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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 6 Months Ended
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Sep. 30, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | NOTE 9 – DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES NetScout operates internationally and, in the normal course of business, is exposed to fluctuations in foreign currency exchange rates. The exposures result from costs that are denominated in currencies other than the U.S. Dollar, primarily the Euro, British Pound, Canadian Dollar, and Indian Rupee. The Company manages its foreign cash flow risk by hedging forecasted cash flows for operating expenses denominated in foreign currencies for up to twelve months, within specified guidelines through the use of forward contracts. The Company enters into foreign currency exchange contracts to hedge cash flow exposures from costs that are denominated in currencies other than the U.S. Dollar. These hedges are designated as cash flow hedges at inception. NetScout also periodically enters into forward contracts to manage exchange rate risks associated with certain third-party transactions and for which the Company does not elect hedge accounting treatment as there is no difference in the timing of gain or loss recognition on the hedging instrument and the hedged item. All of the Company's derivative instruments are utilized for risk management purposes, and the Company does not use derivatives for speculative trading purposes. These contracts will mature over the next twelve months and are expected to impact earnings on or before maturity. The notional amounts and fair values of derivative instruments in the consolidated balance sheets at September 30, 2025 and March 31, 2025 were as follows (in thousands):
| Notional Amounts (a) |  | Prepaid Expenses and Other Current Assets |  | Accrued Other
| September 30, 2025 |  | March 31, 2025 |  | September 30, 2025 |  | March 31, 2025 |  | September 30, 2025 |  | March 31, 2025
Derivatives Designated as Hedging Instruments: |  |  |  |  |  |  |  |  |  |  |
Forward contracts | $ | 11,621 |  |  | $ | 10,649 |  |  | $ | 91 |  |  | $ | 197 |  |  | $ | 137 |  |  | $ | 55 |
|  |  |  |  | $ | 91 |  |  | $ | 197 |  |  | $ | 137 |  |  | $ | 55 |
(a) Notional amounts represent the gross contract/notional amount of the derivatives outstanding. The following table provides the effect that foreign exchange forward contracts designated as hedging instruments had on other comprehensive (loss) income and results of operations for the three months ended September 30, 2025 and 2024 (in thousands):
| Gain (Loss) Recognized in OCI on Derivative (a) |  | Gain (Loss) Reclassified from Accumulated OCI into Income (b) |  |
September 30, 2025 |  | September 30, 2024 |  | Location |  | September 30, 2025 |  | September 30, 2024 |  |  |  |  |  |
Forward contracts | $ | (182) |  |  | $ | 275 |  |  | Research and development |  | $ | 11 |  |  | $ | 3 |  |  |  |  |  |  |
|  |  |  |  | Sales and marketing |  | (157) |  |  | (18) |  |  |  |  |  |  |
| $ | (182) |  |  | $ | 275 |  |  |  |  | $ | (146) |  |  | $ | (15) |  |  |  |  |  |  |
(a)The amount represents the change in fair value of derivative contracts due to changes in spot rates. (b)The amount represents reclassification from other comprehensive income (loss) to earnings that occurs when the hedged item affects earnings. The following table provides the effect that foreign exchange forward contracts designated as hedging instruments had on other comprehensive income and results of operations for the six months ended September 30, 2025 and 2024 (in thousands):
| Gain (Loss) Recognized in OCI on Derivative (a) |  | Gain (Loss) Reclassified from Accumulated OCI into Income (b)
| September 30, 2025 |  | September 30, 2024 |  | Location |  | September 30, 2025 |  | September 30, 2024
Forward contracts |  | $ | 148 |  |  | $ | 159 |  |  | Research and development |  | $ | 8 |  |  | $ | 4 |
|  |  |  |  |  | Sales and marketing |  | (325) |  |  | 40 |
|  | $ | 148 |  |  | $ | 159 |  |  |  |  | $ | (317) |  |  | $ | 44 |
(a)The amount represents the change in fair value of derivative contracts due to changes in spot rates. (b)The amount represents reclassification from other comprehensive income (loss) to earnings that occurs when the hedged item affects earnings. The Company had no forward exchange contracts not designated as hedging instruments during the six months ended September 30, 2025 and 2024.

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