Netscout beats Q2 profit expectations on service revenue growth, cost control
NTCT•Netscout fiscal Q2 revenue rose 1.4% year over year to $222.19 million, while adjusted EPS of $0.71 beat analyst expectations. The company reaffirmed fiscal 2027 revenue guidance of $885 million to $915 million and expects GAAP EPS of $1.55 to $1.70.
1. Quarterly results
Fiscal Q2 revenue rose 1.4% year over year to $222.19 million, above the $218.77 million analyst consensus. Adjusted EPS was $0.71, beating the $0.66 consensus; adjusted net income was $52.80 million, and net income was $34.40 million.
2. Revenue and outlook
Higher service revenue offset lower product revenue. Netscout said lower product revenue and backlog compared with the prior year reflected the timing of government-related orders that had benefited the previous quarter, while ongoing cost control contributed to operating margin expansion. The company repurchased $77 million of stock during the quarter and reaffirmed fiscal 2027 revenue guidance of $885 million to $915 million; it expects GAAP EPS of $1.55 to $1.70 and non-GAAP EPS of $2.65 to $2.80.
