NetScout reported third quarter fiscal 2026 total revenue of 250.7 million, roughly flat compared with 252.0 million in the year-ago period. Product revenue declined to 121.7 million (49% of total), down from 128.2 million (51% of total) a year earlier, while service revenue rose to 129.0 million (51% of total), up from 123.8 million (49% of total). As of December 31, 2025, product backlog stood at 24.0 million, including 18.7 million of fulfillable orders, compared with 30.0 million and 21.8 million respectively at the end of last year’s third quarter.

On a GAAP basis, income from operations increased to 64.3 million, driving a 25.7% operating margin versus 24.5% in Q3 fiscal 2025. Non-GAAP operating income was 89.9 million, representing a 35.9% margin compared with 35.6% a year ago. Adjusted EBITDA reached 91.7 million, or 36.6% of revenue, marginally below last year’s 36.8% rate.

GAAP net income rose to 55.1 million, or 0.75 per diluted share, up from 48.8 million, or 0.67 per diluted share in the prior-year quarter. On a non-GAAP basis, net income increased to 73.7 million, or 1.00 per diluted share, compared with 68.3 million, or 0.94 per diluted share a year earlier.

As of December 31, 2025, the company held 586.2 million in cash, cash equivalents and marketable securities, up from 492.5 million at the end of March 2025, and carried zero drawn balance on its 600 million revolving credit facility. Based on year-to-date performance and an accelerating order pipeline, management raised the midpoint of fiscal year 2026 revenue guidance to a range of 835 million to 870 million, and now expects GAAP earnings per share of 1.15 to 1.23 and non-GAAP earnings per share of 2.37 to 2.45.