NetScout Systems Inc
NTCT
$26.90 -0.30%
Exchange: NASDAQ | Sector: Technology | Industry: Software Infrastructure
Q3 2025
Published: Feb 6, 2025

Earnings Highlights

  • Revenue of $252.02M up 15.6% year-over-year
  • EPS of $0.67 increased by 136.4% from previous year
  • Gross margin of 75.7%
  • Net income of 48.81M
  • "Certain customer orders initially anticipated in the fourth quarter were instead received in the third quarter as customers leveraged the calendar year end budgets." - Anil Singhal
NTCT
NetScout Systems Inc

Executive Summary

NetScout Systems (NTCT) delivered a robust Q3 FY2025, with revenue of $252.0 million, non-GAAP diluted EPS of $0.94, and an EBITDA of $78.3 million, reflecting a 31% EBITDA margin. The quarter benefited from the accelerated recognition of customer orders originally slated for Q4, driven by calendar-year budgeting, and strong expansion in both Cybersecurity and Service Assurance. Cybersecurity revenue rose ~29% YoY in Q3, underpinned by ongoing demand for AI-enhanced protections (Adaptive DDoS) and new Arbor Edge Defense/Arbor Enterprise Manager capabilities. Service Assurance posted ~9% growth in Q3 but faced year-to-date headwinds, including backlog-related revenue and a divestiture that reduced YoY comparability. Management guided FY2025 with revenue of $810–$820 million and non-GAAP EPS of $2.15–$2.25, maintaining the midpoints from prior guidance. NetScout finished Q3 with a strong balance sheet: cash and investments of $427.9 million, a $75 million revolver outstanding to be repaid in Q4, and a net cash position driven by operating cash flow of $41.5 million for the quarter and free cash flow of $39.6 million. The company also cited a growing pipeline in edge and 5G-related initiatives, including private 5G, network slicing, and fixed wireless, with several enterprise and service provider opportunities in advanced stages. The outlook remains cautiously favorable, with upside potential from cybersecurity go-to-market initiatives and AI-driven threat detection, while backdrop risks include backlog concentration and IT-spend volatility.

Key Performance Indicators

Revenue
Increasing
252.02M
QoQ: 31.87% | YoY: 15.57%
Gross Profit
Increasing
190.82M
75.72% margin
QoQ: 28.02% | YoY: 9.39%
Operating Income
Increasing
61.71M
QoQ: 336.97% | YoY: 145.90%
Net Income
Increasing
48.81M
QoQ: 440.71% | YoY: 136.82%
EPS
Increasing
0.68
QoQ: 423.08% | YoY: 136.36%

Revenue Trend

Margin Analysis

Historical Earnings Comparison

PeriodRevenue ($M)EPS ($)YoY GrowthReport
Q1 2026 186.75 -0.05 +7.0% View
Q4 2025 204.99 0.25 +0.8% View
Q3 2025 252.02 0.67 +15.6% View
Q2 2025 191.11 0.13 -2.9% View
Q1 2025 174.57 -6.20 -17.3% View