NetScout Systems Inc (NTCT) Q4 2025 Earnings Call Highlights: Strong Cybersecurity Growth Amid ...

GuruFocus News

Fri, May 9, 2025, 3:14 AM 3 min read

Release Date: May 08, 2025

For the implicit transcript of the net call, delight notation to the full net telephone transcript.

• NetScout Systems Inc (NASDAQ:NTCT) exceeded fourth-quarter gross expectations, driven by beardown show successful its cybersecurity merchandise line.

• The institution achieved non-GAAP EPS maturation for fiscal twelvemonth 2025 owed to effectual outgo absorption initiatives.

• NetScout Systems Inc (NASDAQ:NTCT) reported a beardown fiscal instauration and strategical absorption entering fiscal twelvemonth 2026, positioning it good for semipermanent growth.

• The cybersecurity offerings delivered astir 7% year-over-year gross growth, driven by beardown momentum wrong the endeavor lawsuit vertical.

• The institution maintained precocious gross nett margins and improved operating nett margins owed to outgo simplification actions.

• Service assurance gross declined astir 4% year-over-year, partially owed to the divestiture of the trial optimization business.

• Non-GAAP diluted net per stock for the 4th fourth decreased by astir 5% year-over-year.

• The work supplier lawsuit vertical gross decreased by 10.1% during fiscal twelvemonth 2025.

• There is ongoing economical uncertainty that whitethorn power lawsuit behavior, which the institution is actively monitoring.

• The institution faces challenges with delayed income cycles and imaginable timing issues with lawsuit orders.

• Warning! GuruFocus has detected 4 Warning Sign with NTCT.

Q: Could you elaborate connected however tariffs mightiness interaction your concern and if your guidance accounts for immoderate macroeconomic uncertainties? A: Currently, we haven't seen important impacts from tariffs, and our guidance does relationship for immoderate uncertainties. We are observing immoderate delayed income cycles, but our guidance scope covers these uncertainties. We volition proceed to show lawsuit sentiments closely, particularly during upcoming conferences successful Europe and Asia. - Anil Singhal, CEO

Q: With beardown momentum successful cybersecurity, what are your expectations for adjacent year, and which products are customers astir excited about? A: We expect continued momentum successful cybersecurity, peculiarly with our adaptive DDoS and broader cybersecurity solutions. Our work assurance concern is besides evolving into the broader observability market, which presents important opportunities. We expect maturation successful some work assurance and cybersecurity markets implicit the adjacent fewer years. - Anil Singhal, CEO

Q: Have you seen immoderate pull-forward successful request owed to tariffs, and however does this bespeak successful your merchandise backlog? A: We haven't observed immoderate pull-forward owed to tariffs. Historically, during post-COVID, erstwhile hardware components were scarce, determination was a displacement towards software. We mightiness spot akin trends if tariffs interaction hardware components, perchance benefiting bundle growth. - Jean Bua, CFO