| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 61 | 23.1x | 17.8x | Around median | |
Growth | 56 | 5.8% | 7.1% | Around median | |
Quality | 82 | 6.7% | 4.5% | Top tier | |
Safety | 92 | — | 2.6x | Top tier | |
Capital Return | 80 | — | 2.12% | Top tier | |
Momentum | 86 | 77.3% | 2.9% | Top tier | |
Sentiment | 33 | 2 | 3 | Bottom tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
NetScout Systems provides enterprises and service providers with solutions for service assurance, network monitoring, cybersecurity, and DDoS protection. Its solutions rely on the Smart Data platform, which extracts precise packet-level data for use in analytics, automation, and AIOps, and its portfolio includes Omnis Sensor, Omnis Streamer, Omnis KlearSight Sensor, Arbor Cloud, and 5G network monitoring solutions. In Q1 fiscal 2027, service assurance accounted for 67% of revenue and cybersecurity for 33%, while enterprises represented 63% of revenue and service providers 37%.
In Q1 fiscal 2027, ended June 30, 2026, revenue increased 12.7% to $210.4 million, including $86 million from products, up 17.8%, and $124.4 million from services, up 9.4%. Service assurance grew 19.7%, compared with just 0.6% growth in cybersecurity, while enterprise revenue rose 19.1% and service provider revenue increased 3.3%. No customer represented more than 10% of quarterly revenue, and the United States contributed 59%, compared with 41% from international markets.
On a non-GAAP basis, gross margin increased 190 basis points to 80.6%, and operating margin improved 660 basis points to 20.8%. Non-GAAP net income was $38.6 million, or $0.52 per diluted share, compared with $24.7 million and $0.34 a year earlier. The company ended the quarter with free cash flow of $44.3 million and cash, cash equivalents, and marketable securities of $668.5 million.
Automated analysis for informational purposes only — not investment advice.
The average analyst price target is $43, below the 52-week range high of $45.28, while the range low is $24.27; the highest and lowest targets are also identical at $43, indicating no useful dispersion among the available analyst estimates. The consensus remains "Neutral" despite the improvement in operating margin and earnings per share in Q1 fiscal 2027, a stance consistent with the need to balance operating growth against the effect of accelerated government orders and slow cybersecurity growth.
Figures in the text are as of 2026-08-31; the live price is shown at the top of the page.
NetScout's revenue increased 12.7% to $210.4 million in Q1 fiscal 2027, supported by 19.7% growth in service assurance. Government orders worth $10 million to $15 million that arrived earlier than expected contributed to this result, and management said adjusted growth would have been in the mid-single digits. Omnis Sensor and Omnis Streamer also supported demand, alongside government deals totaling in the low tens of millions of dollars.
On August 6, 2026, management reaffirmed its fiscal 2027 revenue outlook of $885 million to $915 million. It expects non-GAAP earnings per share of $2.65 to $2.80, with an effective tax rate of approximately 20% and average diluted shares of 74 million to 75 million. For Q2 fiscal 2027, the company expects revenue to be approximately flat year over year because some orders shifted into Q1 and the comparison period was strong.
The Smart Data platform provides precise packet-level data for use in analytics, automation, AIOps, service assurance, and cybersecurity. Omnis Sensor and Omnis Streamer enable data to be sent to monitoring, security, and AIOps platforms within the partner ecosystem, while nGenius Copilot enables natural-language access to Smart Data. As of August 6, 2026, the number of customers for the new Omnis solutions was fewer than ten, with customers still experimenting with artificial intelligence projects and defining their strategies.
On May 1, 2026, NetScout acquired DigiCert's DDoS protection business assets. The acquired business contributed to services revenue growth during Q1 fiscal 2027, while the company increased Arbor Cloud capacity to 33 terabits per second. Management said bringing the entire back-end infrastructure in-house provides greater control, faster innovation cycles, and better margin potential from the immediately added recurring revenue.
Part of the growth was associated with $10 million to $15 million of government orders arriving early, which is why management expects Q2 fiscal 2027 revenue to be approximately flat year over year. Cybersecurity grew just 0.6%, while the new Omnis solutions still have fewer than ten customers and are affected by the sales cycles of large artificial intelligence projects. The company also increased inventory by approximately $7 million to address the limited availability and rising prices of certain equipment, because customers' inability to obtain hardware could affect software purchases.
NetScout ended Q1 fiscal 2027 with $668.5 million in cash, cash equivalents, and marketable securities, compared with $705.1 million at the end of fiscal 2026. Free cash flow was $44.3 million during the quarter, while most of the decline in the cash balance reflected the May 1, 2026 acquisition of DigiCert's DDoS assets. The company did not repurchase shares during the quarter, but retained share repurchases among its stated capital allocation priorities.
