Netscout Systems earnings date
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Netscout Systems (NTCT) Q2 2027 Earnings Report
NTCT Q2 2027 EPS Results
- Actual EPS
- $0.71
- Consensus EPS
- $0.66
- Beat/Miss
- Beat by +$0.05
- One Year Ago EPS
- $0.62
NTCT Q2 2027 Revenue Results
- Actual Revenue
- $222.19M
- Expected Revenue
- $218.77M
- Beat/Miss
- Beat by +$3.41M
- YoY Revenue Growth
- +1.45%
Earnings Announcement Details
- Quarter
- Q2 2027
- Date
- 11/05/2026
- Time
- Before Open
- Conference Call
- Thursday, November 5, 2026
Netscout Systems's next earnings date is estimated for January 28, 2027, based on past reporting schedules.
Q2 2027 Earnings Call Audio
Q2 2027 Earnings Slide Deck
Q2 2027 Earnings Call Summary
The call was broadly positive: the company delivered first-half revenue and EPS growth, expanded operating margins, reaffirmed its full-year outlook, generated strong enterprise and federal demand, and reported significant customer interest in AI-ready Smart Data, cybersecurity, and DDoS solutions. The positive outlook was tempered by declining quarterly product revenue, tight service provider spending, macroeconomic and regional challenges, longer AI sales cycles, supply chain pressures, a second-quarter free cash flow use, and a leadership transition.
NetScout reaffirmed fiscal year 2027 expectations for year-over-year growth in both revenue and earnings, with revenue in the range of $885 million-$915 million, Non-GAAP EPS in the range of $2.65-$2.80, a non-GAAP effective tax rate of approximately 20%, and weighted average diluted shares outstanding of approximately 74 million to 75 million. For the third quarter, the company expects revenue in the range of $240 million-$250 million and non-GAAP diluted earnings per share for Q3 in the range of $0.90-$0.95; excluding the $15 million pulled forward last year, that would imply growth in the low to mid-single digits. Cyber is expected to be in the mid-single digits for fiscal year 2027, while federal revenue was described as running in the low teens as a percentage of total revenue for the first half, with a good pipeline going into the second half of the year.
- First-Half Revenue and Earnings GrowthFirst-half fiscal 2027 revenue increased 6.6% to $432.6 million, described as nearly 7% growth, while diluted EPS rose to $1.23 from $0.95.
- Second-Quarter Profitability ImprovementSecond-quarter revenue increased approximately 1.4% to $222.2 million from $219 million. Operating margin expanded to 28.3% from 26.5%, net income increased to $52.8 million from $45.1 million, and diluted EPS rose to $0.71 from $0.62.
- Cost Discipline and Margin ExpansionManagement said continued cost discipline supported operating margin expansion. Quarterly operating expenses declined 2.7% year over year to $116.9 million, with the comparison also benefiting from the ENGAGE User Summit shifting from the second quarter last year to the third quarter this year.
- Full-Year Outlook ReaffirmedThe company reaffirmed its fiscal 2027 outlook, including revenue of $885 million-$915 million, non-GAAP EPS of $2.65-$2.80, a non-GAAP effective tax rate of approximately 20%, and weighted average diluted shares outstanding of approximately 74 million to 75 million.
- Service Assurance and Cybersecurity GrowthFor the first half, Service Assurance revenue increased 8.2% and cybersecurity revenue grew 3.8%. Service Assurance represented approximately 66% of total revenue and cybersecurity represented the remaining 34%.
- Enterprise Growth and Revenue MixFirst-half enterprise revenue grew 9.1%, while service provider revenue grew 2.8%. Enterprise customers represented approximately 62% of total revenue and service providers represented the remaining 38%. No single customer accounted for more than 10% of revenue in either the second quarter or first half.
- Federal Business StrengthFederal revenue represented a low-teens percentage of total revenue in the first half, compared with its usual mid to high single digits, and management said the company had a good pipeline entering the second half.
- AI-Ready Smart Data and Omnis OpportunityNetScout expanded its DPI-derived, AI-ready Smart Data platform for observability, Service Assurance, cybersecurity, and AI workflows. Management reported a dramatic increase in the Smart Data and Omnis funnel, very strong interest and traction, and potential for subscription-based sales to build ARR and improve future predictability.
- New AI and Observability CapabilitiesThe company launched nGenius Copilot, which converts natural-language questions into evidence-based answers, and introduced Model Context Protocol connectivity for Omnis AI Insights, enabling AI assistants and agents to access NetScout's real-time operational evidence without requiring customers to replatform.
- DDoS and Cybersecurity Product ExpansionNetScout expanded Adaptive DDoS Protection to detect and mitigate outbound attack traffic from compromised subscriber devices and enhanced Arbor Edge Defense to identify attack sources hidden behind content delivery proxies. Management said cybersecurity should grow in the mid-single digits in fiscal 2027 and remains a long-term opportunity as DDoS attacks become more frequent and sophisticated.
- Customer Wins and Repeat BusinessThe company secured a high seven-figure win with a longstanding U.S. financial institution for new infrastructure and upgrades supporting customer-facing networks, unified communications, network performance, and large multi-cluster Kubernetes deployments. It also won a low seven-figure order from a global service provider for Adaptive DDoS Protection used in managed DDoS services.
- Strong Customer Engagement and Innovation InvestmentThe October ENGAGE Technology and User Summit showcased new solutions to more than 400 customers and partners. Management said the company will continue investing in innovation, including data and intelligence to power AI-driven workflows, Network Observability, AIOps, and DDoS attack protection.
- Third-Quarter Revenue OutlookThird-quarter revenue is expected to be $240 million-$250 million. Excluding approximately $15 million of revenue pulled forward into last year's third quarter, this implies growth in the low to mid-single digits.
- Share Repurchases and Balance-Sheet CapacityNetScout repurchased approximately 2 million shares for approximately $77 million during the second quarter, has remaining capacity under its authorization, and intends to remain active subject to market conditions. The company had no outstanding balance on its $600 million revolving credit facility, which expires in October 2029.
- Long-Term Service Provider OpportunitiesNetScout's 5G observability solution supports standalone 5G, fixed wireless access, and network slicing. Management also cited opportunities in emerging use cases such as AI compute at the edge and said it is pursuing enterprise agreements and multi-year agreements to make the service provider business more predictable.
NTCT Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Jan 28, 2027 | 2027 (Q3) | 0.92- | 1 | ― | ― |
| Nov 05, 2026 | 2027 (Q2) | 0.660.71 | 0.62 | 14.52% (+0.09) | |
| Aug 06, 2026 | 2027 (Q1) | 0.380.52 | 0.34 | 52.94% (+0.18) | |
| May 07, 2026 | 2026 (Q4) | 0.460.52 | 0.52 | 0.00% (+0.00) | |
| Feb 05, 2026 | 2026 (Q3) | 0.831.00 | 0.94 | 6.38% (+0.06) | |
| Nov 06, 2025 | 2026 (Q2) | 0.440.62 | 0.47 | 31.91% (+0.15) | |
| Aug 07, 2025 | 2026 (Q1) | 0.290.34 | 0.28 | 21.43% (+0.06) | |
| May 08, 2025 | 2025 (Q4) | 0.510.52 | 0.55 | -5.45% (-0.03) | |
| Jan 30, 2025 | 2025 (Q3) | 0.710.94 | 0.73 | 28.77% (+0.21) | |
| Oct 24, 2024 | 2025 (Q2) | 0.450.47 | 0.61 | -22.95% (-0.14) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
