NetScout | 10-K: FY2026 Revenue Beats Estimate at USD 859.48 M

Revenue: As of FY2026, the actual value is USD 859.48 M, beating the estimate of USD 855.42 M.

EPS: As of FY2026, the actual value is USD 1.3.

EBIT: As of FY2026, the actual value is USD 97.7 M.

Overall Financial Performance (Fiscal Year Ended March 31, 2026 vs. 2025)

• Total Revenue: NetScout Systems, Inc.’s total revenue increased by $36.8 million, or 4%, to $859.482 million in fiscal year 2026, compared to $822.679 million in fiscal year 2025.
• Gross Profit: Total gross profit increased by $38.550 million, or 6%, reaching $682.494 million in fiscal year 2026 from $643.944 million in fiscal year 2025. The total gross profit percentage increased by one percentage point to 79% in fiscal year 2026, up from 78% in fiscal year 2025.
• Net Income (Loss): Net income for fiscal year 2026 was $95.531 million, a significant improvement from a net loss of - $366.922 million in fiscal year 2025.
• Income (loss) from operations: Income from operations was $109.825 million in fiscal year 2026, compared to a loss from operations of - $367.602 million in fiscal year 2025.
• Income Tax Expense: Income tax expense was $22.977 million in fiscal year 2026, up from $1.128 million in fiscal year 2025.
• Interest and Other Income, Net: This increased by $6.875 million, or 380%, to $8.683 million in fiscal year 2026 from $1.808 million in fiscal year 2025.

Segment Revenue Analysis (Fiscal Year Ended March 31, 2026 vs. 2025)

• Product Revenue: Increased by $10.251 million, or 3%, to $370.145 million (43% of total revenue) in fiscal year 2026, from $359.894 million (44% of total revenue) in fiscal year 2025.
• Service Revenue: Increased by $26.552 million, or 6%, to $489.337 million (57% of total revenue) in fiscal year 2026, from $462.785 million (56% of total revenue) in fiscal year 2025.

Geographical Revenue (Fiscal Year Ended March 31, 2026 vs. 2025)

• United States: Revenue increased by $8.889 million, or 2%, to $474.359 million (55% of total revenue) in fiscal year 2026, from $465.470 million (57% of total revenue) in fiscal year 2025.
• International: Total international revenue increased by $27.914 million, or 8%, to $385.123 million (45% of total revenue) in fiscal year 2026, from $357.209 million (43% of total revenue) in fiscal year 2025.
  • Europe: Revenue increased by $2.051 million, or 1%, to $158.766 million (19% of total revenue) in fiscal year 2026, from $156.715 million (19% of total revenue) in fiscal year 2025.
  • Asia: Revenue decreased by - $0.549 million, or -1%, to $63.075 million (7% of total revenue) in fiscal year 2026, from $63.624 million (8% of total revenue) in fiscal year 2025.
  • Rest of the World: Revenue increased by $26.412 million, or 19%, to $163.282 million (19% of total revenue) in fiscal year 2026, from $136.870 million (16% of total revenue) in fiscal year 2025.

Product Line Revenue (Fiscal Year Ended March 31, 2026 vs. 2025)

• Service Assurance: Revenue increased by $14.137 million, or 3%, to $547.021 million (64% of total revenue) in fiscal year 2026, from $532.884 million (65% of total revenue) in fiscal year 2025.
• Cybersecurity: Revenue increased by $22.666 million, or 8%, to $312.461 million (36% of total revenue) in fiscal year 2026, from $289.795 million (35% of total revenue) in fiscal year 2025.

Customer Vertical Revenue (Fiscal Year Ended March 31, 2026 vs. 2025)

• Service Provider: Revenue increased by $11.542 million, or 3%, to $362.510 million (42% of total revenue) in fiscal year 2026, from $350.968 million (43% of total revenue) in fiscal year 2025.
• Enterprise: Revenue increased by $25.261 million, or 5%, to $496.972 million (58% of total revenue) in fiscal year 2026, from $471.711 million (57% of total revenue) in fiscal year 2025.

Operational Costs (Fiscal Year Ended March 31, 2026 vs. 2025)

• Cost of Product Revenue: Decreased by - $6.869 million, or -12%, to $50.594 million in fiscal year 2026, from $57.463 million in fiscal year 2025.
• Cost of Service Revenue: Increased by $5.122 million, or 4%, to $126.394 million in fiscal year 2026, from $121.272 million in fiscal year 2025.
• Research and Development Expenses: Increased by $6.597 million, or 4%, to $159.461 million in fiscal year 2026, from $152.864 million in fiscal year 2025.
• Sales and Marketing Expenses: Decreased by - $3.513 million, or -1%, to $264.538 million in fiscal year 2026, from $268.051 million in fiscal year 2025.
• General and Administrative Expenses: Increased by $6.461 million, or 7%, to $103.185 million in fiscal year 2026, from $96.724 million in fiscal year 2025.
• Amortization of Acquired Intangible Assets: Decreased by - $1.838 million, or -4%, to $44.602 million in fiscal year 2026, from $46.440 million in fiscal year 2025.
• Restructuring Charges: Decreased by - $19.617 million, or -96%, to $0.883 million in fiscal year 2026, from $20.500 million in fiscal year 2025.
• Goodwill Impairment: No goodwill impairment was recorded in fiscal year 2026, compared to - $426.967 million in fiscal year 2025.

Cash Flow (Fiscal Year Ended March 31, 2026 vs. 2025)

• Cash, Cash Equivalents, Marketable Securities and Investments: Totaled $705.145 million at March 31, 2026, an increase of $212.7 million from $492.477 million at March 31, 2025.
• Net Cash Provided by Operating Activities: Was $294.538 million in fiscal year 2026, an increase from $217.670 million in fiscal year 2025.
• Net Cash Used in Investing Activities: Increased by $85.8 million to - $92.830 million in fiscal year 2026, compared to - $6.996 million in fiscal year 2025.
• Net Cash Used in Financing Activities: Decreased by $65.3 million to - $76.691 million in fiscal year 2026, compared to - $142.011 million in fiscal year 2025.

Unique Metrics

• Total Combined Product Backlog: Was $50.8 million at March 31, 2026, compared to $33.1 million at March 31, 2025.
• Fulfillable Backlog: Included in the total backlog, fulfillable backlog was $45.8 million at March 31, 2026, up from $25.1 million at March 31, 2025.

Outlook / Guidance

NetScout Systems, Inc. remains optimistic despite macroeconomic dynamics and constrained customer spending in the service provider market. The company is focused on product innovation, sustaining annual revenue growth, and enhancing margins through disciplined cost management. NetScout Systems, Inc. expects sufficient liquidity for current obligations, capital spending, and working capital requirements for at least the next twelve months and the foreseeable future, combining net cash from operations with existing cash and borrowing availability.