Revenue growth remains highly erratic, fluctuating between a 19.1% contraction in 2024Q3 and a 15.6% expansion in 2025Q3, despite maintaining resilient gross margins that peaked at 81.6% in 2026Q3.
| Metric | Mar'26 | Mar'25 | Mar'24 | Mar'23 | Mar'22 | Mar'21 | Mar'20 | Mar'19 | Mar'18 | Mar'17 | Mar'16 | Mar'15 | Mar'14 | Mar'13 | Mar'12 | Mar'11 | Mar'10 | Mar'09 | Mar'08 | Mar'07 | Mar'06 | Mar'05 | Mar'04 | Mar'03 | Mar'02 | Mar'01 | Mar'00 | Mar'99 |
|---|
| Sales/Revenue | 859.48M | 822.68M | 829.46M | 914.53M | 855.58M | 831.28M | 891.82M | 909.92M | 986.79M | 1.16B | 955.42M | 453.67M | 396.65M | 350.55M | 308.68M | 290.54M | 260.34M | 267.6M | 168.96M | 102.47M | 97.88M | 85.21M | 71.53M | 71.66M | 82.28M | 107.95M | 86.16M | 67.6M |
| Revenue Growth % | 4.47% | -0.82% | -9.3% | 6.89% | 2.92% | -6.79% | -1.99% | -7.79% | -15.09% | 21.63% | 110.6% | 14.38% | 13.15% | 13.56% | 6.24% | 11.6% | -2.71% | 58.39% | 64.88% | 4.7% | 14.86% | 19.12% | -0.17% | -12.91% | -23.78% | 25.29% | 27.45% | - |
| Cost of Goods Sold | 221.63M | 178.74M | 187.41M | 223.1M | 214.19M | 222.1M | 242.19M | 254.13M | 271.9M | 346.14M | 328.45M | 94.56M | 84.51M | 74.01M | 65.67M | 61.36M | 56.06M | 64.14M | 47.69M | 22.61M | 23.57M | 20.64M | 17.38M | 17.85M | 22.09M | 25.09M | 19.92M | 18.4M |
| COGS % of Revenue | 25.79% | 21.73% | 22.59% | 24.39% | 25.03% | 26.72% | 27.16% | 27.93% | 27.55% | 29.79% | 34.38% | 20.84% | 21.31% | 21.11% | 21.28% | 21.12% | 21.53% | 23.97% | 28.22% | 22.06% | 24.08% | 24.22% | 24.29% | 24.91% | 26.85% | 23.24% | 23.12% | 27.22% |
| Gross Profit | 637.85M | 643.94M | 642.04M | 691.43M | 641.39M | 609.18M | 649.63M | 655.79M | 714.88M | 815.97M | 626.97M | 359.11M | 312.13M | 276.54M | 243.01M | 229.18M | 204.28M | 203.47M | 121.27M | 79.86M | 74.31M | 64.58M | 54.16M | 53.81M | 60.19M | 82.86M | 66.24M | 49.2M |
| Gross Margin % | 74.21% | 78.27% | 77.41% | 75.61% | 74.97% | 73.28% | 72.84% | 72.07% | 72.45% | 70.21% | 65.62% | 79.16% | 78.69% | 78.89% | 78.72% | 78.88% | 78.47% | 76.03% | 71.78% | 77.94% | 75.92% | 75.78% | 75.71% | 75.09% | 73.15% | 76.76% | 76.88% | 72.78% |
| Gross Profit Growth % | -0.95% | 0.3% | -7.14% | 7.8% | 5.29% | -6.23% | -0.94% | -8.27% | -12.39% | 30.15% | 74.59% | 15.05% | 12.87% | 13.8% | 6.03% | 12.19% | 0.4% | 67.78% | 51.85% | 7.48% | 15.07% | 19.25% | 0.64% | -10.6% | -27.36% | 25.1% | 34.63% | - |
| Operating Expenses | 526.18M | 1.01B | 791.87M | 613.77M | 592.75M | 572.05M | 631.99M | 663.34M | 713.73M | 749.91M | 652.05M | 262.33M | 234.12M | 210.95M | 188.72M | 171.11M | 158.38M | 167.09M | 126.61M | 72.5M | 67.63M | 61.8M | 55.86M | 59.02M | 74.45M | 71.68M | 45.04M | 34.1M |
| OpEx % of Revenue | 61.22% | 122.96% | 95.47% | 67.11% | 69.28% | 68.82% | 70.87% | 72.9% | 72.33% | 64.53% | 68.25% | 57.83% | 59.02% | 60.18% | 61.14% | 58.9% | 60.83% | 62.44% | 74.94% | 70.75% | 69.1% | 72.52% | 78.09% | 82.36% | 90.48% | 66.4% | 52.27% | 50.44% |
| Selling, General & Admin | 366.75M | 364.77M | 366.87M | 380.42M | 361.88M | 331.7M | 376.52M | 385.44M | 422.01M | 447.07M | 411.05M | 183.74M | 160.23M | 146.53M | 137.11M | 128.58M | 119.67M | 124.94M | 95.8M | 54.02M | 49.34M | 45.01M | 40.89M | 40.83M | 44.12M | 48.37M | 32.58M | 24.5M |
| SG&A % of Revenue | 42.67% | 44.34% | 44.23% | 41.6% | 42.3% | 39.9% | 42.22% | 42.36% | 42.77% | 38.47% | 43.02% | 40.5% | 40.4% | 41.8% | 44.42% | 44.26% | 45.97% | 46.69% | 56.7% | 52.72% | 50.41% | 52.82% | 57.16% | 56.97% | 53.62% | 44.8% | 37.81% | 36.24% |
| Research & Development | 159.43M | 152.86M | 161.21M | 176.17M | 171.13M | 179.16M | 188.29M | 203.59M | 215.08M | 232.7M | 208.63M | 75.24M | 70.45M | 61.55M | 49.48M | 40.63M | 36.65M | 40.19M | 30M | 18.32M | 18.14M | 16.79M | 14.7M | 17.1M | 19.84M | 15.42M | 9.53M | 7.5M |
| R&D % of Revenue | 18.55% | 18.58% | 19.44% | 19.26% | 20% | 21.55% | 21.11% | 22.37% | 21.8% | 20.02% | 21.84% | 16.59% | 17.76% | 17.56% | 16.03% | 13.98% | 14.08% | 15.02% | 17.76% | 17.88% | 18.53% | 19.7% | 20.56% | 23.86% | 24.11% | 14.29% | 11.06% | 11.09% |
| Other Operating Expenses | 0 | 493.91M | 263.79M | 57.17M | 59.74M | 61.19M | 67.18M | -434K | -3.78M | -1.72M | -1.25M | -1.48M | 301K | -10K | -728K | 1.91M | 2.06M | 1.96M | 811K | 155K | 149K | 0 | 272K | 1.09M | 10.48M | 7.89M | 2.94M | 26.6M |
| Operating Income | 111.67M | -367.6M | -149.83M | 77.66M | 48.63M | 37.13M | 17.64M | -71.58M | -4.06M | 62.06M | -25.55M | 96.77M | 78.01M | 64.53M | 53.68M | 58.06M | 45.9M | 36.38M | -5.34M | 7.37M | 6.54M | 2.78M | -1.71M | -5.2M | -14.26M | 6.81M | 21.2M | 15.1M |
| Operating Margin % | 12.99% | -44.68% | -18.06% | 8.49% | 5.68% | 4.47% | 1.98% | -7.87% | -0.41% | 5.34% | -2.67% | 21.33% | 19.67% | 18.41% | 17.39% | 19.99% | 17.63% | 13.59% | -3.16% | 7.19% | 6.68% | 3.26% | -2.38% | -7.26% | -17.33% | 6.31% | 24.61% | 22.34% |
| Operating Income Growth % | 130.38% | -145.35% | -292.92% | 59.69% | 30.98% | 110.51% | 124.64% | -1663.92% | -106.54% | 342.91% | -126.4% | 24.05% | 20.9% | 20.2% | -7.55% | 26.5% | 26.18% | 780.98% | -172.5% | 12.73% | 135.11% | 262.95% | 67.22% | 63.5% | -309.35% | -67.88% | 40.4% | - |
| EBITDA | 168.2M | -303.82M | -74.84M | 173.01M | 144.42M | 142.96M | 133.74M | 64.18M | 147.6M | 222.93M | 114.52M | 100.12M | 81.45M | 67.41M | 55.81M | 59.97M | 47.96M | 50.18M | 3.78M | 11.06M | 10.18M | 6.16M | 2.17M | -309K | 683K | 18.8M | 24.14M | 17.2M |
| EBITDA Margin % | 19.57% | -36.93% | -9.02% | 18.92% | 16.88% | 17.2% | 15% | 7.05% | 14.96% | 19.18% | 11.99% | 22.07% | 20.53% | 19.23% | 18.08% | 20.64% | 18.42% | 18.75% | 2.24% | 10.8% | 10.4% | 7.23% | 3.03% | -0.43% | 0.83% | 17.42% | 28.01% | 25.44% |
| EBITDA Growth % | 155.36% | -305.95% | -143.26% | 19.8% | 1.02% | 6.89% | 108.37% | -56.51% | -33.79% | 94.66% | 14.38% | 22.93% | 20.83% | 20.77% | -6.93% | 25.05% | -4.43% | 1227.24% | -65.83% | 8.73% | 65.17% | 184.05% | 801.94% | -145.24% | -96.37% | -22.1% | 40.33% | - |
| D&A (Non-Cash Add-back) | 56.53M | 63.79M | 74.99M | 95.35M | 95.78M | 105.83M | 116.1M | 135.76M | 151.66M | 160.86M | 140.07M | 3.35M | 3.43M | 2.88M | 2.13M | 1.91M | 2.06M | 13.8M | 9.12M | 3.7M | 3.64M | 3.38M | 3.88M | 4.89M | 14.94M | 11.99M | 2.94M | 2.1M |
| EBIT | 111.67M | -358.63M | -135.86M | 78.66M | 50.94M | 33.18M | 22.52M | -66.77M | -6.03M | 61.37M | -26.11M | 96.79M | 78.01M | 65.03M | 52.68M | 58.74M | 46.53M | 37.33M | -5.34M | 7.37M | 6.68M | 2.77M | -1.72M | -5.2M | -14.26M | 11.18M | 21.2M | 15.1M |
| Net Interest Income | 8.68M | 3.58M | 951K | -5.33M | -7.75M | -10.23M | -16.07M | -20.9M | -10.82M | -8.16M | -5.64M | -328K | -459K | -783K | -1.35M | -1.78M | -2.82M | -4.26M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 8.68M | 10.74M | 9.6M | 4.92M | 297K | 646K | 4.53M | 5.25M | 1.81M | 1.02M | 691K | 445K | 309K | 508K | 419K | 672K | 644K | 2.03M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 7.16M | 8.65M | 10.25M | 8.05M | 10.88M | 20.6M | 26.14M | 12.63M | 9.18M | 6.33M | 773K | 768K | 1.29M | 2.77M | 1.77M | 3.46M | 6.29M | 0 | 0 | 2.63M | 1.04M | 694K | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 6.84M | 1.81M | 5.32M | -9.25M | -5.74M | -14.83M | -15.71M | -21.33M | -14.6M | -9.88M | -6.89M | -1.81M | -158K | -793K | -2.77M | -1.77M | -2.83M | -5.34M | -1.21M | 3.9M | 2.63M | 1.04M | 694K | 1.15M | 1.92M | 3.92M | 2.55M | 900K |
| Pretax Income | 118.51M | -365.79M | -144.51M | 68.42M | 42.89M | 22.3M | 1.92M | -92.91M | -18.66M | 52.19M | -32.44M | 94.97M | 77.86M | 63.74M | 50.92M | 56.29M | 43.07M | 31.04M | -6.55M | 11.27M | 9.16M | 3.82M | -1.01M | -4.06M | -12.34M | 10.73M | 23.75M | 16M |
| Pretax Margin % | 13.79% | -44.46% | -17.42% | 7.48% | 5.01% | 2.68% | 0.22% | -10.21% | -1.89% | 4.49% | -3.4% | 20.93% | 19.63% | 18.18% | 16.5% | 19.38% | 16.54% | 11.6% | -3.88% | 10.99% | 9.36% | 4.48% | -1.41% | -5.66% | -14.99% | 9.94% | 27.57% | 23.67% |
| Income Tax | 22.98M | 1.13M | 3.22M | 8.77M | 7.02M | 2.95M | 4.68M | -19.59M | -98.47M | 18.89M | -4.07M | 33.77M | 28.75M | 23.13M | 18.49M | 19.03M | 15.15M | 10.99M | -4.46M | 3.6M | 3.37M | 949K | -467K | -1.52M | -927K | 7.03M | 8.54M | 5.7M |
| Effective Tax Rate % | 19.39% | -0.31% | -2.23% | 12.81% | 16.36% | 13.24% | 243.14% | 21.08% | 527.74% | 36.21% | 12.55% | 35.56% | 36.93% | 36.29% | 36.31% | 33.8% | 35.18% | 35.41% | 68.12% | 31.94% | 36.73% | 24.85% | 46.15% | 37.45% | 7.51% | 65.47% | 35.95% | 35.63% |
| Net Income | 95.53M | -366.92M | -147.73M | 59.65M | 35.87M | 19.35M | -2.75M | -73.32M | 79.81M | 33.29M | -28.37M | 61.19M | 49.11M | 40.61M | 32.43M | 37.27M | 27.92M | 20.05M | -2.09M | 7.74M | 5.8M | 2.87M | -545K | -2.54M | -11.41M | 3.71M | 15.21M | 10.3M |
| Net Margin % | 11.12% | -44.6% | -17.81% | 6.52% | 4.19% | 2.33% | -0.31% | -8.06% | 8.09% | 2.86% | -2.97% | 13.49% | 12.38% | 11.58% | 10.51% | 12.83% | 10.72% | 7.49% | -1.24% | 7.55% | 5.92% | 3.37% | -0.76% | -3.54% | -13.87% | 3.43% | 17.66% | 15.24% |
| Net Income Growth % | 126.04% | -148.37% | -347.68% | 66.27% | 85.38% | 802.69% | 96.24% | -191.87% | 139.74% | 217.35% | -146.36% | 24.61% | 20.92% | 25.23% | -12.98% | 33.48% | 39.25% | 1060.15% | -126.99% | 33.47% | 101.99% | 626.61% | 78.53% | 77.75% | -407.91% | -75.64% | 47.69% | - |
| Net Income (Continuing) | 95.53M | -366.92M | -147.73M | 59.65M | 35.87M | 19.35M | -2.75M | -73.32M | 79.81M | 33.29M | -28.37M | 61.19M | 49.11M | 40.61M | 32.43M | 37.27M | 27.92M | 20.05M | -2.09M | 7.67M | 5.8M | 2.87M | -545K | -2.54M | -11.41M | 3.71M | 15.21M | 10.3M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.30 | -5.06 | -2.07 | 0.82 | 0.48 | 0.26 | -0.04 | -0.93 | 0.90 | 0.36 | -0.35 | 1.47 | 1.17 | 0.96 | 0.76 | 0.87 | 0.67 | 0.49 | -0.06 | 0.23 | 0.18 | 0.09 | -0.02 | -0.08 | -0.39 | 0.12 | 0.56 | 0.43 |
| EPS Growth % | 125.69% | -144.44% | -352.44% | 70.83% | 84.62% | 810.38% | 96.06% | -203.33% | 150% | 202.86% | -123.81% | 25.64% | 21.88% | 26.32% | -12.64% | 29.85% | 36.73% | 919.4% | -126% | 27.78% | 97.59% | 603.31% | 78.68% | 78.23% | -425% | -78.57% | 30.23% | - |
| EPS (Basic) | 1.33 | -5.11 | -2.07 | 0.83 | 0.48 | 0.26 | -0.04 | -0.93 | 0.91 | 0.36 | -0.35 | 1.49 | 1.19 | 0.97 | 0.77 | 0.89 | 0.69 | 0.51 | -0.06 | 0.24 | 0.19 | 0.09 | -0.02 | -0.08 | -0.39 | 0.13 | 0.70 | 0.55 |
| Diluted Shares Outstanding | 71.73M | 72.57M | 71.47M | 73.05M | 75.08M | 73.82M | 75.16M | 78.62M | 88.26M | 92.92M | 81.93M | 41.64M | 41.95M | 42.32M | 42.75M | 42.97M | 41.91M | 40.92M | 34.91M | 33.05M | 31.89M | 31.52M | 30.16M | 29.9M | 29.53M | 29.73M | 26.95M | 23.95M |
| Basic Shares Outstanding | 71.73M | 71.74M | 71.47M | 71.78M | 74.02M | 73.1M | 75.16M | 78.62M | 87.42M | 92.23M | 81.05M | 41.1M | 41.37M | 41.66M | 42.03M | 42.06M | 40.69M | 39.35M | 34.91M | 31.71M | 31.04M | 30.57M | 30.16M | 29.9M | 29.53M | 28.49M | 21.75M | 18.73M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Cyclical Carrier Capex Exposure
According to the provided quarterly income statements, NTCT's revenue trajectory exhibits significant lumpiness, with year-over-year growth rates fluctuating between a 19.1% contraction in 2024Q3 and a 15.6% expansion in 2025Q3, suggesting that the company's reliance on large-scale carrier procurement cycles creates unpredictable top-line performance.
The inconsistency in revenue growth appears to be driven by the timing of large-scale product refreshes and the transition toward a software-centric model. Investors should monitor whether the recent 1.0% revenue decline in 2026Q4 represents a structural slowdown or merely a temporary pause in the carrier capital expenditure cycle.
As reported in financial statements, NTCT has maintained robust gross margins that frequently exceed 75%, peaking at 81.6% in 2026Q3, which indicates that the company retains significant pricing power despite the inherent volatility in its hardware-heavy product revenue segments and shifting service provider demand.
The ability to sustain high gross margins suggests that the company's proprietary Adaptive Service Intelligence technology remains a critical, high-value component for its customers. However, the periodic compression of these margins warrants further investigation into the specific mix of hardware versus software revenue recognized in those periods.
Based on the income statement data, NTCT struggles to demonstrate consistent operating leverage, as SG&A expenses often remain elevated relative to gross profit, leading to operating margins that swung from a negative 61.7% in 2024Q3 to a positive 25.7% in 2026Q3, reflecting significant operational inefficiency.
The high fixed-cost structure, particularly in R&D and SG&A, appears to prevent the company from scaling profitability effectively during periods of revenue growth. This suggests that management may be prioritizing long-term product development and market presence over immediate bottom-line expansion, which may frustrate investors seeking margin improvement.
Analysis of the reported figures reveals that stock-based compensation, which reached $20.0 million in 2026Q1, frequently creates a meaningful wedge between GAAP net income and operational performance, complicating the assessment of true underlying profitability and shareholder dilution for institutional investors monitoring the company's bottom line.
The presence of significant non-operating charges and stock-based compensation suggests that GAAP earnings may not fully reflect the company's cash-generating capabilities. Investors should be cautious of the volatility in EPS, which appears heavily influenced by these non-cash items and periodic large-scale accounting adjustments.
Based on the provided financial data, short-sellers may focus on the company's inability to achieve consistent organic growth, as evidenced by the 1.0% revenue decline in 2026Q4, which may indicate that NTCT's core service assurance business is facing long-term obsolescence from cloud-native monitoring alternatives.
The reliance on legacy carrier infrastructure spending poses a significant risk if the transition to virtualized environments accelerates faster than the company can adapt its product suite. The lack of consistent profitability growth suggests that the market's current valuation may be overly optimistic regarding the company's long-term terminal value.
Quick answers to the most common questions about buying NTCT stock.
For fiscal year 2026, NetScout Systems, Inc. (NTCT) reported total revenue of $859.5M. This represents a 1171.4% increase compared to $67.6M in 1999.
NetScout Systems, Inc. (NTCT) is profitable, generating $95.5M in net income for the fiscal year ending 2026 with a net profit margin of 11.1%.
NetScout Systems, Inc. (NTCT) reported an operating income of $111.7M, resulting in an operating profit margin of 13.0%. This margin reflects the operational efficiency of the business before interest and taxes.
NetScout Systems, Inc. (NTCT) generated $637.9M in gross profit for the year, representing a gross profit margin of 74.2%. This demonstrates the company's core pricing power and production efficiency.