced value in digital infrastructure or if the market is already factoring in its next leg of growth. Most Popular Narrative Narrative: 12.6% Undervalued With NetScout Systems last closing at $27.18 against a narrative fair value of $31.09, the story frames today’s price as leaving meaningful upside on the table. AI driven innovation is expanding NetScout's addressable market, as highlighted by their Omnis AI Insights and AI powered DDoS protections; these enhance product differentiation and create upsell opportunities as enterprise customers invest in digital transformation and network observability, which could drive higher average contract values and increase long term margins. Read the complete narrative. Curious how modest revenue growth assumptions, shifting margins, and a richer future earnings multiple still add up to upside from here? The full narrative unpacks every step. Result: Fair Value of $31.09 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, persistent cloud migration and IT stack consolidation could erode demand for legacy offerings, while intensifying competition may cap margins and compress valuation multiples. Find out about the key risks to this NetScout Systems narrative. Build Your Own NetScout Systems Narrative If you see the story differently or want to stress test the assumptions yourself, you can build a complete view in just minutes. Do it your way. A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding NetScout Systems. Ready for more high conviction ideas? Do not stop with one opportunity. Use the Simply Wall Street Screener now to pinpoint new stocks that match your strategy before the market catches up. Capitalize on mispriced potential by reviewing these 908 undervalued stocks based on cash flows that could rerate quickly as cash flows compound and sentiment shifts. Strengthen your income stream by targeting these 13 dividend stocks with yields > 3% that may complement growth names like NetScout in a balanced portfolio. Get ahead of the next computing revolution by analyzing these 28 quantum computing stocks positioned to benefit as enterprise and government adoption accelerates. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.Mobile Infrastructure for Defense and DisasterThe next wave in robotics isn't humanoid. Its fully autonomous towers delivering 5G, ISR, and radar in under 30 minutes, anywhere.Get the investor briefing before the next round of contractsSponsored On Behalf of CiTech