NetScout Systems Inc (FRA:NSZ)

Q1 2027 Netscout Systems Inc Earnings Call Transcript

Aug 6, 2026 / 12:30 PM GMT

Release Date Price: €35.09 (-3.47%)

Transcript 10-Q8-K

Key Points

Positve

NetScout Systems Inc (NTCT) delivered strong first-quarter results with total revenue increasing 13% year-over-year to $210 million, exceeding expectations.
The company expanded both gross and operating margins significantly, with operating margin improving 660 basis points to 20.8%.
Service assurance revenue grew approximately 20% year-over-year, driven by government-related orders and strong demand for new innovations like Omnisensor and streamer products.
NetScout Systems Inc (NTCT) reached a significant milestone with the granting of its 750th patent, demonstrating the strength of its R&D engine and technology moat.
The company successfully doubled its DDoS mitigation capability to 33 terabits per second through the recent acquisition and capacity expansion, positioning it for growth in cybersecurity.
NetScout Systems Inc (NTCT) generated solid free cash flow of $44.3 million in the first quarter and reaffirmed its full-year fiscal 2027 outlook.

Negative

Cybersecurity revenue growth was modest at approximately 1% year-over-year, facing a difficult comparison to the prior year's high-teens growth.
The first quarter benefited from approximately $10 million to $15 million of government-related orders pulled forward, which will create a challenging comparison for the second quarter.
NetScout Systems Inc (NTCT) expects second-quarter revenue to be broadly consistent with the prior year period due to the acceleration of orders into Q1 and a strong prior-year comparison.
The company is experiencing supply chain challenges and increasing prices for equipment due to AI data center buildouts, requiring proactive inventory management.
Customers remain disciplined in their overall spending, and AI-related projects are still in the experimentation phase, which could lengthen sales cycles.
Rest of World revenue declined in the quarter, though management attributes this to timing of deals rather than a broader trend.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

NTCT.OQ - NetScout Systems, Inc.
Q1 2027 Netscout Systems Inc Earnings Call
Aug 06, 2026 / 12:30PM GMT

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Presentation
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Unidentified_1 [1]
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Ladies and gentlemen, thank you for standing by and welcome to NETSCOUT's first quarter Fiscal Year 2027 Financial Results Conference Call.

At this time, all parties are in a listen-only mode.

A question-and-answer session will follow the management team's prepared remarks.

As a reminder, this call is being recorded.

If you require operator assistance at any time, please press *0. I would now like to turn the call over to Scott Dressel, NETSCout's VP of Corporate Finance. Scott, please go ahead.

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Unidentified_2 [2]
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