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Sep 30
NetScout Q2 2026 Earnings Report
NetScout reported its second quarter fiscal year 2026 financial results, exceeding top and bottom-line expectations and raising its fiscal year outlook.
Key Takeaways
NETSCOUT delivered a strong second quarter in fiscal year 2026, with total revenue increasing to $219.0 million, up from $191.1 million in the prior year. The company saw growth in both its Cybersecurity and Service Assurance product lines, leading to significant improvements in GAAP and non-GAAP income from operations and net income. This strong performance led to an upward revision of the full fiscal year outlook for revenue and earnings per share.
Total revenue for Q2 FY26 increased to $219.0 million, a significant rise from $191.1 million in Q2 FY25.
GAAP income from operations grew to $32.5 million, with a GAAP operating margin of 14.8%, compared to $14.1 million and 7.4% in the prior year.
Non-GAAP net income reached $45.1 million, or $0.62 per diluted share, up from $33.6 million, or $0.47 per diluted share, in Q2 FY25.
The company raised its fiscal year 2026 outlook for revenue and both GAAP and non-GAAP net income per share due to strong first-half performance.
NetScout
NetScout
NetScout Revenue by Segment
Revenue by Segment
Product Revenue
CapyFin.comService Revenue
CapyFin.com Forward Guidance
NETSCOUT is raising its fiscal year 2026 financial outlook, with expected revenue between $830 million and $870 million, GAAP net income per share between $1.13 and $1.23, and non-GAAP net income per share between $2.35 and $2.45.
Positive Outlook
- Revenue outlook for FY26 raised to $830 million to $870 million, up from the previous range of $825 million to $865 million.
- GAAP net income per share (diluted) outlook raised to $1.13 to $1.23, from the previous range of $1.07 to $1.22.
- Non-GAAP net income per share (diluted) outlook raised to $2.35 to $2.45, from the previous range of $2.25 to $2.40.
- Strong first-half performance provides confidence in achieving the raised full-year targets.
- Continued strategic initiatives, including AI-driven product innovation, are expected to drive future growth.
Challenges Ahead
- Uncertainties in the macroeconomic environment could impact future performance.
- The volatile foreign exchange environment poses a risk.
- Dependence on broad-based acceptance of the company’s network performance management solutions.
- Presence of competitors with greater financial resources and their strategic response.
- Potential for lower than expected demand for products and services.
Revenue & Expenses
Visualization of income flow from segment revenue to net income