Netscout Q1 revenue beats expectations on service assurance orders growth

NetScout Systems

06/08/2026 12:49

Overview
U.S. network observability provider's fiscal Q1 revenue grew ~13%, beating analyst expectations
Adjusted EPS for fiscal Q1 beat consensus, driven by service assurance and new product traction
Company doubled Arbor Cloud mitigation capacity after DigiCert DDoS asset acquisition

Outlook
NETSCOUT sees FY2027 revenue between $885 mln and $915 mln
Company expects FY2027 GAAP EPS between $1.55 and $1.70
NETSCOUT expects FY2027 non-GAAP EPS between $2.65 and $2.80

Result Drivers
SERVICE ASSURANCE ORDERS - Growth in Service Assurance offering, helped by government-related orders received earlier than anticipated, drove Q1 performance, per CEO Anil Singhal
NEW PRODUCT TRACTION - Omnis Sensor and Streamer solutions contributed to revenue growth, according to CEO Anil Singhal
CYBERSECURITY FLAT - Cybersecurity revenue was consistent with the prior year, with management noting a strong comparison period

Company press release: ID:nBw2LZK86a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
 
$210.42 mln
 
Q1 Revenue
Beat
$210.40 mln
$196.17 mln (3 Analysts)
Q1 Adjusted EPS
Beat
$0.52
$0.38 (3 Analysts)
Q1 Adjusted Net Income
Beat
$38.60 mln
$28.66 mln (3 Analysts)
Q1 Net Income
 
$21.80 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the it services & consulting peer group is "buy"
Wall Street's median 12-month price target for NetScout Systems, Inc. is $44.00, about 7.3% above its August 5 closing price of $41.02
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 13 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)