NetScout Systems, Inc.
- Open
- 43.03
- Day high
- 43.69
- Day low
- 42.53
- Prev close
- 43.55
- Volume
- 293K
- Mkt cap
- $3.1B
- P/E (TTM)
- 32.8
- EPS (TTM)
- $1.32
- P/B
- 1.9
- P/S
- 3.6
- Yield
- —
- Per share
- —
- ▼Insiders net selling -$755K over the last 3 months (0 open-market buys, 4 sales)
- 🏛Institutions accumulating (13F)
NetScout Systems, Inc. (NTCT) is a Technology company listed on NASDAQ. The stock is up 75% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 4 sales (SEC Form 4).
NetScout Systems, Inc. (NTCT) financials & analyst ratings
Fundamentals (TTM)
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
NTCT earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 7, 2026 | $0.46 | $0.52 | +13.0% | $203M | +2.2% |
| Feb 5, 2026 | $0.86 | $1.00 | +16.3% | $233M | -0.2% |
| Nov 6, 2025 | $0.44 | $0.62 | +39.9% | $219M | +9.3% |
| Aug 7, 2025 | $0.29 | $0.34 | +17.2% | $187M | -5.7% |
| May 8, 2025 | $0.52 | $0.52 | +0.0% | $205M | +6.5% |
| Jan 30, 2025 | $0.74 | $0.94 | +27.0% | $252M | +29.4% |
| Oct 24, 2024 | $0.45 | $0.47 | +4.4% | $191M | +1.4% |
| Jul 25, 2024 | $0.13 | $0.28 | +115.4% | $175M | -7.4% |
| May 9, 2024 | $0.53 | $0.55 | +3.8% | $203M | -5.3% |
| Jan 25, 2024 | $0.38 | $0.73 | +92.1% | $218M | +1.6% |
| Nov 2, 2023 | $0.60 | $0.61 | +1.7% | $197M | -15.7% |
| Jul 27, 2023 | $0.31 | $0.31 | +0.0% | $211M | +1.5% |
NTCT insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 25, 2026 | Watt Eric Toddofficer: Chief Accounting Officer | Grant | 10,000 | — |
| Jun 23, 2026 | SZABADOS MICHAELdirector | Tax | 1,782 | $39.67 |
| Jun 23, 2026 | SINGHAL ANIL Kdirector, officer: President & CEO | Tax | 4,609 | $39.67 |
| Jun 23, 2026 | DOWNING JOHNofficer: EVP, World-Wide Sales | Tax | 2,305 | $39.67 |
| Jun 23, 2026 | DOWNING JOHNofficer: EVP, World-Wide Sales | Option | 5,184 | — |
| Jun 23, 2026 | SZABADOS MICHAELdirector | Option | 6,048 | — |
| Jun 23, 2026 | SINGHAL ANIL Kdirector, officer: President & CEO | Option | 10,368 | — |
| Jun 17, 2026 | SINGHAL ANIL Kdirector, officer: President & CEO | Option | 10,800 | — |
| Jun 17, 2026 | Munshi Sanjayofficer: Chief Operating Officer | Option | 2,400 | — |
| Jun 17, 2026 | Munshi Sanjayofficer: Chief Operating Officer | Tax | 585 | $41.42 |
| Jun 17, 2026 | DOWNING JOHNofficer: EVP, World-Wide Sales | Tax | 1,591 | $41.42 |
| Jun 17, 2026 | SINGHAL ANIL Kdirector, officer: President & CEO | Tax | 4,195 | $41.42 |
| Jun 17, 2026 | Piazza Anthony Johnofficer: EVP & Chief Financial Officer | Option | 2,000 | — |
| Jun 17, 2026 | SZABADOS MICHAELdirector | Tax | 1,856 | $41.42 |
| Jun 17, 2026 | DOWNING JOHNofficer: EVP, World-Wide Sales | Option | 5,400 | — |
Source: NTCT SEC Form 4 filings, latest Jun 25, 2026. For informational purposes only — not investment advice.
See the full NTCT insider & 13F page →NetScout Systems, Inc. company profile
Overview
NetScout Systems, Inc. (NASDAQ:NTCT) is a Massachusetts-based technology company founded in 1984 that provides network performance monitoring and cybersecurity solutions. The company went public in 1999 and has evolved from a network monitoring specialist into a dual-focused provider of service assurance and cybersecurity solutions. NetScout serves enterprise customers across various industries and telecommunications service providers globally, operating through both direct sales and channel partnerships.
Business
NetScout operates in the network infrastructure software industry, providing two primary categories of solutions that help organizations maintain and secure their digital operations. Service Assurance Solutions represent approximately 65% of total revenue and focus on network performance monitoring and optimization. The company's flagship product, nGeniusONE, is a management software platform that enables customers to predict, prevent, and resolve network service delivery problems before they impact end users. This solution provides deep visibility into network traffic patterns, application performance, and infrastructure health. The platform includes specialized modules for analyzing radio access networks, Wi-Fi networks, and cloud environments. NetScout also offers nGeniusPULSE, an active testing tool that proactively monitors application availability and performance, and nGenius Business Analytics, which helps service providers analyze network traffic patterns for optimization and capacity planning. Cybersecurity Solutions account for approximately 35% of revenue and are primarily delivered under the Arbor brand. These solutions protect organizations against distributed denial of service (DDoS) attacks and other cyber threats. Key products include Arbor Sightline for DDoS detection and mitigation, Arbor Threat Mitigation System for real-time attack blocking, and Arbor Edge Defense for perimeter protection. The company has recently expanded into network detection and response (NDR) with its Omnis Cyber Intelligence platform, which uses artificial intelligence and machine learning to identify advanced persistent threats and suspicious network behavior. The company serves two main customer verticals: Enterprise customers (approximately 57% of revenue) spanning financial services, healthcare, manufacturing, technology, and government sectors, and Service Provider customers (approximately 43% of revenue) including mobile operators, cable companies, internet service providers, and cloud providers.
Revenue model
NetScout generates revenue through a combination of product sales, software licensing, and ongoing service contracts. The business model centers on selling both hardware appliances and software licenses upfront, followed by recurring revenue from maintenance, support, and subscription services. The company's revenue streams include initial product and software sales, which typically represent the larger portion of customer engagements, and ongoing service revenue from maintenance contracts, technical support, and managed services. Service revenue provides a stable, recurring base that represents approximately 55-60% of total revenue. Many customers also purchase professional services for implementation, optimization, and training. NetScout's profitability is influenced by several key factors. Positive margin drivers include the high-margin nature of software and services revenue, the company's ability to leverage its installed base for recurring revenue, and economies of scale in research and development across its broad product portfolio. The company benefits from long-term customer relationships, as network monitoring and security solutions become deeply embedded in customer operations, creating switching costs and opportunities for expansion sales. Margin pressures come from intense competition in both network monitoring and cybersecurity markets, requiring continuous investment in research and development to maintain technological leadership. The company faces pricing pressure from both established competitors and emerging cloud-native solutions. Additionally, the cyclical nature of telecommunications infrastructure spending, particularly from service provider customers, can create revenue volatility. Macroeconomic conditions affecting enterprise IT spending and the ongoing shift toward cloud-based solutions also present challenges to traditional on-premises product sales. The company's cost structure includes significant ongoing investments in product development, sales and marketing to compete in rapidly evolving technology markets, and customer support operations to maintain high service levels for its global customer base.
Competitive moat
NetScout operates in highly competitive markets with limited sustainable competitive advantages. The company's primary defensive positions stem from customer switching costs and deep product integration rather than truly insurmountable barriers to entry. The company's strongest moat elements include its extensive installed base of network monitoring infrastructure, which creates switching costs due to the complexity of replacing embedded monitoring systems and the institutional knowledge required to operate them effectively. NetScout benefits from long-term customer relationships built over decades, particularly with large telecommunications providers and enterprise customers who view network monitoring as mission-critical infrastructure. The company's Visibility Without Borders platform provides some differentiation through its ability to provide unified visibility across hybrid cloud, on-premises, and edge environments. NetScout's deep packet inspection technology and extensive protocol support create technical advantages, particularly for complex telecommunications networks. However, these advantages face significant competitive threats. In the cybersecurity space, NetScout competes against well-funded specialists like Cloudflare, Akamai, and numerous emerging security vendors with more modern architectures. The network monitoring market faces disruption from cloud-native solutions, artificial intelligence-driven analytics platforms, and integrated offerings from major cloud providers like AWS, Microsoft, and Google. The company's moat is further weakened by the ongoing shift toward software-defined networking and cloud infrastructure, which reduces the need for traditional hardware-based monitoring appliances. Additionally, the consolidation of telecommunications providers and their increasing preference for integrated solutions from major vendors creates challenges for specialized providers like NetScout. Overall, NetScout's competitive position is moderate but declining, with the company working to reinvent itself through artificial intelligence integration and expanded cybersecurity offerings to maintain relevance in evolving markets.
Risks & safety
NetScout demonstrates solid financial stability with moderate debt levels and adequate liquidity, though recent performance shows some concerning trends. • Liquidity and Solvency: Strong cash position of $398 million with current ratio of 1.81, indicating good short-term financial health. Debt-to-equity ratio of 0.077 shows conservative capital structure with minimal leverage risk. • Cash Generation: Free cash flow of $40 million in Q3 2025, though this represents a significant decline from historical levels. Full-year fiscal 2025 generated $212 million in free cash flow, demonstrating the business still generates positive cash despite revenue challenges. • Valuation Metrics: Trading at P/E ratio of 8.0 based on recent earnings, though this reflects significant one-time charges. EV/EBITDA of 4.1 suggests reasonable valuation relative to cash generation capacity. • Operational Concerns: Revenue declining year-over-year in core service assurance business, with total revenue growth dependent on cybersecurity expansion. The company has implemented cost reduction programs including workforce reductions to maintain profitability. • Balance Sheet Strength: Total assets of $2.2 billion with shareholders' equity providing substantial cushion. However, the company carries significant intangible assets that could face impairment if business conditions deteriorate further.
Recent development
Over the past several years, NetScout has undergone significant strategic transformation aimed at repositioning the company for growth in evolving technology markets. The most significant development has been the aggressive expansion into cybersecurity beyond traditional DDoS protection, with management targeting cybersecurity to become a larger portion of total revenue. The company has invested heavily in artificial intelligence and machine learning capabilities, launching Omnis AI Insights and enhancing its Omnis Cyber Intelligence platform for network detection and response. These solutions represent NetScout's attempt to move beyond basic network monitoring into advanced threat detection and automated response capabilities. In response to declining service provider spending, NetScout has implemented substantial cost reduction initiatives, including voluntary separation programs that eliminated approximately $25-27 million in annual costs. The company has also restructured its go-to-market approach, forming strategic partnerships with companies like Palo Alto Networks and AWS to expand market reach. The company has been developing next-generation solutions for emerging network technologies, including 5G network slicing, fixed wireless access monitoring, and edge computing instrumentation. Management has positioned these as potential growth drivers as telecommunications providers modernize their infrastructure. Recent leadership changes include the announcement of executive transitions, with Michael Szabados and Jean Bua retiring and new leadership taking over key operational and financial roles. This represents a significant generational change for the company as it navigates market transformation. NetScout has also been exploring subscription-based pricing models and software-as-a-service delivery options to align with customer preferences for operational expenditure rather than capital expenditure, though this transition remains in early stages.
NTCT company profile · for informational purposes only — not investment advice.
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