NetScout Systems Inc. Common Stock (NTCT)

FairStock Score: 52/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I'm looking at NetScout through a value lens, and the first question is whether the turnaround is real. The filed results show progress: in fiscal Q1 2027, the quarter ended 2026-06-30, revenue was $210.4M and net income was $21.8M, or $0.29 diluted EPS, compared with revenue of $186.7M and a net loss of $3.7M, or $0.05 diluted EPS, in fiscal Q1 2026. For FY2026, the year ended 2026-03-31, NetScout earned $95.5M on $859.5M of revenue, versus a FY2025 net loss of $366.9M on $822.7M of revenue. That is a genuine recovery from the FY2024 loss of $147.7M. The balance sheet is conservative, with a FairStock debt-to-equity calculation of 0.02 and an Altman Z-Score of 3.04. Cash generation is the strongest part: FairStock calculates trailing free cash flow of $258.1M and an 8.8% FCF yield. But business quality is not yet proven. FairStock shows ROE of 7.54% and ROCE of 3.67%, which are modest for a mission-critical software firm. Revenue growth has been uneven: FY2026 revenue was only modestly above FY2025, and FY2025 was below FY2024. At the 2026-10-13 close of $40.15, FairStock's P/E is 24.48, P/B 1.75, EV/EBITDA 11.86, PEG 1.89, and the Graham Number is $29.06, implying a -38.16% margin of safety. The FairStock Score is 52/100 and Lynch category is TURNAROUND. I'd want more consistent revenue and higher returns on capital before calling this a bargain.

In plain English: NetScout makes software that helps telecom and business networks run reliably and fights cyber attacks. The company has returned to profit after losses, carries very little debt, and produces lots of cash, but sales are barely growing and profits on invested money are modest. At the latest close of $40.15, the price looks full compared with conservative measures of value.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2027 10-Q (period ended 2026-06-30) · fiscal Q3 2026 10-Q (period ended 2025-12-31) · fiscal Q2 2026 10-Q (period ended 2025-09-30) · fiscal Q1 2026 10-Q (period ended 2025-06-30) · FY2026 10-K (period ended 2026-03-31) · FY2025 10-K (period ended 2025-03-31) · FY2024 10-K (period ended 2024-03-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer