NTCT Technology

NetScout Systems, Inc.

$37.93+0.82%

Price as of close on Nov 3, 2026 · Financials updated Oct 10, 2026

Basics

Sector: Technology
Industry: Software - Infrastructure
Country: United States
Market cap: 2.8B USD
Enterprise value: 2.2B USD
Full-time employees: 2,052

Overall health

Strength: its shares are priced lower than most peers relative to what it earnspriced lower than peers for its earnings
Strength: lower risk than most peers: less debt relative to equitylower risk: less debt vs equity
About average: growth

Ranks #288 of 1,612 technology companies (top 18%)

See how it ranks against its peers

Worth knowing

Stock pay outran buybacks. Stock-based pay expense $196M vs $136M spent repurchasing shares over the 3 fiscal years to FY Mar 2026. Shares outstanding changed +2.0% from March 2023 to July 2026.
Over three fiscal years NetScout Systems recorded $196M of stock-based pay expense and spent $136M repurchasing shares (repurchases can include shares withheld to cover employees' taxes). Repurchases were smaller than the stock pay, so they did little to offset new employee shares.Over three fiscal years NetScout Systems recorded $196M of stock-based pay expense and spent $136M repurchasing shares. Repurchases were smaller than the stock pay, so they did little to offset new employee shares.
Operating margin at a 6-year high. 13% in FY Mar 2026, the best of the last 6 years.
NetScout Systems kept 13% of revenue as operating profit in FY Mar 2026, its highest in the 6 years of filings we have.
Cash flow well above reported profit. Free cash flow is 2.2× reported profit.
Free cash flow is 2.2× reported profit. Large non-cash charges, such as depreciation, amortization or stock-based pay, reduce reported profit without using cash.

StockQuotient Score

67/ 100

Oct 5 67 → Nov 4 67

Valuation

Is the price right?

79/100

Moderate▲ 1 since Oct 27 close

3/3 inputs reported · High confidence

Since last quarter: No major changeValuation also moves with the share price every day.

Why it changed since the Oct 27, 2026 close: Score 78 → 79

Share price -6.3%+2
Peer companies moved-1

Each step re-scores the company against its peers as they were on Oct 28, 2026; the parts add up to the change. Price effects on EBITDA yield are approximate.

Why

Stronger than most peers on:

▲ FCF yield
▲ EBITDA yield
▲ Earnings yield

Compare with peers

Behind the score

Sector-normalized EBITDA, earnings, and free cash flow yields.

Earnings yield4.4%

SEC filings · 12 months to Jun 2026Reported value30% base weight · Z-score 0.95Sector median: 0.0225 · MAD: 0.0225

EBITDA yield8.7%

Yahoo Finance fallback · SEC enterprise value unavailable (debt or EBITDA not reported in standard form) · trailing 12 monthsReported value50% base weight · Z-score 1.23Sector median: 0.0423 · MAD: 0.0361

Free cash flow yield9.5%

SEC filings · 12 months to Jun 2026 · operating cash flow − capital spendingReported value20% base weight · Z-score 2.45Sector median: 0.0274 · MAD: 0.0274

Other data (not scored)

Book yield60.3%

SEC filings · latest balance sheetReported valueInformational · 0% composite weightSector median: 0.3292 · MAD: 0.1754

Growth

Is it growing?

56/100

Moderate

3/3 inputs reported · High confidence

Since last quarter: ▲ Stronger

12-month revenue up 2.8%

Why

Mixed versus peers:

▲ EPS growth
▼ 3-yr revenue

Compare with peers

Behind the score

Revenue and earnings-per-share growth over one year, and revenue growth over three years.

Earnings per share growth64.3%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 1.75Sector median: 0.1108 · MAD: 0.3050

3-year revenue growth-1.2%

SEC filings · 3 years to Jun 2026Reported value33% base weight · Z-score -0.77Sector median: 0.0483 · MAD: 0.0793

Revenue growth5.8%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score -0.27Sector median: 0.0853 · MAD: 0.1017

Profitability

Does it earn well?

66/100

Moderate

3/3 inputs reported · High confidence

Since last quarter: ▲ Stronger

Operating margin rose 2.0 points to 14.8%

Why

Stronger than most peers on:

▲ Operating margin
▲ ROA

Compare with peers

Behind the score

Return on invested capital, operating margin, and return on assets.

Operating margin14.8%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 1.20Sector median: 0.0631 · MAD: 0.0710

Return on assets5.2%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 0.64Sector median: 0.0293 · MAD: 0.0362

Return on invested capital9.3%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 0.30Sector median: 0.0676 · MAD: 0.0857

Other data (not scored)

Gross margin79.8%

SEC filings · 12 months to Jun 2026Reported valueInformational · 0% composite weightSector median: 0.3343 · MAD: 0.1632

Return on equity7.3%

SEC filings · 12 months to Jun 2026Reported valueInformational · 0% composite weightSector median: 0.0753 · MAD: 0.0889

Risk

Debt, liquidity, price swings

Lower

Lower relative risk

3/3 inputs reported · High confidence

Since last quarter: No major change

Why

Stronger than most peers on:

▲ Debt / equity
▲ Beta

Compare with peers

Behind the score

Relative to sector peers: 0 = lower relative risk · 1 = moderate · 2 = higher. Based on leverage, beta and liquidity.

Beta0.69

Yahoo Finance · 5-year monthly beta vs the marketReported value33% base weight · Z-score 0.49Sector median: 0.8710 · MAD: 0.3700

Current ratio1.83×

SEC filings · latest balance sheetReported value33% base weight · Z-score -0.01Sector median: 1.8295 · MAD: 0.6848

Debt / equity0.02×

Yahoo Finance fallback · no standard SEC debt tagReported value33% base weight · Z-score 0.99Sector median: 0.2495 · MAD: 0.2270

Valuation, growth and profitability scores: higher is better. Risk: 0 is lower, 2 is higher. Risk is a relative proxy, not a bankruptcy probability. Scores depend on available sector peers.

Questions investors ask about NetScout Systems

Is NetScout Systems getting weaker?: Its latest SEC filing (Aug 6, 2026) got stronger: operating margin rose 2.0 points to 14.8%. Its overall score is unchanged at 67/100 since Oct 28, 2026.
How is NetScout Systems valued vs its peers?: Priced lower than most peers relative to what it earns. Valuation scores 79/100 against 1,711 technology peers. Free cash flow yield 9.5% vs a peer median of 2.7% (stronger than 88% of peers).Free cash flow yield 9.5% vs peers 2.7% (stronger than 88% of peers).
Is NetScout Systems growing?: At about the same pace as its peers. Growth scores 56/100 against 1,711 technology peers. Earnings per share growth 64.3% vs a peer median of 11.1% (stronger than 79% of peers).Earnings per share growth 64.3% vs peers 11.1% (stronger than 79% of peers). 3-year revenue growth -1.2% vs a peer median of 4.8% (weaker than 71% of peers).3-year revenue growth -1.2% vs peers 4.8% (weaker than 71% of peers).
How profitable is NetScout Systems?: More profitable than most of its peers. Profitability scores 66/100 against 1,711 technology peers. Operating margin 14.8% vs a peer median of 6.3% (stronger than 76% of peers).Operating margin 14.8% vs peers 6.3% (stronger than 76% of peers).
How risky is NetScout Systems?: Lower risk relative to 1,711 technology peers, judged on debt, liquidity and share-price swings. Debt / equity 0.02× vs a peer median of 0.25× (stronger than 84% of peers).Debt / equity 0.02× vs peers 0.25× (stronger than 84% of peers). A relative measure, not a bankruptcy probability.

Latest filing: what changed

Quarter ended Jun 30, 2026 · filed Aug 6, 2026 · compared with the quarter ended Mar 31, 2026

Got stronger

Operating margin rose 2.0 points to 14.8%

	Previous quarter	Latest quarter	Change
Revenue (12 months)	859.5M USD	883.2M USD	+2.8%
Net income (12 months)	95.5M USD	121.0M USD	+26.7%
Operating margin	12.8%	14.8%	+2.0 pts
Free cash flow (12 months)	285.4M USD	261.0M USD	−8.5%
Cash	586.5M USD	552.8M USD	−5.7%
Shares outstanding	71.5M	72.7M	+1.7%

From the company’s own SEC filings, as filed. Twelve-month figures roll forward one quarter at a time.

Industry valuation context

Industry: Software - Infrastructure · 71 companies

Valuations in Software - Infrastructure are above their usual range since 2016.

61% of months since 2016 were valued lower than now.
22% of companies are in the most expensive fifth of their own price-to-sales history.
Over 24 months, company values +19% and earnings +22% (medians): prices and earnings moved broadly together.
Median price-to-sales is +97% vs the whole market, against a usual +103%.

2016Shaded: most expensive fifth of its range2026

Financials

Fiscal years from SEC annual filings · change vs the prior year

Key ratios	FY Mar 2022	FY Mar 2023	FY Mar 2024	FY Mar 2025	FY Mar 2026	Change
Gross margin	75.0%	75.6%	77.4%	78.3%	79.4%	▲ 1.1 pts
Operating margin	5.7%	8.5%	-18.1%	-44.7%	12.8%	▲ 57 pts
Net margin	4.2%	6.5%	-17.8%	-44.6%	11.1%	▲ 56 pts
Return on assets (ROA)	1.1%	2.1%	-5.7%	-16.8%	4.1%	▲ 21 pts
Return on equity (ROE)	1.7%	2.9%	-7.8%	-23.5%	5.8%	▲ 29 pts
Free cash flow margin	33.4%	16.0%	6.3%	25.8%	33.2%	▲ 7.4 pts
Current ratio	1.94×	1.36×	1.70×	1.75×	1.85×	▲ 5.6%
Quick ratio	1.88×	1.32×	1.67×	1.72×	1.82×	▲ 5.9%
Debt to equity	0.17×	0.05×	0.05×	0.00×	—	—
Interest coverage	6.04×	7.58×	-17.32×	-51.34×	64.41×	▲ 225%

NTCT price history

Price history is added with the daily price update and will appear after the next one.

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Bringing the fundamentals into focus…

Overall health

Strength: its shares are priced lower than most peers relative to what it earnspriced lower than peers for its earnings

Strength: lower risk than most peers: less debt relative to equitylower risk: less debt vs equity

About average: growth

Ranks #288 of 1,612 technology companies (top 18%)

See how it ranks against its peers

Worth knowing

Stock pay outran buybacks. Stock-based pay expense $196M vs $136M spent repurchasing shares over the 3 fiscal years to FY Mar 2026. Shares outstanding changed +2.0% from March 2023 to July 2026.

Over three fiscal years NetScout Systems recorded $196M of stock-based pay expense and spent $136M repurchasing shares (repurchases can include shares withheld to cover employees' taxes). Repurchases were smaller than the stock pay, so they did little to offset new employee shares.Over three fiscal years NetScout Systems recorded $196M of stock-based pay expense and spent $136M repurchasing shares. Repurchases were smaller than the stock pay, so they did little to offset new employee shares.

Operating margin at a 6-year high. 13% in FY Mar 2026, the best of the last 6 years.

NetScout Systems kept 13% of revenue as operating profit in FY Mar 2026, its highest in the 6 years of filings we have.

Cash flow well above reported profit. Free cash flow is 2.2× reported profit.

Free cash flow is 2.2× reported profit. Large non-cash charges, such as depreciation, amortization or stock-based pay, reduce reported profit without using cash.

Questions investors ask about NetScout Systems

Is NetScout Systems getting weaker?

Its latest SEC filing (Aug 6, 2026) got stronger: operating margin rose 2.0 points to 14.8%. Its overall score is unchanged at 67/100 since Oct 28, 2026.

How is NetScout Systems valued vs its peers?

Priced lower than most peers relative to what it earns. Valuation scores 79/100 against 1,711 technology peers. Free cash flow yield 9.5% vs a peer median of 2.7% (stronger than 88% of peers).Free cash flow yield 9.5% vs peers 2.7% (stronger than 88% of peers).

Is NetScout Systems growing?

At about the same pace as its peers. Growth scores 56/100 against 1,711 technology peers. Earnings per share growth 64.3% vs a peer median of 11.1% (stronger than 79% of peers).Earnings per share growth 64.3% vs peers 11.1% (stronger than 79% of peers). 3-year revenue growth -1.2% vs a peer median of 4.8% (weaker than 71% of peers).3-year revenue growth -1.2% vs peers 4.8% (weaker than 71% of peers).

How profitable is NetScout Systems?

More profitable than most of its peers. Profitability scores 66/100 against 1,711 technology peers. Operating margin 14.8% vs a peer median of 6.3% (stronger than 76% of peers).Operating margin 14.8% vs peers 6.3% (stronger than 76% of peers).

How risky is NetScout Systems?

Lower risk relative to 1,711 technology peers, judged on debt, liquidity and share-price swings. Debt / equity 0.02× vs a peer median of 0.25× (stronger than 84% of peers).Debt / equity 0.02× vs peers 0.25× (stronger than 84% of peers). A relative measure, not a bankruptcy probability.

Previous quarter

Latest quarter

Change

Revenue (12 months)

859.5M USD

883.2M USD

+2.8%

Net income (12 months)

95.5M USD

121.0M USD

+26.7%

Operating margin

12.8%

14.8%

+2.0 pts

Free cash flow (12 months)

285.4M USD

261.0M USD

−8.5%

Cash

586.5M USD

552.8M USD

−5.7%

Shares outstanding

71.5M

72.7M

+1.7%

Key ratios

FY Mar 2022

FY Mar 2023

FY Mar 2024

FY Mar 2025

FY Mar 2026

Change

Gross margin

75.0%

75.6%

77.4%

78.3%

79.4%

▲ 1.1 pts

Operating margin

5.7%

8.5%

-18.1%

-44.7%

12.8%

▲ 57 pts

Net margin

4.2%

6.5%

-17.8%

-44.6%

11.1%

▲ 56 pts

Return on assets (ROA)

1.1%

2.1%

-5.7%

-16.8%

4.1%

▲ 21 pts

Return on equity (ROE)

1.7%

2.9%

-7.8%

-23.5%

5.8%

▲ 29 pts

Free cash flow margin

33.4%

16.0%

6.3%

25.8%

33.2%

▲ 7.4 pts

Current ratio

1.94×

1.36×

1.70×

1.75×

1.85×

▲ 5.6%

Quick ratio

1.88×

1.32×

1.67×

1.72×

1.82×

▲ 5.9%

Debt to equity

0.17×

0.05×

0.00×

—

Interest coverage

6.04×

7.58×

-17.32×

-51.34×

64.41×

▲ 225%