Netscout Systems, Inc. · NASDAQ:NTCT

Netscout Systems — Q1 2027 Earnings Presentation

23 slides from Netscout Systems's earnings presentation, Aug 6, 2026

  1. Slide 1: Q1 FY'27 Financial Results Conference Call

    Q1 FY’27 Financial Results Conference Call Period ended June 30, 2026 Published August 6, 2026 COPYRIGHT © 2026 NETSCOUT SYSTEMS, INC. | NETSCOUT PUBLIC 1

  2. Slide 2: Agenda

    Agenda Introduction Scott Dressel, Vice President Corporate Finance CEO Perspective Anil Singhal, President & Chief Executive Officer CFO Financial Review Tony Piazza, Executive Vice President & Chief Financial Officer Question & Answer Session COPYRIGHT © 2026 NETSCOUT SYSTEMS, INC. | NETSCOUT PUBL

  3. Slide 3: Forward-Looking Statements

    Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and other federal s

  4. Slide 4: Non-GAAP Financial Metrics

    Non-GAAP Financial Metrics To supplement the financial measures presented in NETSCOUT’s presentation in accordance with accounting principles generally accepted in the United States (GAAP), NETSCOUT also reports the following non-GAAP financial measures: non-GAAP gross profit, non-GAAP gross margin,

  5. Slide 5: CEO Perspective

    CEO Perspective Anil Singhal President & Chief Executive Officer COPYRIGHT © 2026 NETSCOUT SYSTEMS, INC. | NETSCOUT PUBLIC 5

  6. Slide 6: Q1 FY'27 Financial Highlights

    Q1 FY’27 Financial Highlights (GAAP revenue, other metrics non-GAAP) Total Revenue Gross Margin Operating Margin Diluted EPS (GAAP) (Non-GAAP) (Non-GAAP) (Non-GAAP) Q1 Q1 Q1 Q1 $210.4M 80.6% 20.8% $0.52 +13% Y/Y +1.9pts Y/Y +6.6pts Y/Y +53% Y/Y Note: Revenue is a GAAP measure. All other amounts are

  7. Slide 7: Business & Market Insights

    Business & Market Insights Service Cybersecurity Assurance Product Line Market Insights Customer Wins Performance COPYRIGHT © 2026 NETSCOUT SYSTEMS, INC. | 7

  8. Slide 8: FY'27 Outlook & Summary

    FY’27 Outlook & Summary Pursuing Opportunities Focused on Reaffirming Across AI, Observability, Profitable Growth, and DDoS While FY’27 Healthy Free Cash Flow & Navigating the Dynamic Outlook Shareholder Value Macro Environment COPYRIGHT © 2026 NETSCOUT SYSTEMS, INC. | 8

  9. Slide 9: CFO Financial Review Q1 FY'27 Results

    CFO Financial Review Q1 FY’27 Results Tony Piazza Executive Vice President & Chief Financial Officer COPYRIGHT © 2026 NETSCOUT SYSTEMS, INC. | NETSCOUT PUBLIC 9

  10. Slide 10: Q1 FY'27 Results

    Q1 FY’27 Results (GAAP revenue, other metrics non-GAAP) Y/Y Q1 FY'26 Q1 FY'27 Change $M (except EPS & % data) Revenue $186.7 $210.4 12.7% Product Revenue $73.0 $86.0 17.8% Service Revenue $113.8 $124.4 9.4% Gross Profit Margin 78.7% 80.6% Operating Margin 14.2% 20.8% Net Income $24.7 $38.6 55.9% Dil

  11. Slide 11: Revenue Trends: Product Lines & Customer Verticals

    Q1 FY’27 Revenue Trends: Product Lines & Customer Verticals Revenue by Product Line Revenue by Customer Vertical $210.4 Total $210.4 +12.7% Total $186.7 $186.7 +12.7% $68.8 $68.4 33% $132.0 37% Cyber $110.8 +0.6% 63% ENT 59% +19.1% $141.6 $118.3 67% $78.4 63% SA $76.0 SP +19.7% 41% 37% +3.3% Q1 FY'2

  12. Slide 12: Revenue Trends: Geographic Mix

    Q1 FY’27 Revenue Trends: Geographic Mix Q1 FY'26 8% 54% 46% 22% 16% Y/Y Q1 FY'26 Q1 FY'27 Change $M Revenue $186.7 $210.4 12.7% United States $100.5 $124.8 24.1% International $86.2 $85.7 (0.7%) UNITED STATES INTERNATIONAL EUROPE ASIA REST OF WORLD Europe $30.7 $36.0 17.1% Q1 FY'27 Asia $15.1 $13.6

  13. Slide 13: Balance Sheet & Free Cash Flow Review

    Balance Sheet & Free Cash Flow Review $M (GAAP, Unaudited) 6/30/2026 Financial Profile (Non-GAAP) 6/30/2026 Cash and Securities $ 668.5 Total Liquidity ($M) $ 1,268.5 Accounts Receivable, Net $ 80.0 Liquidity to Adjusted EBITDA 4.8x Inventories $ 20.9 Total Long-Term Debt $ - Total Deferred Revenue

  14. Slide 14: FY'27 Outlook

    FY’27 Outlook FY’27 Outlook Assumptions • Anticipate annual tax rate of approximately 20% • Anticipate approximately 74 to 75 million weighted average diluted shares outstanding See the slide entitled “Non-GAAP Financial Metrics” near the beginning of this presentation for a description of the non-G

  15. Slide 15: Upcoming Investor Events

    Upcoming Investor Events Annual Needham Technology, Media, & Consumer Conference B. Riley Securities Consumer & TMT Conference Date: Sept 10, 2026 | Location: Times Square, NY COPYRIGHT © 2026 NETSCOUT SYSTEMS, INC. | 15

  16. Slide 16: Appendix

    Appendix COPYRIGHT © 2026 NETSCOUT SYSTEMS, INC. | NETSCOUT PUBLIC 16

  17. Slide 17: Q1 FY'27 Results GAAP

    Q1 FY’27 Results GAAP Q1 FY'26 Q1 FY'27 Y/Y $M (except EPS & % data) Change Revenue: $ 186.7 $ 210.4 12.7% Product Revenue $ 73.0 $ 86.0 17.8% Service Revenue $ 113.8 $ 124.4 9.4% Cost of Revenue $ 43.4 $ 44.5 2.5% Gross Profit $ 143.3 $ 165.9 15.8% Gross Profit Margin 76.7% 78.9% Operating Expenses

  18. Slide 18: Q1 FY'27 Results (Non-GAAP)

    Q1 FY’27 Results (GAAP revenue, other metrics non-GAAP) Q1 FY'26 Q1 FY'27 Y/Y $M (except EPS & % data) Change Revenue: $ 186.7 $ 210.4 12.7% Product Revenue $ 73.0 $ 86.0 17.8% Service Revenue $ 113.8 $ 124.4 9.4% Cost of Revenue $ 39.7 $ 40.7 2.6% Gross Profit $ 147.0 $ 169.7 15.4% Gross Profit Mar

  19. Slide 19: Q1 FY'27 GAAP to Non-GAAP Reconciliation

    Q1 FY’27 GAAP to Non-GAAP Reconciliation Q1 Q4 Ending 6/30 Ending 3/31 $Thousands (except EPS) 2026 2025 2026 Revenue (GAAP) $ 210,423 $ 186,747 $ 203,035 Gross profit (GAAP) $ 165,933 $ 143,325 $ 159,108 Share-based compensation expense (1) 3,117 3,160 2,176 Amortization of acquired intangible asse

  20. Slide 20: Q1 FY'27 GAAP to Non-GAAP Reconciliation

    Q1 FY’27 GAAP to Non-GAAP Reconciliation Q1 Q4 Ending 6/30 Ending 3/31 2026 2025 2026 (1) Share-based compensation expense included in these amounts is as follows: Cost of product revenue $ 403 $ 413 $ 275 Cost of service revenue 2,714 2,747 1,901 Research and development 5,310 5,532 3,843 Sales and

  21. Slide 21: FY'27 Outlook: GAAP to Non-GAAP Reconciliation

    FY’27 Outlook: GAAP to Non-GAAP Reconciliation $M (except EPS) FY'26 FY'27 GAAP revenue $ 859.5 $885 to $915 FY'26 FY'27 GAAP net income (loss) $ 95.5 ~$115 to ~$126 Amortization of intangible assets $ 46.8 ~$46 Share-based compensation expenses $ 59.9 ~$55 Business development & integration expense

  22. Slide 22: Additional Information & Cash Flow

    Additional Information & Cash Flow • Cash and securities defined as cash, cash equivalents, short- and long-term marketable securities, and investments. • The Company’s adjusted EBITDA as calculated in its press release may differ from the 12-month trailing consolidated EBITDA as defined within the

  23. Slide 23: COPYRIGHT © 2026 NETSCOUT SYSTEMS, INC. |

    COPYRIGHT © 2026 NETSCOUT SYSTEMS, INC. | 23

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