NetScout Reports Q2 2027 Results with Margin Expansion and Reaffirmed Guidance
NetScout Systems (NTCT) reported second-quarter fiscal 2027 revenue of $222.2 million, a modest 1.4% year-over-year increase. While product revenue declined by 5.1% due to the acceleration of federal government orders into the first quarter, service revenue grew by 6.4%. The company saw improved profitability with Non-GAAP EPS rising to $0.71 from $0.62 in the prior year and operating margins expanding to 28.3% driven by cost discipline. Despite steady performance, management highlighted several headwinds, including disciplined spending among service providers, supply chain challenges involving rising server prices, and regional conflicts impacting Middle Eastern revenue. However, NetScout secured significant wins, including a high seven-figure order from a major U.S. financial institution. The company reaffirmed its full-year 2027 revenue guidance of $885 million to $915 million.
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