Netscout Q4 revenue beats estimates on service revenue growth

NetScout Systems

07/05/2026 12:46

Overview

US network observability firm's Q4 revenue rose and beat analyst expectations

Adjusted EPS for Q4 beat analyst expectations

Company repurchased 1 mln shares for $29 mln in Q4

Outlook

Netscout expects FY27 revenue between $885 mln and $915 mln

Company sees FY27 GAAP EPS of $1.55 to $1.70; non-GAAP EPS of $2.65 to $2.80

FY27 outlook includes $20 mln annualized revenue from DigiCert DDoS protection business acquisition

Result Drivers

SERVICE REVENUE GROWTH - Service revenue increased and accounted for a larger share of total revenue in Q4, according to company results

PRODUCT BACKLOG INCREASE - Product backlog rose to $50 mln at quarter-end from $33 mln a year earlier, which may support future revenue

Company press release: ID:nBw5T9zPCa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
$203 mln
$198.65 mln (3 Analysts)
Q4 Adjusted EPS
Beat
$0.52
$0.46 (3 Analysts)
Q4 EPS
$0.25
Q4 Adjusted Net Income
Beat
$38.50 mln
$33.81 mln (3 Analysts)
Q4 Net Income
$18.20 mln
Q4 Adjusted Operating Margin
21.60%
Q4 Operating Margin
9.60%


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "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 $36.07, about 1.5% above its May 6 closing price of $35.52

The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 11 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)