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“Looking ahead, given our strong first-half performance, we are raising our revenue and earnings per share outlook while we continue to successfully navigate uncertainties in the macroeconomic environment. We are energized by strong customer feedback, including at our recent Engage Technology and User Summit, where we showcased our latest solutions. It is clear that our customers rely on our highly curated data to drive improved business outcomes across key ecosystems, which positions us well to capture new opportunities through our differentiated solutions.”

Product revenue for the second quarter of fiscal year 2026 was $94.7 million, or approximately 43% of total revenue in the period. This compares with product revenue of $81.0 million, or approximately 42% of total revenue in the second quarter of fiscal year 2025. As of September 30, 2025, NETSCOUT had a total product backlog of $39.8 million, which includes $27.7 million of fulfillable backlog, $7.1 million related to a multi-year enterprise license commitment, and $5.0 million of radio frequency propagation modeling projects. This compares to $27.1 million on September 30, 2024, consisting of $22.4 million of fulfillable backlog and $4.7 million of radio frequency propagation modeling projects.

NETSCOUT’s GAAP income from operations was $32.5 million in the second quarter of fiscal year 2026, which included a restructuring charge of $0.3 million. This compares with a GAAP income from operations of $14.1 million in the second quarter of fiscal year 2025, which included a restructuring charge of 2.4 million. The Company’s GAAP operating margin was 14.8% in the second quarter of fiscal year 2026, versus 7.4% in the same period of fiscal year 2025. Non-GAAP income from operations was $58.1 million with a non-GAAP operating margin of 26.5% in the second quarter of fiscal year 2026. This compares to non-GAAP income from operations of $44.1 million and a non-GAAP operating margin of 23.1% in the second quarter of fiscal year 2025. Non-GAAP EBITDA from operations in the second quarter of fiscal year 2026 was $60.7 million, or 27.7% of quarterly revenue for the period. This compares to non-GAAP EBITDA from operations of $47.5 million in the second quarter of fiscal year 2025, or 24.9% of quarterly revenue for the period.

Net income (GAAP) for the second quarter of fiscal year 2026 was $25.8 million, or $0.35 per share (diluted), which included the restructuring charge mentioned above, versus a GAAP net income of $9.0 million, or $0.13 per share (diluted), for the second quarter of fiscal year 2025, which included the previously mentioned restructuring charges. Non-GAAP net income was $45.1 million or $0.62 per share (diluted), for the second quarter of fiscal year 2026, compared with $33.6 million, or $0.47 per share (diluted), for the second quarter of fiscal year 2025.

As of September 30, 2025, cash, cash equivalents, short and long-term marketable securities and investments were $526.9 million, compared with $492.5 million as of March 31, 2025. As previously disclosed, NETSCOUT completed the sale of a foreign investment for the equivalent of $11.8 million on August 4, 2025. The original purchase price was $7.5 million. During the second quarter of fiscal year 2026, NETSCOUT repurchased a total of 740,981 shares of its common stock at an average price of $22.34 per share for an aggregate purchase price of approximately $16.6 million. As of September 30, 2025, the Company had no debt outstanding under its $600 million revolving credit facility, which expires in October 2029.

•NETSCOUT’s income from operations (GAAP) for the first half of fiscal year 2026 was $25.9 million. This compared with a loss of $449.2 million which included a non-cash goodwill impairment charge of $427.0 million taken in the first quarter of fiscal year 2025 and restructuring charges of $19.0 million. The Company’s operating margin (GAAP) for the first half of fiscal year 2026 was 6.4%, versus negative 122.8% in the first half of fiscal year 2025. The Company’s non-GAAP EBITDA from operations for the first half of fiscal year 2026 was $90.0 million, or 22.2% of total revenue, versus non-GAAP EBITDA from operations of $65.3 million, or 17.9% of total revenue in the first half of fiscal year 2025. The Company’s non-GAAP income from operations for the first half of fiscal year 2026 was $84.6 million with a non-GAAP operating margin of 20.9%, compared with non-GAAP income from operations of $58.1 million with a non-GAAP operating margin of 15.9% for the first half of fiscal year 2025.

•For the first half of fiscal year 2026, NETSCOUT’s net income (GAAP) was $22.1 million, or $0.30 per share (diluted). This compares with a net loss (GAAP) of $434.3 million, or $(6.08) per share (diluted), for the first half of fiscal year 2025, which included the non-cash goodwill impairment and restructuring charges mentioned above. Non-GAAP net income for the first half of fiscal year 2026 was $69.8 million, or $0.95 per share (diluted), compared with non-GAAP net income of $54.1 million, or $0.75 per share (diluted) for the first half of fiscal year 2025.

▪In late October, the Company announced the availability of extended continuous end-through-end monitoring to enhance attribution for audit controls and incident reports, prove zero-trust network policies, and shorten time to detect, contain, and document incidents. Enhanced monitoring is designed into NETSCOUT's Omnis® KlearSight Sensor for Kubernetes (KlearSight) to help address the complex compliance demands faced in Cloud environments related to both security and

NETSCOUT will host a conference call to discuss its second-quarter fiscal year 2026 financial results and financial outlook today at 8:30 a.m. ET. This call will be webcast live through NETSCOUT’s website at https://ir.netscout.com/investors/overview/default.aspx. Alternatively, investors can listen to the call by dialing (203) 518-9783. The conference call ID is NTCTQ226. A replay of the call will be available after 12:00 p.m. ET today, for approximately one week. The number for the replay is (800) 839-3011 for U.S./Canada and (402) 220-7231 for international callers.

To supplement the financial measures presented in NETSCOUT's press release 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 income from operations, non-GAAP operating margin, non-GAAP net income, non-GAAP diluted net income per share, and non-GAAP earnings before interest and other expense, income taxes, depreciation, and amortization from operations (Non-GAAP EBITDA from operations). Non-GAAP gross profit removes expenses related to the amortization of acquired intangible assets, share-based compensation expense, and acquisition-related depreciation expense. Non-GAAP income from operations includes the aforementioned adjustments related to non-GAAP gross profit and also removes goodwill impairment charges, executive transition

costs, and restructuring charges. Non-GAAP operating margin includes the foregoing adjustments related to non-GAAP income from operations. Non-GAAP net income includes the foregoing adjustments related to non-GAAP income from operations, and also removes the income tax effects of such adjustments. Non-GAAP diluted net income per share includes the foregoing adjustments related to non-GAAP net income. Non-GAAP EBITDA from operations includes the aforementioned adjustments related to non-GAAP income from operations and also removes non-acquisition related depreciation expense. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures included in the attached tables within this press release.

These non-GAAP measures are not in accordance with GAAP, should not be considered an alternative for measures prepared in accordance with GAAP (gross profit, operating margin, net income, and diluted net income per share), and may have limitations because they do not reflect all NETSCOUT’s results of operations as determined in accordance with GAAP. These non-GAAP measures should only be used to evaluate NETSCOUT’s results of operations in conjunction with the corresponding GAAP measures. The presentation of non-GAAP information is not meant to be considered superior to, in isolation from, or as a substitute for results prepared in accordance with GAAP. NETSCOUT believes these non-GAAP financial measures will enhance the reader’s overall understanding of NETSCOUT’s current financial performance and NETSCOUT's prospects for the future by providing a higher degree of transparency for certain financial measures and providing a level of disclosure that helps investors understand how the Company plans and measures its own business. NETSCOUT believes that providing these non-GAAP measures affords investors a view of NETSCOUT’s operating results that may be more easily compared to peer companies and also enables investors to consider NETSCOUT’s operating results on both a GAAP and non-GAAP basis during and following the integration period of NETSCOUT’s acquisitions. Presenting the GAAP measures on their own, without the supplemental non-GAAP disclosures, might not be indicative of NETSCOUT’s core operating results. Furthermore, NETSCOUT believes that the presentation of non-GAAP measures when shown in conjunction with the corresponding GAAP measures provides useful information to management and investors regarding present and future business trends relating to its financial condition and results of operations.

NETSCOUT SYSTEMS, INC. (NASDAQ: NTCT) protects the connected world from cyberattacks and performance and availability disruptions through the company’s unique visibility platform and solutions powered by its pioneering deep packet inspection at scale technology. NETSCOUT serves the world’s largest enterprises, service providers, and public sector organizations. Learn more at www.netscout.com or follow @NETSCOUT on LinkedIn, X (formerly known as Twitter), or Facebook.

This press release 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 securities laws. Examples of forward-looking statements include statements regarding our future financial performance or position, liquidity, results of operations, business strategy, plans and objectives of management for future operations, and other statements that are not historical fact. You can identify forward-looking statements by their use of forward-looking words such as “may,” “will,” “anticipate,” “expect,” “believe,”

“estimate,” “intend,” “plan,” “should,” “seek,” or other comparable terms. Investors are cautioned that such forward-looking statements in this press release include, without limitation, statements regarding NETSCOUT’s ability to capture new opportunities through its differentiated solutions; NETSCOUT’s financial outlook and expectations; NETSCOUT’s strategic objectives, plans, commitments, aspirations and goals. Actual results could differ materially from those indicated in the forward-looking statements due to known and unknown risks, uncertainties, assumptions, and other factors, including macroeconomic factors and slowdowns or downturns in economic conditions generally and in the market for advanced networks, service assurance and cybersecurity solutions specifically; the volatile foreign exchange environment; the Company’s relationships with strategic partners and resellers; dependence upon broad-based acceptance of the Company’s network performance management solutions; the presence of competitors with greater financial resources than the Company has, and their strategic response to the Company’s products; the Company’s ability to retain key executives and employees; the Company’s ability to realize the anticipated savings from restructuring actions and other expense management programs; potential lower than expected demand for the Company’s products and services; and the timing and magnitude of stock buyback activity based on market conditions, corporate considerations, debt agreements, and regulatory requirements. The risks included above are not exhaustive. For a more detailed description of the risk factors associated with the Company, please refer to the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2025, filed with the Securities and Exchange Commission on May 15, 2025. Any forward-looking information in this press release is as of the date of this press release, and NETSCOUT undertakes no obligation to update such information unless required by law. NETSCOUT’s financial guidance is based on estimates and assumptions that are subject to significant uncertainties.


NETSCOUT SYSTEMS, INC.
Condensed Consolidated Statements of Operations
(In thousands, except for per share data)
(Unaudited)

			Three Months Ended				Six Months Ended
			September 30,				September 30,
			2025		2024		2025		2024
Revenue:
	Product		$	94,712	$	81,033	$	167,705	$	142,202
	Service		124,305		110,075		238,059		223,471
		Total revenue	219,017		191,108		405,764		365,673
Cost of revenue:
	Product		11,597		13,440		23,522		25,444
	Service		32,013		28,617		63,510		60,982
		Total cost of revenue	43,610		42,057		87,032		86,426
Gross profit			175,407		149,051		318,732		279,247
Operating expenses:
	Research and development		40,269		35,909		80,058		78,374
	Sales and marketing		64,925		61,226		135,520		131,556
	General and administrative		26,261		23,742		54,118		49,323
	Amortization of acquired intangible assets		11,162		11,642		22,281		23,256
	Restructuring charges		304		2,409		833		18,972
	Goodwill impairment		—		—		—		426,967

		Total operating expenses	142,921		134,928		292,810		728,448

Income (loss) from operations			32,486		14,123		25,922		(449,201)
Interest and other (expense) income, net			(1,104)		(1,797)		2,632		7,831
Income (loss) before income tax expense (benefit)			31,382		12,326		28,554		(441,370)
Income tax expense (benefit)			5,554		3,299		6,405		(7,021)
Net income (loss)			$	25,828	$	9,027	$	22,149	$	(434,349)

Basic net income (loss) per share			$	0.36	$	0.13	$	0.31	$	(6.08)
Diluted net income (loss) per share			$	0.35	$	0.13	$	0.30	$	(6.08)
Weighted average common shares outstanding used in computing:
	Net income (loss) per share - basic		72,077		71,447		71,904		71,457
	Net income (loss) per share - diluted		72,917		71,837		73,130		71,457


NETSCOUT SYSTEMS, INC.
Consolidated Balance Sheets
(In thousands)
	September 30,		March 31,
	2025		2025
	(Unaudited)
Assets
Current assets:
Cash, cash equivalents, marketable securities and investments	$	516,863	$	491,473
Accounts receivable and unbilled costs, net	130,158		163,654
Inventories and deferred costs	12,381		12,891
Prepaid expenses and other current assets	48,629		45,166

Total current assets	708,031		713,184

Fixed assets, net	21,290		21,529
Operating lease right-of-use assets	38,388		37,717
Goodwill and intangible assets, net	1,307,906		1,335,073
Long-term marketable securities	10,042		1,004
Other assets	90,527		78,071

Total assets	$	2,176,184	$	2,186,578

Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	14,706	$	18,208
Accrued compensation	53,461		56,696
Accrued other	22,484		20,280
Deferred revenue and customer deposits	276,768		301,753
Current portion of operating lease liabilities	10,009		10,995

Total current liabilities	377,428		407,932

Other long-term liabilities	7,911		8,210
Deferred tax liability	2,872		2,643
Accrued long-term retirement benefits	29,571		27,379
Long-term deferred revenue and customer deposits	151,311		147,510
Operating lease liabilities, net of current portion	33,539		32,509


Total liabilities	602,632		$	626,183

Stockholders' equity:
Common stock	136		134
Additional paid-in capital	3,293,220		3,255,333
Accumulated other comprehensive income	3,954		4,073
Treasury stock, at cost	(1,701,464)		(1,654,702)
Accumulated deficit	(22,294)		(44,443)

Total stockholders' equity	1,573,552		1,560,395

Total liabilities and stockholders' equity	$	2,176,184	$	2,186,578


NETSCOUT SYSTEMS, INC.
Reconciliation of Current GAAP to Current and Historical Non-GAAP Financial Measures
(In thousands, except for per share data)
(Unaudited)

	Three Months Ended						Three Months Ended			Six Months Ended
	September 30,						June 30,			September 30,
	2025			2024			2025			2025			2024














Revenue	$	219,017		$	191,108		$	186,747		$	405,764		$	365,673

Gross Profit (GAAP)	$	175,407		$	149,051		$	143,325		$	318,732		$	279,247


Share-based compensation expense (1)	2,227			2,200			3,160			5,387			5,520
Amortization of acquired intangible assets (2)	551			996			550			1,101			1,991

Acquisition related depreciation expense (3)	1			2			2			3			4

Non-GAAP Gross Profit	$	178,186		$	152,249		$	147,037		$	325,223		$	286,762

Income (Loss) from Operations (GAAP)	$	32,486		$	14,123		$	(6,564)		$	25,922		$	(449,201)
GAAP Operating Margin	14.8		%	7.4		%	(3.5)		%	6.4		%	(122.8)		%


Share-based compensation expense (1)	13,557			14,886			19,959			33,516			36,084
Amortization of acquired intangible assets (2)	11,713			12,638			11,669			23,382			25,247


Restructuring charges	304			2,409			529			833			18,972
Goodwill impairment	—			—			—			—			426,967
Acquisition related depreciation expense (3)	11			11			12			23			23
Executive Transition Costs (4)	—			—			959			959			—
Non-GAAP Income from Operations	$	58,071		$	44,067		$	26,564		$	84,635		$	58,092
Non-GAAP Operating Margin	26.5		%	23.1		%	14.2		%	20.9		%	15.9		%

Net Income (Loss) (GAAP)	$	25,828		$	9,027		$	(3,679)		$	22,149		$	(434,349)


Share-based compensation expense (1)	13,557			14,886			19,959			33,516			36,084
Amortization of acquired intangible assets (2)	11,713			12,638			11,669			23,382			25,247


Restructuring charges	304			2,409			529			833			18,972
Goodwill impairment	—			—			—			—			426,967
Acquisition related depreciation expense (3)	11			11			12			23			23


Executive Transition Costs (4)	—			—			959			959			—
Income tax adjustments (5)	(6,336)			(5,409)			(4,712)			(11,048)			(18,804)
Non-GAAP Net Income	$	45,077		$	33,562		$	24,737		$	69,814		$	54,140

Diluted Net Income (Loss) Per Share (GAAP)	$	0.35		$	0.13		$	(0.05)		$	0.30		$	(6.08)
Share impact of non-GAAP adjustments identified above	0.27			0.34			0.39			0.65			6.83
Non-GAAP Diluted Net Income Per Share	$	0.62		$	0.47		$	0.34		$	0.95		$	0.75

Shares used in computing non-GAAP diluted net income per share	72,917			71,837			73,376			73,130			72,197


NETSCOUT SYSTEMS, INC.
Reconciliation of Current GAAP to Current and Historical Non-GAAP Financial Measures - Continued
(In thousands)
(Unaudited)

			Three Months Ended				Three Months Ended		Six Months Ended
			September 30,				June 30,		September 30,
			2025		2024		2025		2025		2024

(1)	Share-based compensation expense included in these amounts is as follows:
		Cost of product revenue	$	297	$	295	$	413	$	710	$	726
		Cost of service revenue	1,930		1,905		2,747		4,677		4,794
		Research and development	3,990		3,934		5,532		9,522		9,820
		Sales and marketing	4,672		5,275		6,889		11,562		12,779
		General and administrative	2,668		3,477		4,378		7,045		7,965
		Total share-based compensation expense	$	13,557	$	14,886	$	19,959	$	33,516	$	36,084
(2)	Amortization expense related to acquired software and product technology, tradenames, customer relationships included in these amounts is as follows:

		Cost of product revenue	$	551	$	996	$	550	$	1,101	$	1,991
		Operating expenses	11,162		11,642		11,119		22,281		23,256
		Total amortization expense	$	11,713	$	12,638	$	11,669	$	23,382	$	25,247



















(3)	Acquisition related depreciation expense included in these amounts is as follows:
		Cost of product revenue	$	1	$	2	$	2	$	3	$	4
		Cost of service revenue	—		—		—		—		—
		Research and development	7		7		8		15		15
		Sales and marketing	2		2		2		4		4
		General and administrative	1		—		—		1		—
		Total acquisition related depreciation expense	$	11	$	11	$	12	$	23	$	23
























(4)	Executive transition costs included in these amounts is as follows:
		General and administrative	$	—	$	—	$	959	$	959	$	—
			$	—	$	—	$	959	$	959	$	—
(5)	Total income tax adjustment included in this amount is as follows:
		Tax effect of non-GAAP adjustments above	$	(6,336)	$	(5,409)	$	(4,712)	$	(11,048)	$	(18,804)

		Total income tax adjustments	$	(6,336)	$	(5,409)	$	(4,712)	$	(11,048)	$	(18,804)


NETSCOUT SYSTEMS, INC.
Reconciliation of Current GAAP to Current and Historical Non-GAAP Financial Measures -
Non-GAAP EBITDA from Operations
(Dollars in thousands)
(Unaudited)

	Three Months Ended						Three Months Ended			Six Months Ended
	September 30,						June 30,			September 30,
	2025			2024			2025			2025			2024

Income (loss) from operations (GAAP)	$	32,486		$	14,123		$	(6,564)		$	25,922		$	(449,201)
Income (loss) from operations (GAAP) as a % of revenue	14.8		%	7.4		%	(3.5)		%	6.4		%	(122.8)		%
Previous adjustments to determine non-GAAP income from operations	25,585			29,944			33,128			58,713			507,293
Non-GAAP Income from operations	$	58,071		$	44,067		$	26,564		$	84,635		$	58,092
Depreciation excluding acquisition related-depreciation expense	2,630			3,451			2,776			5,406			7,235
Non-GAAP EBITDA from operations	$	60,701		$	47,518		$	29,340		$	90,041		$	65,327
Non-GAAP EBITDA from operations as a % of revenue	27.7		%	24.9		%	15.7		%	22.2		%	17.9		%


NETSCOUT SYSTEMS, INC.
Reconciliation of GAAP Financial Outlook to Non-GAAP Financial Outlook
(Unaudited)
(In millions, except for net income per share - diluted)

	FY'25		FY'26
Revenue	$	822.7	~ $830 to ~$870





	FY'25		FY'26
GAAP net income (loss)	$	(366.9)	~$83 to ~$90


Amortization of intangible assets	$	50.4	~$47
Share-based compensation expenses	$	64.8	~$62
Acquisition related depreciation expense	$	—	—
Executive transition costs	$	—	~ $1
Restructuring charges	$	20.5	~$1
Loss on Debt Extinguishment	$	1.1	—
Goodwill impairment	$	427.0	—


Total adjustments	$	563.8	~$111
Related impact of adjustments on income tax	$	(36.5)	(~$23)
Non-GAAP net income	$	160.4	~$171 to ~$178

GAAP net income (loss) per share (diluted)	$	(5.12)	~$1.13 to ~$1.23
Non-GAAP net income per share (diluted)	$	2.22	~$2.35 to ~$2.45

Average weighted shares outstanding (diluted GAAP)	71.6		~73
Average weighted shares outstanding (diluted Non-GAAP)	72.2		~73
*Figures in table may not total due to rounding


Contacts:	Investors	Media
	Scott Dressel	Chris Lucas
	AVP, Corporate Finance	AVP, Marketing & Corporate Communications
	978-614-4000	978-614-4124
	IR@netscout.com	Chris.Lucas@netscout.com