NETSCOUT Reports Second Quarter Fiscal Year 2026 Financial Results

Core Insights - NETSCOUT reported strong financial results for Q2 FY26, exceeding both revenue and earnings expectations, and raised its fiscal year outlook [1][3][12] Financial Performance - Total revenue for Q2 FY26 was $219.0 million, up from $191.1 million in Q2 FY25, representing a growth of approximately 14.5% [4] - Product revenue for Q2 FY26 was $94.7 million, approximately 43% of total revenue, compared to $81.0 million or 42% in Q2 FY25 [5] - Service revenue for Q2 FY26 was $124.3 million, approximately 57% of total revenue, compared to $110.1 million or 58% in Q2 FY25 [6] - GAAP income from operations for Q2 FY26 was $32.5 million, with an operating margin of 14.8%, compared to $14.1 million and 7.4% in Q2 FY25 [7] - Non-GAAP income from operations for Q2 FY26 was $58.1 million, with a non-GAAP operating margin of 26.5%, compared to $44.1 million and 23.1% in Q2 FY25 [7] Net Income - GAAP net income for Q2 FY26 was $25.8 million, or $0.35 per diluted share, compared to $9.0 million or $0.13 per diluted share in Q2 FY25 [8] - Non-GAAP net income for Q2 FY26 was $45.1 million, or $0.62 per diluted share, compared to $33.6 million or $0.47 per diluted share in Q2 FY25 [9] Cash and Shareholder Returns - As of September 30, 2025, NETSCOUT had cash and marketable securities totaling $526.9 million, up from $492.5 million as of March 31, 2025 [10] - During Q2 FY26, the company repurchased 740,981 shares at an average price of $22.34 per share, totaling approximately $16.6 million [10] First-Half Financial Results - For the first half of FY26, total revenue was $405.8 million, compared to $365.7 million in the first half of FY25 [13] - GAAP net income for the first half of FY26 was $22.1 million, or $0.30 per diluted share, compared to a net loss of $434.3 million or $(6.08) per diluted share in the first half of FY25 [13] Financial Outlook - The company raised its revenue outlook for FY26 to a range of $830 million to $870 million, up from the previous range of $825 million to $865 million [12] - GAAP net income per share (diluted) is now expected to be in the range of $1.13 to $1.23, and non-GAAP net income per share (diluted) is expected to be in the range of $2.35 to $2.45 [12] Strategic Initiatives - NETSCOUT is focusing on AI-driven product innovation and has received positive customer feedback at its recent Engage Technology and User Summit [2][3] - The company announced new solutions for enhanced monitoring and observability in cloud environments, addressing compliance demands [12][14]