Zacks Industry Outlook Spotlights NetScout Systems, Digi International, and Lantronix
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 21 2025
0mins
Should l Buy NTCT?
Source: NASDAQ.COM
Industry Growth Drivers: The Computer Networking industry is poised for growth due to advancements in cloud computing, network security, AI technology, and the rapid deployment of 5G, which is increasing demand for robust networking infrastructure and innovative products.
Key Players and Performance: Companies like NetScout Systems, Digi International, and Lantronix are capitalizing on the AI infrastructure opportunity, with strong revenue growth and positive market performance, as evidenced by their recent financial results and stock gains.
Macroeconomic Challenges: Despite the industry's bright prospects, concerns over global macroeconomic conditions, supply-chain volatility, and tariff issues, particularly between the U.S. and China, pose risks to pricing power and margin expansion.
Zacks Industry Rank: The Zacks Computer Networking industry ranks #38, indicating strong near-term prospects, with the industry outperforming the S&P 500 and broader technology sector over the past year.
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Analyst Views on NTCT
Wall Street analysts forecast NTCT stock price to rise
2 Analyst Rating
1 Buy
1 Hold
0 Sell
Moderate Buy
Current: 28.510
Low
29.00
Averages
32.00
High
35.00
Current: 28.510
Low
29.00
Averages
32.00
High
35.00
About NTCT
Netscout Systems, Inc. is a provider of enterprise performance management, carrier service assurance, cybersecurity, and defends their networks from distributed denial of service (DDoS) protection solutions. The Company’s nGeniusONE management software is used to support its service provider, enterprise, and government customers, enabling them to predict, preempt, and resolve network and service delivery problems while facilitating the optimization and capacity planning of their network infrastructures. Its ISNG platform provides real-time collection and analysis of information-rich, high-volume packet-flow data from across the network that is displayed through the nGeniusONE Service Assurance Solution. Its portfolio of DDoS solutions offers complete deployment flexibility spanning on-premises offerings and cloud-based capabilities to meet a broad array of customer needs, as well as specialized analytics and comprehensive threat intelligence information.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Quantum Secure Encryption Corp Announces Webinar on Post-Quantum Security
- Cybersecurity Trends: Gartner's 2026 cybersecurity trends report indicates that 75% of enterprise intrusions now involve compromised identity credentials, highlighting a critical shift towards identity-first attack methods that legacy defenses cannot adequately address, necessitating a strategic overhaul in security approaches.
- Market Growth Forecast: Gartner forecasts that sovereign cloud IaaS spending will reach $80 billion in 2026, with Europe, the Middle East, and Asia-Pacific experiencing the highest growth, underscoring the urgency for enterprises to adapt to accelerating data residency mandates to maintain competitiveness.
- Educational Webinar: QSE Corp is set to host a webinar titled “The Post-Quantum Shift: What Changes? What Fails? What to Do Now?” on February 17, 2026, aimed at helping organizations understand the implications of quantum computing on traditional encryption, expected to attract significant participation from IT leaders and security professionals.
- International Expansion: QSE has renewed its enterprise agreement with The Muthoot Group in India for approximately 14,000 user licenses and entered South America with a three-year security agreement supporting three Brazilian government clients, marking its initial commercial presence in the region.
See More
Quantum Secure Encryption Corp Announces Webinar on Post-Quantum Security
- Shift in Security Focus: Gartner's report indicates that 75% of enterprise intrusions now involve compromised identity credentials, highlighting the need for companies to transition from traditional perimeter defenses to identity-first security measures to combat emerging cyber threats.
- Webinar Announcement: QSE is set to host a webinar titled “The Post-Quantum Shift: What Changes? What Fails? What to Do Now?” on February 17, 2026, aimed at helping organizations understand the impact of quantum computing on traditional encryption methods, expected to attract a wide audience of IT leaders and security professionals.
- Global Expansion Strategy: QSE has recently renewed its enterprise agreement with The Muthoot Group in India, covering approximately 14,000 user licenses, and has entered South America with a three-year security agreement supporting three Brazilian government clients, marking its initial commercial presence in the region.
- Market Outlook: With the global post-quantum cryptography market projected to reach $17.69 billion by 2034, QSE is building both the technology platform and market education infrastructure to capture enterprise adoption opportunities as quantum threats escalate.
See More
NetScout Exceeds Q3 Earnings Expectations with Strong Revenue Growth
- Strong Performance: NetScout reported total revenue of $250.7 million for Q3, consistent with last year and exceeding expectations, reflecting robust growth in both cybersecurity and service assurance segments.
- Improved Profitability: Diluted earnings per share reached $1, marking a 6.4% year-over-year increase, while gross profit margin stood at 82.8% and operating margin rose to 35.9%, indicating ongoing improvements in cost control and operational efficiency.
- Optimistic Outlook: The company raised its fiscal year 2026 revenue forecast to between $835 million and $870 million, representing a 3.6% year-over-year growth, and increased non-GAAP earnings per share guidance to between $2.37 and $2.45, reflecting management's confidence in future demand.
- Innovation-Driven Growth: The launch of the Omnis AI sensor and the upcoming nGenius Edge Sensor 795 showcases NetScout's technological expansion in remote observability and next-generation WiFi, further solidifying its market leadership position.
See More
NetScout Q3 Earnings Exceed Expectations
- Strong Earnings Performance: NetScout reported a Q3 non-GAAP EPS of $1.00, beating expectations by $0.18, which reflects the company's robust profitability and boosts investor confidence.
- Slight Revenue Decline: Revenue of $250.7 million, down 0.5% year-over-year, still exceeded market expectations by $17.01 million, indicating the company's ability to maintain relatively stable revenue in a competitive market.
- Stable Adjusted EBITDA: The adjusted EBITDA for Q3 was $91.7 million, representing 36.6% of quarterly revenue, slightly down from $92.8 million last year, highlighting challenges in cost management.
- Upgraded Financial Outlook: Based on accelerating orders and the current pipeline, NetScout raised its revenue outlook for FY 2026 to a range of $835 million to $870 million, reflecting confidence in future growth with an expected year-over-year increase of 3.6%.
See More
NetScout Systems to Announce Q3 Earnings on February 5th
- Earnings Announcement: NetScout Systems is set to release its Q3 earnings on February 5th before market open, with consensus EPS estimate at $0.82, reflecting a 12.8% year-over-year decline, and revenue estimate at $233.69 million, down 7.3% year-over-year, indicating some market challenges ahead.
- Historical Performance: Over the past two years, NetScout has beaten EPS and revenue estimates 88% of the time, demonstrating a level of stability and reliability in financial performance, despite current downward pressures.
- Estimate Revisions: In the last three months, there have been no upward revisions to EPS estimates, with two downward adjustments, and similarly, revenue estimates have seen no upward revisions and two downward adjustments, suggesting a cautious market outlook on the company's future performance.
- Market Demand Analysis: Despite the current unfavorable earnings outlook, NetScout has raised its FY26 revenue forecast to $870 million, driven by strong federal demand and accelerated orders, indicating growth potential in specific market segments.
See More
NETSCOUT Receives 2025 Global Company of the Year Award for Excellence in Network Monitoring
- Market Leadership: NETSCOUT has been awarded the 2025 Global Company of the Year for its outstanding achievements in real-time visibility, performance assurance, and network intelligence, highlighting its ability to deliver measurable outcomes in complex environments.
- Excellence in Strategy Execution: By effectively aligning with market demands, NETSCOUT has demonstrated excellence in both strategic effectiveness and execution, securing its leadership position in the rapidly evolving network monitoring landscape.
- Innovation-Driven Growth: NETSCOUT's nGenius and Omnis solutions provide end-to-end network and application performance monitoring, leveraging real network traffic to deliver high-fidelity insights that accelerate troubleshooting and support predictive automated operations, enhancing customer experience.
- Customer-First Culture: Through flexible licensing models and comprehensive global support services, NETSCOUT enhances customer experience, ensuring consistent service availability and long-term value across diverse industries, including healthcare, manufacturing, financial services, and telecommunications.
See More
Quantum Secure Encryption Corp Announces Webinar on Post-Quantum Security
- Cybersecurity Trends: Gartner's 2026 cybersecurity trends report indicates that 75% of enterprise intrusions now involve compromised identity credentials, highlighting a critical shift towards identity-first attack methods that legacy defenses cannot adequately address, necessitating a strategic overhaul in security approaches.
- Market Growth Forecast: Gartner forecasts that sovereign cloud IaaS spending will reach $80 billion in 2026, with Europe, the Middle East, and Asia-Pacific experiencing the highest growth, underscoring the urgency for enterprises to adapt to accelerating data residency mandates to maintain competitiveness.
- Educational Webinar: QSE Corp is set to host a webinar titled “The Post-Quantum Shift: What Changes? What Fails? What to Do Now?” on February 17, 2026, aimed at helping organizations understand the implications of quantum computing on traditional encryption, expected to attract significant participation from IT leaders and security professionals.
- International Expansion: QSE has renewed its enterprise agreement with The Muthoot Group in India for approximately 14,000 user licenses and entered South America with a three-year security agreement supporting three Brazilian government clients, marking its initial commercial presence in the region.
See More
Quantum Secure Encryption Corp Announces Webinar on Post-Quantum Security
- Shift in Security Focus: Gartner's report indicates that 75% of enterprise intrusions now involve compromised identity credentials, highlighting the need for companies to transition from traditional perimeter defenses to identity-first security measures to combat emerging cyber threats.
- Webinar Announcement: QSE is set to host a webinar titled “The Post-Quantum Shift: What Changes? What Fails? What to Do Now?” on February 17, 2026, aimed at helping organizations understand the impact of quantum computing on traditional encryption methods, expected to attract a wide audience of IT leaders and security professionals.
- Global Expansion Strategy: QSE has recently renewed its enterprise agreement with The Muthoot Group in India, covering approximately 14,000 user licenses, and has entered South America with a three-year security agreement supporting three Brazilian government clients, marking its initial commercial presence in the region.
- Market Outlook: With the global post-quantum cryptography market projected to reach $17.69 billion by 2034, QSE is building both the technology platform and market education infrastructure to capture enterprise adoption opportunities as quantum threats escalate.
See More
NetScout Exceeds Q3 Earnings Expectations with Strong Revenue Growth
- Strong Performance: NetScout reported total revenue of $250.7 million for Q3, consistent with last year and exceeding expectations, reflecting robust growth in both cybersecurity and service assurance segments.
- Improved Profitability: Diluted earnings per share reached $1, marking a 6.4% year-over-year increase, while gross profit margin stood at 82.8% and operating margin rose to 35.9%, indicating ongoing improvements in cost control and operational efficiency.
- Optimistic Outlook: The company raised its fiscal year 2026 revenue forecast to between $835 million and $870 million, representing a 3.6% year-over-year growth, and increased non-GAAP earnings per share guidance to between $2.37 and $2.45, reflecting management's confidence in future demand.
- Innovation-Driven Growth: The launch of the Omnis AI sensor and the upcoming nGenius Edge Sensor 795 showcases NetScout's technological expansion in remote observability and next-generation WiFi, further solidifying its market leadership position.
See More
NetScout Q3 Earnings Exceed Expectations
- Strong Earnings Performance: NetScout reported a Q3 non-GAAP EPS of $1.00, beating expectations by $0.18, which reflects the company's robust profitability and boosts investor confidence.
- Slight Revenue Decline: Revenue of $250.7 million, down 0.5% year-over-year, still exceeded market expectations by $17.01 million, indicating the company's ability to maintain relatively stable revenue in a competitive market.
- Stable Adjusted EBITDA: The adjusted EBITDA for Q3 was $91.7 million, representing 36.6% of quarterly revenue, slightly down from $92.8 million last year, highlighting challenges in cost management.
- Upgraded Financial Outlook: Based on accelerating orders and the current pipeline, NetScout raised its revenue outlook for FY 2026 to a range of $835 million to $870 million, reflecting confidence in future growth with an expected year-over-year increase of 3.6%.
See More
NetScout Systems to Announce Q3 Earnings on February 5th
- Earnings Announcement: NetScout Systems is set to release its Q3 earnings on February 5th before market open, with consensus EPS estimate at $0.82, reflecting a 12.8% year-over-year decline, and revenue estimate at $233.69 million, down 7.3% year-over-year, indicating some market challenges ahead.
- Historical Performance: Over the past two years, NetScout has beaten EPS and revenue estimates 88% of the time, demonstrating a level of stability and reliability in financial performance, despite current downward pressures.
- Estimate Revisions: In the last three months, there have been no upward revisions to EPS estimates, with two downward adjustments, and similarly, revenue estimates have seen no upward revisions and two downward adjustments, suggesting a cautious market outlook on the company's future performance.
- Market Demand Analysis: Despite the current unfavorable earnings outlook, NetScout has raised its FY26 revenue forecast to $870 million, driven by strong federal demand and accelerated orders, indicating growth potential in specific market segments.
See More
NETSCOUT Receives 2025 Global Company of the Year Award for Excellence in Network Monitoring
- Market Leadership: NETSCOUT has been awarded the 2025 Global Company of the Year for its outstanding achievements in real-time visibility, performance assurance, and network intelligence, highlighting its ability to deliver measurable outcomes in complex environments.
- Excellence in Strategy Execution: By effectively aligning with market demands, NETSCOUT has demonstrated excellence in both strategic effectiveness and execution, securing its leadership position in the rapidly evolving network monitoring landscape.
- Innovation-Driven Growth: NETSCOUT's nGenius and Omnis solutions provide end-to-end network and application performance monitoring, leveraging real network traffic to deliver high-fidelity insights that accelerate troubleshooting and support predictive automated operations, enhancing customer experience.
- Customer-First Culture: Through flexible licensing models and comprehensive global support services, NETSCOUT enhances customer experience, ensuring consistent service availability and long-term value across diverse industries, including healthcare, manufacturing, financial services, and telecommunications.
See More
