NetScout Systems, Inc. · NASDAQ:NTCT

NetScout Systems — Q2 FY2027 Earnings Presentation

23 slides from NetScout Systems's earnings presentation, Nov 5, 2026

  1. Slide 1: Q2 FY'27 Financial Results Conference Call

    Q2 FY’27 Financial Results Conference Call Period ended September 30, 2026 Published November 5, 2026 COPYRIGHT © 2026 NETSCOUT SYSTEMS, INC. | NETSCOUT PUBLIC

  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 measures: non-GAAP gross profit, non-GAAP gross margin, non-GAAP

  5. Slide 5: CEO Perspective

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

  6. Slide 6: Q2 FY'27 & 1H FY'27 Financial Highlights

    Q2 FY’27 & 1H 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) Q2 Q2 Q2 Q2 $222.2M 80.9% 28.3% $0.71 +1.4% Y/Y -0.5pts Y/Y +1.8pts Y/Y +14.5% Y/Y 1H 1H 1H 1H $432.6M 80.8% 24.6% $1.23 +6.

  7. Slide 7: Business & Market Insights

    Business & Market Insights Service Cybersecurity Assurance Product Line Market Insights Customer Wins Performance In fiscal 2028, Service Assurance will be renamed Network Observability COPYRIGHT © 2026 NETSCOUT SYSTEMS, INC. | 7

  8. Slide 8: FY'27 Outlook & Summary

    FY’27 Outlook & Summary Meaningful long-term Solid first half; Reaffirming opportunities in Network Focused on profitable FY’27 Observability, AIOps, growth, free cash flow Outlook Cybersecurity and DDoS and shareholder value Attack Protection COPYRIGHT © 2026 NETSCOUT SYSTEMS, INC. | 8

  9. Slide 9: CFO Financial Review Q2 FY'27 Results

    CFO Financial Review Q2 FY’27 Results Tony Piazza Executive Vice President & Chief Financial Officer COPYRIGHT © 2026 NETSCOUT SYSTEMS, INC. | NETSCOUT PUBLIC 9

  10. Slide 10: Q2 FY'27 & 1H FY'27 Results

    Q2 FY’27 & 1H FY’27 Results (GAAP revenue, other metrics non-GAAP) Y/Y Y/Y Q2 FY'26 Q2 FY'27 Change 1H FY'26 1H FY'27 Change $M (except EPS & % data) Revenue $219.0 $222.2 1.4% $405.8 $432.6 6.6% Product Revenue $94.7 $89.9 (5.1%) $167.7 $175.9 4.9% Service Revenue $124.3 $132.3 6.4% $238.1 $256.7 7

  11. Slide 11: 1H FY'27 Revenue Trends: Product Lines & Customer Verticals

    1H FY’27 Revenue Trends: Product Lines & Customer Verticals Revenue by Product Line Revenue by Customer Vertical Total +6.6% $432.6 Total $432.6 $405.8 $405.8 +6.6% $148.8 $143.4 34% Cyber $267.7 35% +3.8% $245.3 ENT 60% 62% +9.1% $262.4 $283.8 SA SP 65% 66% $160.5 $164.9 +8.2% +2.8% 40% 38% 1H FY'2

  12. Slide 12: 1H FY'27 Revenue Trends: Geographic Mix

    1H FY’27 Revenue Trends: Geographic Mix Y/Y 1H FY'26 1H FY'27 Change $M Revenue $405.8 $432.6 6.6% United States $231.7 $248.4 7.2% International $174.1 $184.2 5.8% UNITED STATES INTERNATIONAL EUROPE ASIA REST OF WORLD Europe $64.3 $74.6 16.0% Asia $30.3 $34.5 13.7% Rest of World $79.4 $75.1 (5.4%)

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

    Balance Sheet & Free Cash Flow Review $M (GAAP, Unaudited) 9/30/2026 Financial Profile (Non-GAAP) 9/30/2026 Cash and Securities $ 571.3 Total Liquidity ($M) $ 1,171.3 Accounts Receivable, Net $ 137.3 Liquidity to Adjusted EBITDA 4.3x Inventories $ 30.0 Gross Leverage 0.0x Total Long-Term Debt $ - Ne

  14. Slide 14: Reaffirming FY'27 Outlook

    Reaffirming FY’27 Outlook Other 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 descri

  15. Slide 15: Upcoming Investor Events

    Upcoming Investor Events RBC Capital Markets Conference Date: Nov 18th, 2026 | Location: New York, NY Annual Needham Technology, Media, & Consumer Conference 7th Annual Needham Virtual Tech Week Date: Nov 19th, 2026 | Location: Virtual UBS Global Technology and AI Conference Date: Dec 2nd, 2026 | Lo

  16. Slide 16: Appendix

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

  17. Slide 17: Q2 FY'27 & 1H FY'27 Results GAAP

    Q2 FY’27 & 1H FY’27 Results GAAP Q2 FY'26 Q2 FY'27 Y/Y 1H FY'26 1H FY'27 Y/Y $M (except EPS & % data) Change Change Revenue: $ 219.0 $ 222.2 1.4% $ 405.8 $ 432.6 6.6% Product Revenue $ 94.7 $ 89.9 (5.1%) $ 167.7 $ 175.9 4.9% Service Revenue $ 124.3 $ 132.3 6.4% $ 238.1 $ 256.7 7.8% Cost of Revenue $

  18. Slide 18: Q2 FY'27 & 1H FY'27 Results

    Q2 FY’27 & 1H FY’27 Results (GAAP revenue, other metrics non-GAAP) Note: Revenue is a GAAP financial measure. All other amounts are non-GAAP financial measures. See the slide entitled “Non-GAAP Financial Metrics” near the beginning of this presentation for a description of the non-GAAP finance measu

  19. Slide 19: Q2 FY'27 GAAP to Non-GAAP Reconciliation

    Q2 FY’27 GAAP to Non-GAAP Reconciliation Q2 Q1 1H Ending 9/30 Ended 6/30 Ending 9/30 $Thousands (except EPS) 2026 2025 2026 2026 2025 Revenue $ 222,185 $ 219,017 $ 210,423 $ 432,608 $ 405,764 Gross profit (GAAP) $ 176,650 $ 175,407 $ 165,933 $ 342,583 $ 318,732 Share-based compensation expense (1) 2

  20. Slide 20: Q2 FY'27 GAAP to Non-GAAP Reconciliation

    Q2 FY’27 GAAP to Non-GAAP Reconciliation Q2 Q1 1H Ending 9/30 Ended 6/30 Ending 9/30 $Thousands (except EPS) 2026 2025 2026 2026 2025 (1) Share-based compensation expense included in these amounts is as follows: Cost of product revenue $ 289 $ 297 $ 403 $ 693 $ 710 Cost of service revenue 2,008 1,93

  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 $ 95.5 ~$115 to ~$126 Amortization of intangible assets $ 46.8 ~$46 Share-based compensation expenses $ 59.9 ~$55 Business development & integration expenses* $ -

  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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