NETSCOUT : Q4FY26 Results Conference Call Webcast & Slides

Published: 2026-05-07 08:37:17 ET NTCT

Published on 05/07/2026 at 08:37 am EDT

PERIOD ENDED March 31, 2026

Published May 7, 2026

01 Introduction

Scott Dressel, Vice President Corporate Finance

CEO Perspective

Anil Singhal, President & Chief Executive Officer (CEO)

CFO Financial Review

Tony Piazza, Executive Vice President & Chief Financial Officer (CFO)

04 Question & Answer Session

This presentation contains forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. Examples of forward-looking statements include statements regarding our future financial performance or position, liquidity, results of operations, business strategy, plans and objectives of management for future operations, and other statements that are not historical fact. You can identify forward-looking statements by their use of forward-looking words such as "may," "will," "anticipate," "expect," "believe," "estimate," "intend," "plan," "should," "seek," or other comparable terms. Investors are cautioned that such forward-looking statements in this presentation include, without limitation, statements regarding NETSCOUT's ability to leverage the strength of its AI-ready data platform to help customers advance their AI and digital transformation initiatives and to manage an increasingly complex digital environment; NETSCOUT's financial outlook and expectations; and NETSCOUT's strategic objectives, plans, commitments, aspirations and goals. Actual results could differ materially from those indicated in the forward-looking statements due to known and unknown risks, uncertainties, assumptions, and other factors, including macroeconomic factors and slowdowns or downturns in economic conditions generally and in the market for advanced networks, service assurance and cybersecurity solutions specifically; the volatile foreign exchange environment; the Company's relationships with strategic partners and resellers; dependence upon broad-based acceptance of the Company's network performance management solutions; the presence of competitors with greater financial resources than the Company has, and their strategic response to the Company's products; the Company's ability to retain key executives and employees; the Company's ability to realize the anticipated savings from restructuring actions and other expense management programs; potential lower than expected demand for the Company's products and services; the Company's ability to recognize the expected gain from its acquisition of the assets of DigiCert, Inc.'s DDoS protection business; and the timing and magnitude of stock buyback activity based on market conditions, corporate considerations, debt agreements, and regulatory requirements. The risks included above are not exhaustive. For a more detailed description of the risk factors associated with the Company, please refer to the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" sections of the Company's filings with the Securities and Exchange Commission, including but not limited to, our annual report on Form 10-K and quarterly reports on Form 10-Q. Any forward-looking information in this presentation is as of the date of this presentation, and NETSCOUT undertakes no obligation to update such information unless required by law. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. NETSCOUT's financial guidance is based on estimates and assumptions that are subject to significant uncertainties.

To supplement the financial measures presented in NETSCOUT's presentation in accordance with accounting principles generally accepted in the United States (GAAP), NETSCOUT also reports the following non-GAAP financial measures: non-GAAP gross profit, non-GAAP gross margin, non-GAAP income from operations, non-GAAP operating margin, non-GAAP net income, non-GAAP diluted net income per share, adjusted EBITDA, and free cash flow. Non-GAAP gross profit removes expenses related to the amortization of acquired intangible assets, share-based compensation expense, and acquisition-related depreciation expense from gross profit (GAAP). Non-GAAP gross margin is non-GAAP gross profit expressed as a percentage of revenue. Non-GAAP income from operations includes the aforementioned adjustments related to non-GAAP gross profit and also removes goodwill impairment charges, executive transition costs, and restructuring charges from income from operations (GAAP). Non-GAAP operating margin is non-GAAP income from operations expressed as a percentage of revenue. Non-GAAP net income includes the foregoing adjustments related to non-GAAP income from operations and also removes the income tax effects of such adjustments as well as any loss on extinguishment of debt from net income (GAAP). Non-GAAP diluted net income per share is non-GAAP net income divided by total outstanding shares on a diluted basis. Adjusted EBITDA includes the aforementioned adjustments related to non-GAAP net income and also removes interest and other expense, income taxes, and non-acquisition related depreciation from net income (GAAP). Free cash flow removes cash outlays for fixed and intangible assets, as well as capitalized software, from operating cash flow. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures included in the attached tables within this presentation.

These non-GAAP measures are not prepared in accordance with GAAP, should not be considered an alternative for measures prepared in accordance with GAAP (gross profit, income from operations, operating margin, net income, and diluted net income per share), and may have limitations because they do not reflect all of NETSCOUT's results of operations as determined in accordance with GAAP. These non-GAAP measures should only be used to evaluate NETSCOUT's results of operations in conjunction with the corresponding GAAP measures. The presentation of non-GAAP information is not meant to be considered superior to, in isolation from, or as a substitute for results prepared in accordance with GAAP. NETSCOUT believes these non-GAAP financial measures will enhance the reader's overall understanding of NETSCOUT's current financial performance and NETSCOUT's prospects for the future by providing a higher degree of transparency for certain financial measures and providing a level of disclosure that helps investors understand how the Company plans and measures its own business. NETSCOUT believes that providing these non-GAAP measures affords investors a view of NETSCOUT's operating results that may be more easily compared to peer companies and also enables investors to consider NETSCOUT's operating results on both a GAAP and non-GAAP basis during and following the integration period of NETSCOUT's acquisitions. Presenting the GAAP measures on their own, without the supplemental non-GAAP disclosures, might not be indicative of NETSCOUT's core operating results. Furthermore, NETSCOUT believes that the presentation of non-GAAP measures when shown in conjunction with the corresponding GAAP measures provides useful information to management and investors regarding present and future business trends relating to its financial condition and results of operations.

NETSCOUT management regularly uses supplemental non-GAAP financial measures internally to understand, manage and evaluate its business and to make operating decisions. These non-GAAP measures are among the primary factors that management uses in planning and forecasting.

Anil Singhal, President & Chief Executive Officer

(GAAP revenue, other metrics non-GAAP)

Total Revenue

(GAAP)

$203.0M

-1% Y/Y

$859.5M

+4.5% Y/Y

Gross Margin

(Non-GAAP)

79.7%

+0.5pts Y/Y

80.8%

+0.8pts Y/Y

Operating Margin

(Non-GAAP)

21.6%

-1.5pts Y/Y

25.4%

+1.7pts Y/Y

Diluted EPS

(Non-GAAP)

$0.52

Consistent Y/Y

$2.48

+11.7% Y/Y

Note: Revenue is a GAAP measure. All other amounts are non-GAAP financial measures. See the slide entitled "Non-GAAP Financial Metrics" near the beginning of this presentation for a

description of the non-GAAP financial measures and the appendix for a reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures.

Service Assurance

Cybersecurity

Product Line

Performance

Market Insights

Customer Wins

Delivered FY26 Objectives, Extending Strong Momentum

Clear FY27 Priorities

Innovation Profitable Growth Cash Generation Balanced Capital Allocation

Significant Growth

Opportunities

AI-ready Smart Data Observability Adaptive DDoS Protection

Helping Customers Advance AI and Digital Transformation Initiatives

Q4 and Full FY'26 Results

Tony Piazza, Executive Vice President & Chief Financial Officer

(GAAP revenue, other metrics non-GAAP)

$M (except EPS & % data)

Q4 FY'25

Q4 FY'26 Y/Y

Change

Revenue

$205.0

$203.0

(1.0%)

Product Revenue

$89.5

$80.7

(9.8%)

Service Revenue

$115.5

$122.3

5.9%

Gross Profit Margin

79.2%

79.7%

Operating Margin

23.1%

21.6%

Net Income

$38.0

$38.5

1.2%

Diluted Net Income per Share

$0.52

0.0%

Diluted Shares Outstanding

73.4

74.2

FY'25

FY'26 Y/Y

Change

$822.7

$859.5

4.5%

$359.9

$370.1

2.8%

$462.8

$489.3

5.7%

80.0%

80.8%

23.7%

25.4%

$160.4

$182.0

13.5%

$2.22

$2.48

11.7%

72.2

73.4

Note: Revenue is a GAAP measure. All other amounts are non-GAAP financial measures. See the slide entitled "Non-GAAP Financial Metrics" near the beginning of this presentation for a description of the non-GAAP financial measures and to the appendix for a reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures. Figures in charts and tables may not total due to rounding.

Revenue by Product Line

$28G.8 35%

$312.5

36%

Cyber

+7.8%

$532.G

65%

$547.0 64%

+2.6%

$822.7 $85G.5

FY'25 FY'26

Total

+4.5%

Revenue by Customer Vertical

+4.5%

$471.7

57%

$4G7.0

58%

ENT

+5.4%

$351.0

43%

$362.5

42%

+3.3%

$822.7 $85G.5

FY'25 FY'26

Total

Note: In $M except % data. Revenue is a GAAP measure. Figures in charts and tables may not total due to rounding.

57%

43%

1G%

16%

FY'25

FY'26

Y/Y

Change

Revenue

$822.7

$859.5

4.5%

United States

$465.5

$474.4

1.9%

International

$357.2

$385.1

7.8%

Europe

$156.7

$158.8

1.3%

Asia

$63.6

$63.1

(0.9%)

Rest of World

$136.9

$163.3

19.3%

FY'26

55%

45%

18%

1G%

Note: In $M except % data. Revenue is a GAAP measure. Figures in charts and tables may not total due to rounding.

$M (GAAP, Unaudited)

Q4 FY'26

Cash and Securities

$ 705.1

Accounts Receivable, Net

$ 151.5

Inventories

$ 13.3

Total Long-Term Debt

$ -

Total Deferred Revenue

$ 498.9

Total Stockholders' Equity

$ 1,649.3

Financial Profile (Non-GAAP)

Q4 FY'26

Total Liquidity ($M)

$ 1,305.1

Liquidity to Adjusted EBITDA

5.4x

Gross Leverage

0.0x

Net Leverage

(3.1x)

Credit Facility Net Leverage

(1.3x)

Q1 FY'26

Q2 FY'26

Q3 FY'26

Q4 FY'26

FY'26

$ 73.6

$ 6.6

$ 62.2

$ 152.3

$ 294.5

$ (1.9)

$ (2.2)

$ (2.8)

$ (2.2)

$ (9.1)

$ 71.7

$ 4.3

$ 59.4

$ 150.1

$ 285.4

$M Non-GAAP Free Cash Flow Reconciliation to GAAP

Operating Cash Flow

Purchase of Fixed & Intangible Assets & Capitalized Software

Non-GAAP Free Cash Flow

Note: See the slide entitled "Non-GAAP Financial Metrics" near the beginning of this presentation for a description of the non-GAAP financial measures and to the appendix for information regarding the Financial Profile and Free Cash Flow calculations and for the reconciliation of the non-GAAP financial measures to their most directly comparable GAAP financial measures.

FY'26

FY'27 Outlook

Revenue

$859.5

$885 - $915

EPS (Diluted)

FY'26

FY'27 Outlook

GAAP EPS

$1.30

$1.55 - $1.70

Adjustments

$1.18

$1.10

Non-GAAP EPS

$2.48

$2.65 - $2.80

See the slide entitled "Non-GAAP Financial Metrics" near the beginning of this presentation for a description of the non-GAAP financial measures and the appendix for a reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures.

Other FY'27 Outlook Assumptions

Anticipate non-GAAP effective tax rate of approximately 20%

Anticipate approximately 74 to 75 million weighted average diluted shares outstanding

FY'27 outlook includes the acquisition of the assets of DigiCert, Inc.'s DDoS protection business, which closed on

May 1, 2026 and is expected to be immediately accretive and contribute approximately $20 million of annualized revenue

Upcoming Investor Events

Annual Needham Technology, Media, & Consumer Conference

Date: May 14th, 2026 Location: Virtual

Annual B. Riley Securities Institutional Investor Conference

Date: May 20th, 2026 Location: Marina Del Rey, CA

NETSC

Guardians of the Connected World

$M (except EPS & % data)

Q4 FY'25

Q4 FY'26 Y/Y

Change

Revenue:

$ 205.0

$ 203.0

(1.0%)

Product Revenue

$ 89.5

$ 80.7

(9.8%)

Service Revenue

$ 115.5

$ 122.3

5.9%

Cost of Revenue

$ 45.7

$ 43.9

(3.9%)

Gross Profit

$ 159.3

$ 159.1

(0.1%)

Gross Profit Margin

77.7%

78.4%

Operating Expenses

$ 139.4

$ 139.5

0.1%

Income (loss) from Operations

$ 19.9

$ 19.6

(1.5%)

Income (loss) from Operations Margin

9.7%

9.6%

Net Income (loss)

$ 18.6

$ 18.2

(2.0%)

Diluted Net Income (loss) per Share

$ 0.25

0.0%

Diluted Shares Outstanding

73.4

74.2

FY'25

FY'26 Y/Y

Change

$ 822.7

$ 859.5

4.5%

$ 359.9

$ 370.1

2.8%

$ 462.8

$ 489.3

5.7%

$ 178.7

$ 177.0

(1.0%)

$ 643.9

$ 682.5

6.0%

78.3%

79.4%

$ 1,011.5

$ 572.7

(43.4%)

$ (367.6)

$ 109.8

129.9%

(44.7%)

12.8%

$ (366.9)

$ 95.5

126.0%

$ (5.12)

$ 1.30

125.4%

71.6

73.4

* Figures in charts and tables may not total due to rounding.

(GAAP revenue, other metrics non-GAAP)

$M (except EPS & % data)

Q4 FY'25

Q4 FY'26 Y/Y

Change

FY'25

FY'26 Y/Y

Change

Revenue:

$ 205.0

$ 203.0

(1.0%)

$ 822.7

$ 859.5

4.5%

Product Revenue

$ 89.5

$ 80.7

(9.8%)

$ 359.9

$ 370.1

2.8%

Service Revenue

$ 115.5

$ 122.3

5.9%

$ 462.8

$ 489.3

5.7%

Cost of Revenue

$ 42.6

$ 41.2

(3.3%)

$ 164.9

0.0%

Gross Profit

$ 162.4

$ 161.8

(0.3%)

$ 657.7

$ 694.5

5.6%

Gross Profit Margin

79.2%

79.7%

80.0%

80.8%

Operating Expenses

$ 115.1

$ 117.9

2.4%

$ 462.6

$ 476.1

2.9%

Income from Operations

$ 47.3

$ 43.9

(7.1%)

$ 195.1

$ 218.5

12.0%

Income from Operations Margin

23.1%

21.6%

23.7%

25.4%

Net Income

$ 38.0

$ 38.5

1.2%

$ 160.4

$ 182.0

13.5%

Diluted Net Income per Share

$ 0.52

0.0%

$ 2.22

$ 2.48

11.7%

Diluted Shares Outstanding

73.4

74.2

72.2

73.4

Note: Revenue is a GAAP financial measure. All other amounts are non-GAAP financial measures. See the slide entitled "Non-GAAP Financial Metrics" near the beginning of this presentation for a description of the non-GAAP finance measures and the additional slides in the appendix for a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures.

Figures in charts and tables may not total due to rounding.

Ending 3/31

Ending 12/31

Ending 3/31

2026 2025

2025

2026 2025

$ 203,035

$ 204,987

$ 250,683

$ 859,482

$ 822,679

$ 159,108

$ 159,290

$ 204,654

$ 682,494

$ 643,944

2,176

2,090

2,267

9,830

9,806

550

993

550

2,202

3,978

161,836

162,374

207,473

694,533

657,734

79.7%

79.2%

82.8%

80.8%

80.0%

$ 19,588

$ 19,886

$ 64,315

$ 109,825

$ (367,602)

9.6%

9.7%

25.7%

12.8%

-44.7%

12,599

14,199

13,832

59,948

64,785

11,715

12,576

11,706

46,804

50,418

605

883

20,500

426,967

959

$ 43,939

$ 47,277

$ 89,890

$ 218,467

$ 195,115

21.6%

23.1%

35.9%

25.4%

23.7%

$ 18,240

$ 18,617

$ 55,142

$ 95,531

$ (366,922)

12,599

14,199

13,832

59,948

64,785

11,715

12,576

11,706

46,804

50,418

605

883

20,500

426,967

959

1,134

(4,116)

(8,004)

(6,971)

(22,135)

(36,503)

$ 38,475

$ 38,004

$ 73,746

$ 182,038

$ 160,426

$ 0.25

$ 0.75

$ 1.30

$ (5.12)

$ 0.27

$ 0.25

$ 1.18

$ 7.34

$ 0.52

$ 1.00

$ 2.48

$ 2.22

74,171

73,410

73,820

73,355

72,235

$Thousands (except EPS)

Revenue (GAAP)

Gross Profit (GAAP)

Share-based compensation expense (1)

Amortization of acquired intangible assets (2)

Acquisition related depreciation expense (3)

Non-GAAP Gross Profit

Non-GAAP Gross Margin

Income (Loss) from Operations (GAAP)

GAAP Operating Margin

Share-based compensation expense (1)

Amortization of acquired intangible assets (2)

Restructuring charges

Goodwill impairment

Acquisition related depreciation expense (3)

Executive Transition Costs (4)

Non-GAAP Income from Operations

Non-GAAP Operating Margin

Net Income (Loss) (GAAP)

Share-based compensation expense (1)

Amortization of acquired intangible assets (2)

Restructuring charges

Goodwill impairment

Acquisition related depreciation expense (3)

Executive Transition Costs (4)

Loss on extinguishment of debt (5)

Income tax adjustments (6)

Non-GAAP Net Income

Diluted Net Income (Loss) Per Share (GAAP)

Share impact of non-GAAP adjustments identified above

Non-GAAP Diluted Net Income Per Share

Shares used in computing non-GAAP diluted net income per share

Ending 3/31

Ending 12/31

Ending 3/31

(1) Share-based compensation expense included in these amounts is as follows:

Cost of product revenue

Cost of service revenue

Research and development

Sales and marketing

General and administrative

Total share-based compensation expense

(2) Amortization expense related to acquired software and product technology, tradenames,

customer relationships included in these amounts is as follows:

Cost of product revenue

Operating expenses

Total amortization expense

(3) Acquisition related depreciation expense included in these amounts is as follows:

Cost of product revenue

Cost of service revenue

Research and development

Sales and marketing

General and administrative

Total acquisition related depreciation expense

(4) Executive transition costs included in these amounts is as follows:

General and administrative

Total executive transition costs

(5) Loss on extinguishment of debt included in this amount is as follows

Interest and other (income) expense, net

Total loss on extinguishment of debt

(6) Total income tax adjustment included in this amount is as follows:

Tax effect of non-GAAP adjustments above

Total income tax adjustments

2026

2025

2026

2025

275

283

298

1,283

1,296

1,901

1,807

1,969

8,547

8,510

3,843

4,062

4,114

17,479

17,956

4,412

4,915

4,749

20,721

22,765

2,168

3,132

2,702

11,918

14,258

12,599

14,199

13,832

59,948

64,785

550

993

550

2,202

3,978

11,165

11,583

11,156

44,602

46,440

11,715

12,576

11,706

46,804

50,418

959

1,134

(4,116)

(8,004)

(6,971)

(22,135)

(36,503)

(4,116)

(8,004)

(6,971)

(22,135)

(36,503)

Disclaimer

NetScout Systems Inc. published this content on May 07, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 07, 2026 at 12:36 UTC.