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Netscout Systems NTCT Service — Cost Of Revenue

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Other financials

Income statement

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Revenue$210.4M+12.7%
Gross profit$165.9M+15.8%
Operating income$14.5M+321%
Net income$21.8M+694%
EPS (diluted)$0.29+680%

Balance sheet

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Cash & equivalents$552.8M+12.9%
Total debt$40.0M-3.7%
Total equity$1.7B+7.5%
Total assets$2.3B+7.1%

Cash flow

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Operating cash flow$50.8M-31.0%
CapEx$3.5M+85.9%
Free cash flow$47.3M-34.0%

Valuation

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Market cap$2.92B+85.5%
Enterprise value$2.4B+114%
P/E24.1×-4.9×
P/S3.3×+1.4×

Profitability

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Gross margin79.8%+1.1pp
Operating margin14.8%+6.5pp
Net margin13.7%+7.2pp
FCF margin29.6%-0.6pp

Returns & leverage

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Return on equity7.5%+3.9pp
Debt / equity0.0×
Current ratio1.8×+0.1×

Where this comes from

Reported directly by Netscout Systems in its filing.

Tagged under the XBRL concept us-gaap:CostOfRevenue.

The source filing: Netscout Systems’s 10-Q, filed August 6, 2026.

Filed
Aug 6, 2026, 4:12 PM EDT
Fiscal quarter
Q1 FY2027
Calendar quarter
Q2 2026
Accession
0001078075-26-000108
Line itemThree Months Ended / June 30, 2026Three Months Ended / June 30, 2025
Total revenue210,423186,747
Cost of revenue:
Product9,67211,925
Service34,81831,497
Total cost of revenue44,49043,422
Gross profit165,933143,325
Operating expenses:
Research and development42,35439,789

Item 1. Unaudited Financial Statements

FAQ

What is Netscout Systems's service — cost of revenue?
Netscout Systems (NTCT) reported service — cost of revenue of $34.82M in Q2 2026.
How has Netscout Systems's service — cost of revenue changed year-over-year?
Netscout Systems's service — cost of revenue increased by 10.5% year-over-year, from $31.5M to $34.82M.
What is the long-term trend for Netscout Systems's service — cost of revenue?
Over 4 years (2022 to 2026), Netscout Systems's service — cost of revenue has grown at a 0.6% compound annual growth rate (CAGR), from $123.46M to $126.39M.
What does service — cost of revenue mean?
This metric captures the direct costs incurred to deliver service-based solutions, including personnel expenses for support staff, infrastructure maintenance, and other service-related delivery costs. It is a critical measure of operational efficiency within the service segment, reflecting the company's ability to scale service delivery while managing associated overhead. Analyzing this figure allows stakeholders to assess the gross margin profile and cost-efficiency of the service business unit.

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