NetScout Systems, Inc.

netscout.com

What Do They Do?

Sells network performance and security tools and services to enterprises, service providers and government agencies.

How Do They Make Money?

Customers pay for maintenance and support over a contract term, often in quarterly or annual installments; hardware and software payments are generally due up front, and product sales are counted when delivered.

revenue

Segment	Share	Revenue	How money arrives
Product Sold outright	43% FY2023: 49%		Sold outright
Service Mix	57% FY2023: 51%		Mix

Who Are Their Customers?

Enterprises, service providers and government agencies buy network and security solutions directly from NetScout or through resellers and distributors; in most markets, its sales team leads sales, with channel partners participating in some international markets.

Do Revenues Turn Into Profits?

Yes. It kept 11 cents of every revenue dollar as net income in FY2026 and turned 33 cents into free cash flow.

Operating income, FY2026

13% of revenue

▲ Now profitable vs FY2025 (−$367.6M, −45%)

Net income, FY2026

11% of revenue

▲ Now profitable vs FY2025 (−$366.9M, −45%)

Free cash flow, FY2026

33% of revenue

▲ +34% vs FY2025 ($212.3M, 26%)

How Are They Changing?

Since the FY2026 annual report

Latest quarter: Q1 FY2026, the three months to Jun 30, 2026

Revenue: ▲ +13%; vs $186.7M in Q1 FY2025
Net income: ▲ Now profitable; vs −$3.7M in Q1 FY2025

Service share of revenue vs 60.9% in Q1 FY2025

Aug 6, 2026 Reaffirmed the fiscal 2027 outlook Revenue outlook remained $885.0 million to $915.0 million, with GAAP net income per diluted share of $1.55 to $1.70.
Jun 3, 2026 Changed independent auditor from PwC to KPMG KPMG was appointed for the fiscal year ending March 31, 2027; PwC's reports contained no adverse opinion or disclaimer.

Flat. Revenue was $859.5M in FY2026, about the same as the $855.6M of FY2022.

Third-party observability use The product story extends from exporting network data for service-provider analytics to streaming Smart Data into third-party observability platforms and automated and AI workflows.

Revenue over time

Product Service

$1B$500M$0

FY2022 FY2023 FY2024 FY2025 FY2026

Who Do They Compete With?

Competes with Cisco Systems, Dynatrace, Datadog, ExtraHop, IBM, Infovista, Viavi, Gigamon, New Relic, Riverbed Technology, SolarWinds, Anritsu, Ericsson, EXFO, Huawei, Nokia, Radware, Akamai, Fortinet, and Cloudflare

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