NetScout (NTCT) Boosts Revenue, Embraces AI to Tackle Cyber Threats

NetScout Systems, Inc. (NASDAQ:NTCT) is one of the most undervalued cybersecurity stocks to buy now. NetScout Systems, Inc. (NASDAQ:NTCT) reported its Q1 Fiscal Year 2026 (ended June 30), earnings report on August 7. The company reported a revenue of $186.7 million for the quarter, a mild 7%  increase on a year-over-year basis. However, product revenue grew 19.28% year-over-year, to $73 million. As of the end of the quarter, the company had a solid backlog of $30.9 million. The company’s service revenue remained flat at $113.8 million.NetScout (NTCT) Boosts Revenue, Embraces AI to Tackle Cyber Threats

A data engineer focusing intently on a glowing computer screen, with lines of code streaming down the screen.

NetScout Systems, Inc. (NASDAQ:NTCT)’s net loss showed a drastic improvement to $6.6 million in Q1 FY2026, compared to the $463.3 million loss in the same quarter last year. The company’s full year FY 2026 revenue guidance remain in the range of $825 million to $865 million, which would represent a 0%-5% growth.

A few weeks back, the company announced a flurry of AI-backed improvements to its Arbor Edge Defense and DDoS (Distributed Denial of Service) Solutions, to recognize and mitigate threats in real time. This improvement leverages AI to automate defenses against the ever-sophisticated attacks. According to the company, this helps clients mitigate up to 80% of all DDoS attacks without the need for human analysis.

While we acknowledge the potential of NTCT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 10 Best Battery Technology Stocks to Buy Right Now and 10 Best Military Tech Stocks to Buy Now

Disclosure: None.

View Comments