NETSCOUT Posts $222M Fiscal Q2 Revenue, Reaffirms Full-Year Outlook

Westford, Massachusetts-based NETSCOUT Systems Inc. reported fiscal second-quarter revenue of $222.2 million on Thursday, up 1.4% from a year earlier, and reaffirmed its full-year fiscal 2027 outlook.

GAAP net income was $34.4 million, or $0.47 per diluted share, compared with $25.8 million, or $0.35, a year earlier, according to the company’s Form 8-K and earnings release furnished to the Securities and Exchange Commission. Non-GAAP net income was $52.8 million, or $0.71 per diluted share. Adjusted EBITDA was $66.5 million, or 29.9% of revenue.

Product sales slip as services climb

Product revenue fell 5.1% to $89.9 million, while service revenue rose 6.4% to $132.3 million and accounted for 60% of the total, the release said. Total product backlog stood at $20.9 million as of Sept. 30, including $15.4 million of fulfillable backlog, down from $39.8 million and $27.7 million a year earlier.

GAAP operating income was $37.6 million, or 16.9% of revenue, up from $32.5 million, or 14.8%, a year earlier. For the first six months of fiscal 2027, revenue rose 6.6% to $432.6 million and GAAP net income was $56.2 million, or $0.76 per diluted share.

Buybacks and cash

During the quarter NETSCOUT repurchased 2.0 million shares for about $77 million. Cash, cash equivalents and marketable securities totaled $571.3 million as of Sept. 30, with no debt outstanding under its $600 million revolving credit facility, the company said.

Full-year targets unchanged

Management reaffirmed fiscal 2027 guidance of revenue between $885 million and $915 million, GAAP diluted EPS of $1.55 to $1.70, and non-GAAP diluted EPS of $2.65 to $2.80. Investing.com reported the quarterly results beat consensus estimates for earnings and revenue.

Related: S&P 500 and Nasdaq sell-off Thursday.

Sources: NETSCOUT Form 8-K / Exhibit 99.1 via StockTitan, Investing.com