Netscout Systems (NTCT) AI Stock Analysis

• Market Cap: $2.07B
• Dividend Yield: N/A
• Average Volume (3M): 503.66K
• Price to Earnings (P/E): 23.4
• Beta (1Y): 1.01
• Revenue Growth: 9.60%
• EPS Growth: N/A
• Country: US
• Employees: 2,273
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.62
• Shares Outstanding: 72,193,670
• 10 Day Avg. Volume: 611,306
• 30 Day Avg. Volume: 503,659
• PEG Ratio: -0.03
• Price to Book (P/B): 0.97
• Price to Sales (P/S): 1.83
• P/FCF Ratio: 7.10
• Enterprise Value/Market Cap: 0.68
• Enterprise Value/Revenue: 1.63
• Enterprise Value/Gross Profit: 2.06
• Enterprise Value/Ebitda: 8.09
• 1Y Price Target: $33.00
• Price Target Upside: 16.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 2.33
• Revenue Forecast (FY): $847.14M

• Rating: 75 Outperform
• Price Target: $33.00 ▲(16.61% Upside)

Netscout Systems' overall stock score is driven by strong financial performance and a positive earnings call, highlighting revenue and earnings growth. The technical analysis indicates a positive trend, though caution is advised due to the high RSI. The valuation is less favorable due to a high P/E ratio and lack of dividend yield.

Netscout Systems Business Overview & Revenue Model

Company Description

Netscout Systems (NTCT) is a global provider of application and network performance management solutions. The company specializes in delivering visibility, troubleshooting, and security solutions across a range of sectors, including telecommunications, financial services, and cloud service providers. Its core products include software and hardware solutions that help organizations monitor, analyze, and optimize their IT infrastructures, ensuring optimal performance and security for their applications and networks.

How the Company Makes Money

Netscout generates revenue primarily through the sale of its software and hardware products, which are designed to enhance network performance and security. The company operates on a subscription-based model for many of its software solutions, providing recurring revenue through annual subscriptions and maintenance contracts. Additionally, Netscout earns revenue from professional services, such as consulting, deployment, and training, which help clients integrate its solutions into their existing systems. Strategic partnerships with telecommunications companies and technology providers also contribute to its earnings, as these alliances often lead to joint offerings and expanded market reach, enhancing overall sales.

Netscout Systems Financial Statement Overview

Summary

Netscout Systems demonstrates solid financial performance with strong profitability and cash flow metrics. The company has improved its margins and profitability, reduced leverage, and maintained a healthy cash flow position. While revenue growth is moderate, the overall financial health is stable, with a positive outlook for continued improvement.

Income Statement

Netscout Systems shows a strong gross profit margin of 78.7% TTM, indicating efficient cost management. The net profit margin improved significantly to 8.7% TTM from a negative margin in the previous annual report, reflecting a turnaround in profitability. Revenue growth is modest at 3.3% TTM, but the positive trend is a good sign. EBIT and EBITDA margins have also improved, signaling better operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is low at 0.027 TTM, indicating low leverage and financial stability. Return on equity has improved to 4.8% TTM from negative in the previous period, showing better profitability. The equity ratio is strong, suggesting a solid financial foundation. However, the company has experienced fluctuations in equity and returns in the past.

Cash Flow

Netscout Systems has shown a healthy free cash flow growth rate of 3.66% TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is robust at 0.65, and the free cash flow to net income ratio is nearly 1, demonstrating efficient cash conversion. The company has consistently generated positive free cash flow, supporting its financial health.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	862.77M	822.68M	829.46M	914.53M	855.58M	831.28M
Gross Profit	683.43M	643.94M	642.04M	691.43M	641.39M	609.18M
EBITDA	174.28M	-294.85M	-60.87M	174.01M	146.72M	139.01M
Net Income	89.58M	-366.92M	-147.73M	59.65M	35.87M	19.35M
Balance Sheet
Total Assets	2.18B	2.19B	2.60B	2.82B	3.19B	3.09B
Cash, Cash Equivalents and Short-Term Investments	516.86M	491.47M	423.13M	419.00M	703.20M	476.45M
Total Debt	43.55M	43.50M	150.08M	160.47M	415.34M	423.62M
Total Liabilities	602.63M	626.18M	703.24M	790.91M	1.13B	1.08B
Stockholders Equity	1.57B	1.56B	1.89B	2.03B	2.06B	2.01B
Cash Flow
Free Cash Flow	255.81M	212.26M	52.47M	146.00M	285.61M	197.40M
Operating Cash Flow	263.18M	217.67M	58.81M	156.65M	296.01M	213.92M
Investing Cash Flow	-20.41M	-7.00M	13.36M	15.30M	-68.35M	24.70M
Financing Cash Flow	-125.02M	-142.01M	-69.35M	-419.43M	-54.16M	-118.31M

Netscout Systems Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NTCT, the sentiment is Positive. The current price of 28.3 is above the 20-day moving average (MA) of 27.23, above the 50-day MA of 26.32, and above the 200-day MA of 23.47, indicating a bullish trend. The MACD of 0.73 indicates Negative momentum. The RSI at 58.35 is Neutral, neither overbought nor oversold. The STOCH value of 55.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NTCT.

Netscout Systems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATEN	77 Outperform	$1.24B	25.25	23.88%	1.37%	10.27%	3.52%
NTCT	75 Outperform	$2.07B	23.36	5.91%	―	9.60%	―
BOX	71 Outperform	$4.54B	25.66	163.44%	―	6.29%	62.03%
RDWR	65 Neutral	$989.47M	61.56	5.09%	―	10.40%	―
VRNT	62 Neutral	$1.23B	30.83	4.72%	―	-2.32%	7.70%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
FIVN	58 Neutral	$1.62B	57.11	4.67%	―	12.48%	―

Netscout Systems Corporate Events

NETSCOUT Raises Outlook After Strong Q2 Results

NETSCOUT SYSTEMS, INC. is a prominent provider of enterprise performance management, carrier service assurance, cybersecurity, and DDoS protection solutions, serving major enterprises, service providers, and public sector organizations worldwide.

Netscout Systems Approves Equity Plan Amendment

On September 10, 2025, NetScout Systems, Inc. held its annual meeting where stockholders approved an amendment to increase the number of shares in the company’s 2019 Equity Incentive Plan by 3.5 million. Additionally, stockholders elected four directors for three-year terms, approved executive compensation, and ratified PricewaterhouseCoopers LLP as the independent auditor for the fiscal year ending March 31, 2026.

The most recent analyst rating on (NTCT) stock is a Buy with a $33.00 price target. To see the full list of analyst forecasts on Netscout Systems stock, see the NTCT Stock Forecast page.

NETSCOUT’s Earnings Call Highlights Growth and Challenges

The latest earnings call from NETSCOUT painted a largely positive picture, with the company showcasing strong revenue and earnings growth. This optimistic outlook is primarily fueled by advancements in cybersecurity and new product enhancements. The company also highlighted successful customer acquisitions and a robust liquidity position. However, challenges such as a decline in service provider revenue and macroeconomic uncertainties were acknowledged.

NETSCOUT Reports Strong Start to Fiscal Year 2026

NETSCOUT SYSTEMS, INC., a prominent player in the enterprise performance management and cybersecurity sector, specializes in providing solutions for service assurance and DDoS protection. The company serves a diverse clientele, including large enterprises, service providers, and public sector organizations.