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Jun 30
NetScout Q1 2026 Earnings Report
NetScout reported its first quarter fiscal year 2026 financial results, showing growth in revenue and improved profitability compared to the previous year.
Key Takeaways
NETSCOUT delivered a solid start to fiscal year 2026, with Q1 performance reflecting strong execution and positive momentum across both top- and bottom-lines. The company saw increased total revenue, product revenue, and significant improvements in GAAP and non-GAAP operating income and net income compared to the prior year, largely due to the absence of the large goodwill impairment charge from the previous year. Growth in Cybersecurity and Service Assurance product lines supported these results.
Total revenue increased to $186.7 million in Q1 FY26, up from $174.6 million in Q1 FY25.
GAAP loss from operations significantly improved to $6.6 million from $463.3 million in the prior year, primarily due to the absence of a goodwill impairment charge.
Non-GAAP net income increased to $24.7 million, or $0.34 per share, compared to $20.6 million, or $0.28 per share, in Q1 FY25.
The company reaffirmed its financial outlook for fiscal year 2026, expecting revenue between $825 million and $865 million.
NetScout
NetScout
NetScout Revenue by Segment
Revenue by Segment
Product Revenue
CapyFin.comService Revenue
CapyFin.com Forward Guidance
NETSCOUT reaffirmed its financial outlook for fiscal year 2026, expecting revenue between $825 million and $865 million, and non-GAAP diluted net income per share between $2.25 and $2.40.
Positive Outlook
- Reaffirmed revenue expectations for FY26 in the range of $825 million to $865 million.
- Reaffirmed non-GAAP net income per share (diluted) in the range of $2.25 to $2.40 for FY26.
- The sale of a foreign investment is expected to have a relatively neutral impact on FY26 financial outlook.
- Continued focus on driving product innovation and enhancing margins through disciplined cost management.
- Commitment to empowering customers with mission-critical solutions for performance, availability, and security.
Challenges Ahead
- Ongoing macroeconomic uncertainty remains a cautious factor.
- No specific negative revisions to guidance were mentioned, but the 'cautiously optimistic' stance implies potential headwinds.
- The company is still focused on 'returning to annual revenue growth', indicating that consistent growth is not yet fully established.
- The forward guidance for GAAP net income per share is lower than non-GAAP, indicating continued adjustments.
- No specific negative factors were highlighted in the forward guidance section, beyond general macroeconomic uncertainty.
Revenue & Expenses
Visualization of income flow from segment revenue to net income