Netscout Sys Inc Financials
This page shows Netscout Sys Inc (NTCT) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 17 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Accounting losses mask a cash-generating, debt-free model as non-cash balance-sheet charges overpower otherwise high gross margins.
FY2025's-$367M net loss arrived alongside$218M of operating cash flow, so the income statement and cash statement are describing very different economics. With goodwill down by$426M from FY2024 and debt eliminated to$0 , the pressure appears concentrated in non-cash asset write-downs rather than in the cash cost of running the business.
Gross margin stayed near
This is a low-capex business: FY2025 capital spending was only
Financial Health Signals
Based on FY2026 annual data, averaged across the last 3 years for performance metrics (most-recent year weighted highest). How this score is calculated →
Health score ≠ stock price. This rates the quality of Netscout Sys Inc's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Netscout Sys Inc has an operating margin of 12.8%, meaning the company retains $13 of operating profit per $100 of revenue. This below-average margin results in a low score of 0/100, suggesting thin profitability after operating expenses. This is up from -44.7% the prior year.
Netscout Sys Inc's revenue grew a modest 4.5% year-over-year to $859.5M. This slow but positive growth earns a score of 36/100.
Netscout Sys Inc carries a low D/E ratio of 0.43, meaning only $0.43 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 93/100, indicating a strong balance sheet with room for future borrowing.
Netscout Sys Inc's current ratio of 1.85 indicates adequate short-term liquidity, earning a score of 33/100. The company can meet its near-term obligations, though with limited headroom.
Netscout Sys Inc converts 33.2% of revenue into free cash flow ($285.4M). This strong cash generation earns a score of 89/100.
Netscout Sys Inc generates a 5.8% ROE, indicating limited profit relative to shareholders' investment. This results in a returns score of 0/100. This is up from -23.5% the prior year.
Netscout Sys Inc scores 3.15, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($2.8B) relative to total liabilities ($705.3M). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.
Netscout Sys Inc passes 6 of 9 financial strength tests. All 4 profitability signals pass (positive income, cash flow, and earnings quality), 1 of 3 leverage/liquidity signals pass, 1 of 2 efficiency signals pass.
For every $1 of reported earnings, Netscout Sys Inc generates $3.08 in operating cash flow ($294.5M OCF vs $95.5M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Netscout Sys Inc earns $64.4 in operating income for every $1 of interest expense ($109.8M vs $1.7M). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.
Key Financial Metrics
Earnings & Revenue
Netscout Sys Inc generated $859.5M in revenue in fiscal year 2026. This represents an increase of 4.5% from the prior year.
Netscout Sys Inc's EBITDA was $166.4M in fiscal year 2026, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 154.8% from the prior year.
Netscout Sys Inc reported $95.5M in net income in fiscal year 2026. This represents an increase of 126.0% from the prior year.
Netscout Sys Inc earned $1.30 per diluted share (EPS) in fiscal year 2026. This represents an increase of 125.4% from the prior year.
Cash & Balance Sheet
Netscout Sys Inc generated $285.4M in free cash flow in fiscal year 2026, representing cash available after capex. This represents an increase of 34.5% from the prior year.
Netscout Sys Inc held $586.5M in cash against $0 in long-term debt as of fiscal year 2026.
Netscout Sys Inc had 71M shares outstanding in fiscal year 2026. This represents an increase of 0.2% from the prior year.
Margins & Returns
Netscout Sys Inc's gross margin was 79.4% in fiscal year 2026, indicating the percentage of revenue retained after direct costs. This is up 1.1 percentage points from the prior year.
Netscout Sys Inc's operating margin was 12.8% in fiscal year 2026, reflecting core business profitability. This is up 57.5 percentage points from the prior year.
Netscout Sys Inc's net profit margin was 11.1% in fiscal year 2026, showing the share of revenue converted to profit. This is up 55.7 percentage points from the prior year.
Netscout Sys Inc's ROE was 5.8% in fiscal year 2026, measuring profit generated per dollar of shareholder equity. This is up 29.3 percentage points from the prior year.
Capital Allocation
Netscout Sys Inc invested $159.5M in research and development in fiscal year 2026. This represents an increase of 4.3% from the prior year.
Netscout Sys Inc spent $60.8M on share buybacks in fiscal year 2026, returning capital to shareholders by reducing shares outstanding. This represents an increase of 140.7% from the prior year.
Netscout Sys Inc invested $9.1M in capex in fiscal year 2026, funding long-term assets and infrastructure. This represents an increase of 68.5% from the prior year.
NTCT Income Statement
| Metric | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $203.0M-19.0% | $250.7M+14.5% | $219.0M+17.3% | $186.7M-8.9% | $205.0M-18.7% | $252.0M+31.9% | $191.1M+9.5% | $174.6M |
| Cost of Revenue | $43.9M-4.6% | $46.0M+5.5% | $43.6M+0.4% | $43.4M-5.0% | $45.7M-2.0% | $46.6M+10.8% | $42.1M-5.2% | $44.4M |
| Gross Profit | $159.1M-22.3% | $204.7M+16.7% | $175.4M+22.4% | $143.3M-10.0% | $159.3M-22.5% | $205.4M+37.8% | $149.1M+14.5% | $130.2M |
| R&D Expenses | $39.8M+0.3% | $39.6M-1.6% | $40.3M+1.2% | $39.8M+8.3% | $36.7M-2.7% | $37.8M+5.1% | $35.9M-15.4% | $42.5M |
| SG&A Expenses | $24.9M+3.3% | $24.1M-8.1% | $26.3M-5.7% | $27.9M+16.5% | $23.9M+1.8% | $23.5M-1.1% | $23.7M-7.2% | $25.6M |
| Operating Income | $19.6M-69.5% | $64.3M+98.0% | $32.5M+594.9% | -$6.6M-133.0% | $19.9M-67.8% | $61.7M+337.0% | $14.1M+103.0% | -$463.3M |
| Interest Expense | $413K-9.4% | $456K+8.3% | $421K+1.4% | $415K-45.8% | $765K-71.1% | $2.6M+47.1% | $1.8M-7.4% | $1.9M |
| Income Tax | $5.1M-55.5% | $11.5M+106.4% | $5.6M+552.6% | $851K+304.6% | -$416K-104.9% | $8.6M+159.6% | $3.3M+132.0% | -$10.3M |
| Net Income | $18.2M-66.9% | $55.1M+113.5% | $25.8M+802.0% | -$3.7M-119.8% | $18.6M-61.9% | $48.8M+440.7% | $9.0M+102.0% | -$443.4M |
| EPS (Diluted) | N/A | $0.75+114.3% | $0.35+800.0% | $-0.05 | N/A | $0.67+415.4% | $0.13+102.1% | $-6.20 |
NTCT Balance Sheet
| Metric | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $2.4B+1.4% | $2.3B+6.7% | $2.2B+0.9% | $2.2B-1.3% | $2.2B+0.5% | $2.2B+5.0% | $2.1B-0.7% | $2.1B |
| Current Assets | $867.9M+1.3% | $856.8M+21.0% | $708.0M+3.5% | $683.9M-4.1% | $713.2M+3.0% | $692.2M+18.6% | $583.7M-1.1% | $590.0M |
| Cash & Equivalents | $586.5M+8.5% | $540.6M+11.8% | $483.4M-1.3% | $489.6M+7.0% | $457.4M+14.8% | $398.4M+9.6% | $363.4M+0.3% | $362.2M |
| Inventory | $13.3M+7.3% | $12.4M+0.2% | $12.4M-5.1% | $13.0M+1.2% | $12.9M-10.6% | $14.4M-12.0% | $16.4M+9.3% | $15.0M |
| Accounts Receivable | $151.5M-35.4% | $234.6M+80.2% | $130.2M+41.2% | $92.2M-43.7% | $163.7M-23.7% | $214.6M+80.9% | $118.6M-8.2% | $129.3M |
| Goodwill | $1.1B+0.1% | $1.1B0.0% | $1.1B-0.1% | $1.1B-0.6% | $1.1B-0.3% | $1.1B+0.5% | $1.1B-0.3% | $1.1B |
| Total Liabilities | $705.3M+3.7% | $680.4M+12.9% | $602.6M-1.2% | $609.9M-2.6% | $626.2M-4.3% | $654.2M+7.0% | $611.3M-6.4% | $653.4M |
| Current Liabilities | $470.1M+6.2% | $442.6M+17.3% | $377.4M-2.5% | $387.0M-5.1% | $407.9M+6.9% | $381.8M+10.0% | $347.1M-9.4% | $383.2M |
| Long-Term Debt | N/A | N/A | N/A | N/A | $0-100.0% | $75.0M0.0% | $75.0M0.0% | $75.0M |
| Total Equity | $1.6B+0.5% | $1.6B+4.3% | $1.6B+1.7% | $1.5B-0.8% | $1.6B+2.6% | $1.5B+4.2% | $1.5B+1.9% | $1.4B |
| Retained Earnings | $51.1M+55.5% | $32.8M+247.3% | -$22.3M+53.7% | -$48.1M-8.3% | -$44.4M+29.5% | -$63.1M+43.6% | -$111.9M+7.5% | -$120.9M |
NTCT Cash Flow Statement
| Metric | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $152.3M+145.3% | $62.1M+832.9% | $6.7M-91.0% | $73.6M-48.0% | $141.5M+241.4% | $41.5M+1211.6% | -$3.7M-109.7% | $38.4M |
| Capital Expenditures | $2.2M-22.3% | $2.8M+26.1% | $2.2M+18.9% | $1.9M+34.3% | $1.4M-24.8% | $1.9M+110.8% | $882K-30.4% | $1.3M |
| Free Cash Flow | $150.1M+153.3% | $59.3M+1240.4% | $4.4M-93.8% | $71.7M-48.8% | $140.1M+253.9% | $39.6M+958.6% | -$4.6M-112.4% | $37.2M |
| Investing Cash Flow | -$75.5M-1472.9% | -$4.8M-201.5% | $4.7M+127.3% | -$17.3M-91.3% | -$9.0M-859.4% | $1.2M-69.8% | $3.9M+227.5% | -$3.1M |
| Financing Cash Flow | -$29.4M-5908.4% | -$490K+97.3% | -$18.0M+37.5% | -$28.8M+61.9% | -$75.5M-2615.0% | -$2.8M-74.1% | -$1.6M+97.4% | -$62.2M |
| Dividends Paid | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | $29.2M+2923200.0% | $1K-100.0% | $16.6M+10.2% | $15.0M | $0 | $0-100.0% | $257K-99.0% | $25.0M |
NTCT Financial Ratios
| Metric | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 78.4%-3.3pp | 81.6%+1.6pp | 80.1%+3.3pp | 76.8%-1.0pp | 77.7%-3.8pp | 81.5%+3.5pp | 78.0%+3.4pp | 74.6% |
| Operating Margin | 9.7%-16.0pp | 25.7%+10.8pp | 14.8%+18.3pp | -3.5%-13.2pp | 9.7%-14.8pp | 24.5%+17.1pp | 7.4%+272.8pp | -265.4% |
| Net Margin | 9.0%-13.0pp | 22.0%+10.2pp | 11.8%+13.8pp | -2.0%-11.1pp | 9.1%-10.3pp | 19.4%+14.7pp | 4.7%+258.7pp | -254.0% |
| Return on Equity | 1.1%-2.3pp | 3.4%+1.7pp | 1.6%+1.9pp | -0.2%-1.4pp | 1.2%-2.0pp | 3.2%+2.6pp | 0.6%+31.6pp | -31.0% |
| Return on Assets | 0.8%-1.6pp | 2.4%+1.2pp | 1.2%+1.4pp | -0.2%-1.0pp | 0.9%-1.4pp | 2.2%+1.8pp | 0.4%+21.7pp | -21.3% |
| Current Ratio | 1.85-0.1 | 1.94+0.1 | 1.88+0.1 | 1.77+0.0 | 1.75-0.1 | 1.81+0.1 | 1.68+0.1 | 1.54 |
| Debt-to-Equity | 0.43+0.0 | 0.41+0.0 | 0.38-0.0 | 0.39+0.4 | 0.00-0.0 | 0.050.0 | 0.050.0 | 0.05 |
| FCF Margin | 73.9%+50.3pp | 23.6%+21.6pp | 2.0%-36.4pp | 38.4%-30.0pp | 68.4%+52.6pp | 15.7%+18.1pp | -2.4%-23.7pp | 21.3% |
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Frequently Asked Questions
What is Netscout Sys Inc's annual revenue?
Netscout Sys Inc (NTCT) reported $859.5M in total revenue for fiscal year 2026. This represents a 4.5% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Netscout Sys Inc's revenue growing?
Netscout Sys Inc (NTCT) revenue grew by 4.5% year-over-year, from $822.7M to $859.5M in fiscal year 2026.
Is Netscout Sys Inc profitable?
Yes, Netscout Sys Inc (NTCT) reported a net income of $95.5M in fiscal year 2026, with a net profit margin of 11.1%.
What is Netscout Sys Inc's EBITDA?
Netscout Sys Inc (NTCT) had EBITDA of $166.4M in fiscal year 2026, measuring earnings before interest, taxes, depreciation, and amortization.
What is Netscout Sys Inc's gross margin?
Netscout Sys Inc (NTCT) had a gross margin of 79.4% in fiscal year 2026, indicating the percentage of revenue retained after direct costs of goods sold.
What is Netscout Sys Inc's operating margin?
Netscout Sys Inc (NTCT) had an operating margin of 12.8% in fiscal year 2026, reflecting the profitability of core business operations before interest and taxes.
What is Netscout Sys Inc's net profit margin?
Netscout Sys Inc (NTCT) had a net profit margin of 11.1% in fiscal year 2026, representing the share of revenue converted into profit after all expenses.
What is Netscout Sys Inc's return on equity (ROE)?
Netscout Sys Inc (NTCT) has a return on equity of 5.8% for fiscal year 2026, measuring how efficiently the company generates profit from shareholder equity.
What is Netscout Sys Inc's free cash flow?
Netscout Sys Inc (NTCT) generated $285.4M in free cash flow during fiscal year 2026. This represents a 34.5% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Netscout Sys Inc's operating cash flow?
Netscout Sys Inc (NTCT) generated $294.5M in operating cash flow during fiscal year 2026, representing cash generated from core business activities.
What are Netscout Sys Inc's total assets?
Netscout Sys Inc (NTCT) had $2.4B in total assets as of fiscal year 2026, including both current and long-term assets.
What are Netscout Sys Inc's capital expenditures?
Netscout Sys Inc (NTCT) invested $9.1M in capital expenditures during fiscal year 2026, funding long-term assets and infrastructure.
How much does Netscout Sys Inc spend on research and development?
Netscout Sys Inc (NTCT) invested $159.5M in research and development during fiscal year 2026.
What is Netscout Sys Inc's current ratio?
Netscout Sys Inc (NTCT) had a current ratio of 1.85 as of fiscal year 2026, which is generally considered healthy.
What is Netscout Sys Inc's debt-to-equity ratio?
Netscout Sys Inc (NTCT) had a debt-to-equity ratio of 0.43 as of fiscal year 2026, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Netscout Sys Inc's return on assets (ROA)?
Netscout Sys Inc (NTCT) had a return on assets of 4.1% for fiscal year 2026, measuring how efficiently the company uses its assets to generate profit.
What is Netscout Sys Inc's Altman Z-Score?
Netscout Sys Inc (NTCT) has an Altman Z-Score of 3.15, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Netscout Sys Inc's Piotroski F-Score?
Netscout Sys Inc (NTCT) has a Piotroski F-Score of 6 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Netscout Sys Inc's earnings high quality?
Netscout Sys Inc (NTCT) has an earnings quality ratio of 3.08x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Netscout Sys Inc cover its interest payments?
Netscout Sys Inc (NTCT) has an interest coverage ratio of 64.4x, meaning it can comfortably cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Netscout Sys Inc?
Netscout Sys Inc (NTCT) scores 42 out of 100 on our Financial Profile, indicating moderate overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.