Netscout Systems (NTCT) Q2 FY2027 earnings: revenue $222 million, up 1.4% on the year

Netscout Systems Inc. (NTCT) reported revenue of $222 million for Q2 FY2027, the quarter ended 30 September 2026, up 1.4% on the same quarter a year earlier. Net income was $34 million, up 33.1% on the year, and diluted earnings per share $0.47. The figures are the company's own, from the 10-Q it filed with the SEC on 5 November 2026.

Revenue

$222 million

+1.4% on the year · +5.6% on the quarter

Q3 FY2025Q2 FY2027

Operating margin

16.9%

14.8% a year earlier

Q3 FY2025Q2 FY2027

Net income

$34 million

+33.1% on the year · +57.5% on the quarter

Q3 FY2025Q2 FY2027

Diluted EPS

$0.47

+34.3% on the year · +62.1% on the quarter

Q3 FY2025Q2 FY2027

this quarterthe same quarter a year earlierHover a bar for its figure.

What management said

Guidance figures: 9 kept.

Revenue rose 1.4% in quarter: Second-quarter total revenue was $222.2 million, up from $219.0 million a year earlier, with service revenue growth offsetting lower product revenue.
Non-GAAP operating margin rose to 28.3%: Non-GAAP income from operations was $62.9 million, compared with $58.1 million a year earlier; margin rose from 26.5%.
Product revenue fell 5.1%: Product revenue fell to 40% of total revenue from 43% a year earlier.

Read the earnings call summary

Income statement (profit and loss)

$ million	Q2 FY2027	Q1 FY2027	Q2 FY2026	On the quarter	On the year
Revenue	222	210	219	+5.6%	+1.4%
Cost of revenue	45.5	44.5	43.6	+2.3%	+4.4%
Gross profit	177	166	175	+6.5%	+0.7%
Gross margin	79.5%	78.9%	80.1%
Research and development	39.0	42.4	40.3	-8.0%	-3.2%
Operating income	37.6	14.5	32.5	+159.7%	+15.7%
Operating margin	16.9%	6.9%	14.8%
Interest expense	0.4	0.4	0.4	-2.1%	+0.2%
Pre-tax income	40.7	19.0	31.4	+114.6%	+29.6%
Income tax	6.3	-2.9	5.6		+13.3%
Effective tax rate	15.5%	-15.2%	17.7%
Net income	34.4	21.8	25.8	+57.5%	+33.1%
Net margin	15.5%	10.4%	11.8%
Diluted EPS	$0.47	$0.29	$0.35	+62.1%	+34.3%

$ million except per share.

Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ million	Q2 FY2027	Q1 FY2027	Q2 FY2026	On the quarter	On the year
Operating cash flow	-15.1	50.8	6.7
Capital expenditure	0.6	3.5	2.2	-81.6%	-71.2%
Free cash flow	-15.8	47.3	4.4
Free cash flow margin	-7.1%	22.5%	2.0%
Cash from investing	-20.3	-57.9	4.7
Cash from financing	-79.3	-25.3	-18.0
Depreciation and amortisation	15.0	14.4	14.4	+4.1%	+4.7%
Share-based compensation	13.9	18.0	13.6	-22.8%	+2.3%
Buybacks	77.0	0.0	16.6		+365.1%
Diluted shares, weighted	74m	75m	73m	-0.9%	+1.4%
Shares outstanding at period end	71m	73m	72m	-2.3%	-1.6%

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet

$ million	Q2 FY2027	Q1 FY2027	Q2 FY2026	On the quarter	On the year
Shareholders' equity	1,637	1,663	1,574	-1.6%	+4.0%
Debt	0.0	0.0	0.0
Operating lease liabilities	25.3	29.1	33.5	-13.3%	-24.6%
Other liabilities	614	619	569	-0.8%	+7.8%
Total liabilities and equity	2,276	2,311	2,176	-1.5%	+4.6%
Fixed assets	27.3	26.2	21.3	+4.2%	+28.1%
Goodwill	1,096	1,097	1,070	-0.0%	+2.5%
Intangible assets	215	227	238	-5.0%	-9.7%
Investments	54.5	39.1	10.0	+39.6%	+443.2%
Cash and equivalents	438	553	483	-20.7%	-9.3%
Receivables	137	80.0	130	+71.7%	+5.5%
Inventory	30.0	20.9	12.4	+43.5%	+142.3%
Other assets	277	269	211	+3.0%	+31.1%
Total assets	2,276	2,311	2,176	-1.5%	+4.6%

Questions

What was Netscout Systems' revenue in Q2 FY2027?

Netscout Systems (NTCT) reported revenue of $222 million for Q2 FY2027, the quarter ended 30 September 2026, up 1.4% on the same quarter a year earlier.

How much did Netscout Systems earn in Q2 FY2027?

Net income for Q2 FY2027 was $34 million, up 33.1% on the year, and diluted earnings per share $0.47.

When did Netscout Systems report Q2 FY2027 results?

Netscout Systems filed its 10-Q for the quarter ended 30 September 2026 with the SEC on 5 November 2026.

Quarterly results, the last 20 quarters

	Q3 FY2022	Q4 FY2022 *	Q1 FY2023	Q2 FY2023	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026	Q3 FY2026	Q4 FY2026 *	Q1 FY2027	Q2 FY2027
Revenue	262	191	209	228	270	208	211	197	218	203	175	191	252	205	187	219	251	203	210	222
Cost of revenue	60.5	47.7	57.7	57.6	56.8	50.9	50.4	43.1	43.6	50.3	44.4	42.1	46.6	45.7	43.4	43.6	46.0	43.9	44.5	45.5
Gross profit	202	144	151	170	213	157	161	154	174	153	130	149	205	159	143	175	205	159	166	177
Gross margin	77%	75%	72%	75%	79%	76%	76%	78%	80%	75%	75%	78%	82%	78%	77%	80%	82%	78%	79%	80%
R&D	41.6	42.2	43.5	43.9	42.6	46.2	45.5	35.1	37.0	43.6	42.5	35.9	37.8	36.7	39.8	40.3	39.6	39.8	42.4	39.0
Operating income	55.5	-8.3	-9.1	21.4	63.8	1.6	-4.7	26.3	-134	-37.0	-463	14.1	61.7	19.9	-6.6	32.5	64.3	19.6	14.5	37.6
Operating margin	21%	-4%	-4%	9%	24%	1%	-2%	13%	-62%	-18%	-265%	7%	24%	10%	-4%	15%	26%	10%	7%	17%
Interest expense	1.7	1.7	1.9	2.2	2.9	3.2	2.1	2.2	2.2	2.2	1.9	1.8	2.6	0.8	0.4	0.4	0.5	0.4	0.4	0.4
Pre-tax income	55.6	-9.5	-10.5	19.4	60.6	-1.1	-5.3	27.5	-134	-32.9	-454	12.3	57.4	18.2	-2.8	31.4	66.6	23.3	19.0	40.7
Tax rate	14%	n/a	n/a	10%	13%	n/a	n/a	22%	n/a	n/a	n/a	27%	15%	-2%	n/a	18%	17%	22%	-15%	15%
Net income	47.7	-8.4	-7.1	17.4	52.6	-3.2	-4.2	21.5	-133	-32.4	-443	9.0	48.8	18.6	-3.7	25.8	55.1	18.2	21.8	34.4
Net margin	18%	-4%	-3%	8%	20%	-2%	-2%	11%	-61%	-16%	-254%	5%	19%	9%	-2%	12%	22%	9%	10%	15%
Diluted EPS	$0.64	-$0.12	-$0.10	$0.24	$0.72	-$0.04	-$0.06	$0.29	-$1.87	-$0.46	-$6.20	$0.13	$0.67	$0.25	-$0.05	$0.35	$0.75	$0.25	$0.29	$0.47
Operating cash flow	93.0	156	-12.5	10.1	46.3	113	-22.4	-26.4	14.0	93.6	38.4	-3.7	41.5	142	73.6	6.7	62.1	152	50.8	-15.1
Capital expenditure	2.7	3.3	2.2	3.0	3.2	2.1	2.0	1.5	1.2	1.6	1.3	0.9	1.9	1.4	1.9	2.2	2.8	2.2	3.5	0.6
Free cash flow	90.3	152	-14.7	7.1	43.1	111	-24.3	-27.9	12.7	92.0	37.2	-4.6	39.6	140	71.7	4.4	59.3	150	47.3	-15.8
Buybacks	11.2	0.0	150	0.0	0.0	0.0	0.0	31.1	18.9	0.0	25.0	0.3	0.0	0.0	15.0	16.6	0.0	29.2	0.0	77.0
Shares outstanding	74m	74m	71m	72m	71m	71m	72m	72m	71m	71m	71m	72m	72m	72m	73m	72m	72m	72m	73m	71m
Filing	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS, and its diluted share count where shown, are from the company's results press release for that quarter, checked against the company's filed figures or a second data source. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

10-Q for the period ended 30 September 2026, filed 5 November 2026: the filing.