Highlights

  • First quarter fiscal 2027 revenue was $210,423 thousand, compared with $186,747 thousand, and GAAP diluted net income per share was $0.29.
  • GAAP net income was $21,835 thousand, compared with a net loss of $3,679 thousand in the same quarter a year earlier.
  • NetScout acquired DigiCert's DDoS protection business for $55.0 million on May 1, 2026, with approximately $20 million of annualized revenue expected.
  • Management reaffirmed fiscal 2027 revenue of $885 million to $915 million and non-GAAP earnings per share of $2.65 to $2.80.

NetScout Systems, Inc. (NASDAQ: NTCT) shares were trading at USD 40.66 on October 27, 2026, down 0.26%, with a relative volume at time of 2.20. The network observability and cybersecurity company acquired DigiCert's DDoS protection business on May 1, 2026, filed its Form 10-Q for the first quarter of fiscal year 2027 on August 6, 2026, and reaffirmed its fiscal 2027 outlook on an August 13, 2026 earnings call.

NetScout is incorporated in Delaware and has its principal executive offices in Westford, Massachusetts. It provides enterprise network observability, carrier service assurance, AIOps, cybersecurity and DDoS protection solutions, built on its deep packet inspection technology. The company says it has more than four decades of experience, and its solutions are used by many Fortune 500 companies. It serves service providers and enterprises, including local, state and federal government agencies. Its fiscal year ends March 31.

First Quarter Fiscal 2027 Results

For the three months ended June 30, 2026, total revenue was $210,423 thousand, compared with $186,747 thousand a year earlier. The filing says revenue increased $23.7 million, or 13%, with increases in both product and service revenue. U.S. revenue increased 24%, and international revenue decreased 1%.

GAAP gross profit was $165,933 thousand, compared with $143,325 thousand, and the gross profit percentage was 79%. GAAP income from operations was $14,477 thousand, compared with a loss from operations of $6,564 thousand. Net income was $21,835 thousand, compared with a net loss of $3,679 thousand, and diluted net income per share was $0.29, compared with a net loss per share of $0.05.

The company cited the revenue increase and a $3.7 million increase in tax benefit, partly offset by an $11.8 million increase in employee-related expenses, primarily variable incentive compensation.

On a non-GAAP basis, income from operations was $43,719 thousand, net income was $38,560 thousand, and diluted net income per share was $0.52. Adjusted EBITDA was $46,905 thousand, compared with $29,340 thousand.

On the call, management said product revenue was $86 million and service revenue was $124.4 million. It said the quarter benefited in part from government-related orders of $10 million to $15 million that were pulled into the first quarter.

Balance Sheet, Cash Flow and Capital

Cash, cash equivalents, marketable securities and investments, current and non-current, were $668.5 million at June 30, 2026, a decrease of $36.7 million from $705.1 million at March 31, 2026. The company cited $55.0 million used in the DigiCert acquisition and $25.3 million used for tax withholdings on restricted stock units, partly offset by $50.8 million of net cash provided by operations.

The company had $600 million available under its revolving credit facility based on covenant levels at June 30, 2026. It did not repurchase shares during the quarter, and approximately 20.5 million shares remained available under its repurchase program.

Acquisition and Operations

The DigiCert DDoS protection business was acquired for $55.0 million in cash under an Asset Purchase Agreement. The filing says the acquisition is expected to contribute approximately $20 million in annualized revenue and that the acquired assets did not contribute material revenue or net income through June 30, 2026. It also notes AI-related supply-chain dynamics that could influence the timing and size of certain customer orders.

Fiscal 2027 Outlook

On the call, management reaffirmed its full fiscal year 2027 outlook, including revenue of $885 million to $915 million and non-GAAP earnings per share of $2.65 to $2.80. It assumes a non-GAAP effective tax rate of approximately 20% and weighted average diluted shares outstanding of approximately 74 million to 75 million. For the second quarter, management expects revenue to be broadly consistent with the prior-year period and expects first-half revenue growth in the mid-single-digits. It expects second quarter earnings per share to grow in the high-single-digits.