NetScout Systems Q1 Earnings Call Highlights

NetScout Systems Q1 Earnings Call Highlights Written by MarketBeat August 7, 2026 Add As Preferred Source Share Share Share This Article Link copied to clipboard. Close Image from MarketBeat Media, LLC. Key Points NetScout reported strong fiscal Q1 2027 results , with revenue up 12.7% to $210.4 million and non-GAAP EPS rising to $0.52 from $0.34. Service assurance revenue led growth, increasing 19.7%, while enterprise revenue rose 19.1%. Government orders worth approximately $10 million to $15 million were pulled into the first quarter , which is expected to make second-quarter comparisons more difficult. Management anticipates roughly flat Q2 revenue but reaffirmed its full-year revenue guidance of $885 million to $915 million and EPS guidance of $2.65 to $2.80. NetScout expanded its cybersecurity capabilities after acquiring DigiCert’s DDoS protection assets, bringing Arbor Cloud infrastructure in-house and doubling mitigation capacity to 30 terabits per second . Gross margin increased to 80.6% and non-GAAP operating margin improved to 20.8%. MarketBeat previews top five stocks to own in September . NetScout Systems NASDAQ: NTCT reported first-quarter fiscal 2027 revenue growth of 13%, citing demand for its service assurance offerings, government-related orders and contributions from its recently acquired cloud DDoS business. The company reaffirmed its full-year outlook, while cautioning that some government orders arrived earlier than anticipated and are expected to affect second-quarter comparisons. For the quarter ended June 30, 2026, NetScout reported revenue of $210.4 million, up 12.7% from $186.7 million in the prior-year period. On a non-GAAP basis, net income was $38.6 million, or $0.52 per diluted share, compared with $24.7 million, or $0.34 per share, a year earlier. Get NetScout Systems alerts: Sign Up President and CEO Anil Singhal said the results reflected demand for high-fidelity visibility across complex enterprise and service-provider technology environments. He said customers are using NetScout’s data and analytics capabilities for observability, AIOps, service assurance, cybersecurity and DDoS attack protection. Service Assurance Leads Revenue Growth Service assurance revenue rose 19.7% year over year during the quarter, while cybersecurity revenue increased 0.6%. Service assurance represented 67% of total revenue, with cybersecurity accounting for the remaining 33%. Singhal said service assurance benefited partly from government-related demand, including orders received before the company had anticipated as customers advanced deployment plans. The business also benefited from sales of its Omnis Sensor and Omnis Streamer products, which provide metadata for observability, cybersecurity and AIOps platforms. Chief Financial Officer Tony Piazza said government-related orders pulled into the first quarter totaled about $10 million to $15 million. Without those orders, he said, quarterly revenue would have increased at a mid-single-digit rate, consistent with the company’s expectations for first-half growth and its full-year outlook. Federal government revenue typically represents a mid- to high-single-digit percentage of total company revenue, Piazza said. In the first quarter, it reached the mid-teens as a percentage of revenue, spread across multiple customers. No individual customer accounted for more than 10% of NetScout’s revenue during the quarter. Enterprise revenue grew 19.1%, while service-provider revenue rose 3.3%. Enterprise customers represented 63% of quarterly revenue, and service providers represented 37%. The United States contributed 59% of revenue and international markets contributed 41%. Cybersecurity Strategy Includes Expanded DDoS Capacity Cybersecurity revenue grew modestly against a difficult comparison, as the prior-year period had increased about 18% due to the timing of large projects, management said. Singhal said cybersecurity remains a long-term growth opportunity for the company...