NetScout Systems (NTCT) Q4 2025 earnings summary

Executive summary

• Fiscal year 2025 revenue was $822.7 million, essentially flat year-over-year after adjusting for divestitures and prior year backlog benefits.

• Fourth quarter FY25 revenue reached $205 million, up 0.8% year-over-year, driven by strong cybersecurity product performance.

• Non-GAAP EPS for FY25 was $2.22, up 0.9% year-over-year, reflecting effective cost management.

• Leadership transitions announced: CEO, COO, and CFO retiring, with internal successors named and transitions planned for June 2025.

• Cybersecurity product line was a key growth driver in Q4 FY25.

Financial highlights

• Q4 FY25 revenue was $205 million, with product revenue at $89.5 million (44%) and service revenue at $115.5 million (56%).

• Q4 gross margin was 79.2% (+2 pts), operating margin 23.1% (up from 19.2%), and non-GAAP EPS $0.52 (down 5.5% year-over-year).

• FY25 gross margin was 80% (+0.6 pts), operating margin 23.7% (+1.1 pts), and annual tax rate 19%.

• Free cash flow for FY25 was $211 million; cash and investments at year-end totaled $492.5 million, with no long-term debt.

• FY25 non-GAAP net income was $160.4 million; GAAP net loss was $366.9 million due to a $427 million goodwill impairment.

Outlook and guidance

• FY26 revenue expected between $825 million and $865 million; non-GAAP EPS guidance is $2.25–$2.40.

• FY26 GAAP EPS guidance: $1.07–$1.22; annual tax rate projected at 20%; diluted shares outstanding 74–75 million.

• Q1 FY26 revenue and EPS expected to grow 3–5% year-over-year.

• Guidance incorporates macroeconomic, tariff, and restructuring uncertainties.

• Focus remains on cybersecurity growth, disciplined cost management, and innovation.