Netscout Q3 adjusted net income beats expectations

NetScout Systems

05/02/2026 12:37

Overview

Network observability provider's fiscal Q3 revenue declined slightly yr/yr

Adjusted net income for fiscal Q3 beat analyst expectations

Company raised fiscal year 2026 revenue and net income outlook

Outlook

Netscout raises fiscal year 2026 revenue outlook midpoint to $835 mln to $870 mln

Company expects fiscal year 2026 GAAP EPS between $1.15 and $1.23

Netscout anticipates fiscal year 2026 non-GAAP EPS between $2.37 and $2.45

Result Drivers

ACCELERATED ORDERS - Netscout's Q3 performance was boosted by product orders and service renewals initially expected in Q4, as customers utilized year-end budgets

SEGMENT GROWTH - Growth in Cybersecurity and Service Assurance offerings contributed to solid year-over-year results

AI PLATFORM FOCUS - Netscout aims to leverage its AI-ready platform to address market demands and enhance margins

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 EPS
$0.75
Q3 Adjusted Net Income
Beat
$73.70 mln
$60.56 mln (3 Analysts)
Q3 Net Income
$55.10 mln
Q3 Adjusted Operating Margin
35.90%
Q3 Operating Margin
25.70%


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "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 $32.00, about 12.6% above its February 4 closing price of $28.42

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

Press Release: ID:nBw4QPtC2a

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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.)