NetScout Systems, Inc. (NTCT) Income Statement

28Y historyFree accessUpdated daily

Revenue grew 12.7% in 2027Q1 to $210.4M with gross margin expanding to 78.9%, but operating margin fell to 6.9% from 25.7% in 2026Q3, reflecting cost growth outpacing gross profit.

Annual statement

NTCT Income Statement

NetScout Systems, Inc. (NTCT) annual income statement — 28-year revenue, gross profit & net income history

Annual Quarterly

Metric	TTM	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	883.16M	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 %	5.79%	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	189.23M	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	693.93M	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 %	78.57%	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	563.04M	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	367.74M	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	162.02M	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	3M	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	130.89M	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 %	14.82%	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	187.57M	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 %	21.24%	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 %	18.16%	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)	56.68M	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	141.56M	120.21M	-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	13.23M	12.13M	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	14.95M	13.83M	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	1.72M	1.71M	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	9.4M	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	140.29M	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 %	15.89%	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	19.25M	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 %	13.72%	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	121.05M	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 %	13.71%	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 %	66.33%	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)	121.05M	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	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	0
EPS (Diluted)	1.62	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 %	65.21%	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	74.6M	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	71.81M	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	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-

Key Metrics

Growth RegimeMixed

ProfitabilityStable

Balance SheetFortress

Cash FlowStable

Top Statement Risk

EPS miss and revenue pull-forward

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2027Q1)

Uneven Growth Amidst Mix Shift

NTCT's TTM revenue grew 4.5% year-over-year, but quarterly growth swung from -17.3% to +14.6%, reflecting lumpy product cycles and a shift toward recurring software revenue.

The most recent quarter (2027Q1) showed 12.7% YoY growth, a rebound from the -1.0% in 2026Q4, but this was partly attributed to government orders pulled forward, suggesting potential payback in subsequent quarters. The underlying trend appears to be a transition from hardware-heavy sales to software and services, which may dampen reported growth but improve revenue quality. Investors should monitor whether the company can sustain growth above the mid-single-digit range without relying on timing benefits.

Gross Margin Resilience, Operating Volatility

Gross margin expanded to 78.9% in 2027Q1 from 72.9% in 2026Q4, reflecting a favorable mix shift, but operating margin swung from 25.7% to 6.9% due to variable SG&A and R&D intensity.

The gross margin improvement suggests increasing software content and pricing power, but the operating margin volatility indicates that SG&A and R&D costs are not scaling proportionally with revenue. The 2026Q3 operating margin of 25.7% appears to be an outlier, likely benefiting from a high-margin product quarter, while the 2027Q1 margin of 6.9% was pressured by elevated SG&A (98.5M) and R&D (42.4M). This pattern implies that the company's cost structure is not well-leveraged, and margin expansion may be limited unless revenue growth accelerates.

Operating Leverage Elusive

Despite a 12.7% revenue increase in 2027Q1, operating income fell to $14.5M from $19.6M in 2026Q4, indicating that SG&A and R&D costs grew faster than gross profit, undermining operating leverage.

In 2027Q1, gross profit rose to $165.9M, but operating income was only $14.5M, a margin of 6.9%, versus 9.7% in 2026Q4. The increase in SG&A to $98.5M (from $88.6M) and R&D to $42.4M (from $39.8M) outpaced the gross profit growth, suggesting that the company is investing heavily in sales and product development. This may indicate a deliberate strategy to capture market share, but it also means that operating leverage is not yet evident. Investors should watch whether these investments translate into sustained revenue growth.

EPS Miss Masks Underlying Quality

NTCT reported diluted EPS of $0.29 in 2027Q1, missing estimates by $0.19, despite a 12.7% revenue increase, while stock-based compensation of $18.0M continued to weigh on reported earnings.

The EPS miss appears to be driven by higher operating expenses and possibly a lower tax benefit, as net income of $21.8M was only slightly above the prior quarter's $18.2M despite higher revenue. Stock-based compensation of $18.0M in 2027Q1 is significant relative to operating income of $14.5M, indicating that a large portion of reported earnings is non-cash. The company's maintained guidance suggests management views the miss as transitory, but the quality of earnings is questionable given the recurring SBC expense and the potential for revenue pull-forward to distort comparisons.

SG&A and R&D Outpacing Revenue

In 2027Q1, SG&A rose to $98.5M (46.8% of revenue) and R&D to $42.4M (20.2% of revenue), both up from the prior quarter, indicating that cost discipline is not keeping pace with revenue growth.

The combined SG&A and R&D expenses of $140.9M in 2027Q1 represent 67.0% of revenue, up from 63.3% in 2026Q4. This increase suggests that the company is investing heavily in sales capacity and product development, possibly to support new initiatives like the Omnis security platform. However, the lack of operating leverage is concerning, as revenue growth of 12.7% did not translate into proportional profit growth. Management's expense discipline will be critical to improving profitability, but the current trend suggests that costs are growing faster than revenue.

2025Q1 Impairment Distorts Trend

The 2025Q1 operating loss of $463.3M, driven by a massive impairment, skews historical comparisons, but subsequent quarters show a recovery to more normalized profitability, with 2026Q3 operating margin at 25.7%.

The 2025Q1 loss appears to be a one-time event, likely related to an impairment charge, as revenue was $174.6M and gross margin was 74.6%, yet operating income was -$463.3M. Excluding this outlier, the company's operating performance has been volatile but generally positive, with 2026Q3 being a standout quarter. This inflection highlights the importance of adjusting for non-recurring items when evaluating NTCT's earnings power. The lasting impact is that the company's reported results can be significantly distorted by one-time charges, making normalized earnings analysis essential.

What Could Undermine the Narrative

The 2027Q1 EPS miss of $0.52 versus $0.71 estimate, coupled with revenue growth partly from pulled-forward government orders, suggests that the company's growth may be less durable than headline numbers imply.

Short-sellers might argue that NTCT's modest organic growth (4.5% TTM) does not justify its valuation, especially if the recent revenue surge is not sustainable. The reliance on government orders that were received earlier than anticipated could create a difficult comparison in the next quarter, and the elevated SG&A and R&D costs may indicate that the company is spending heavily to defend its market position against cloud-native competitors. Additionally, the high stock-based compensation relative to operating income raises questions about the quality of reported earnings. If the company fails to convert its investments into sustained growth, the stock could face multiple compression.

NTCT — Frequently Asked Questions

Quick answers to the most common questions about buying NTCT stock.

What was NetScout Systems, Inc.'s (NTCT) revenue in 2026?

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.

Is NetScout Systems, Inc. (NTCT) profitable?

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%.

What is NetScout Systems, Inc.'s operating profit margin?

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.

What is NetScout Systems, Inc.'s gross profit and gross margin?

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.