NETSCOUT SYSTEMS INC

In addition to the other information set forth in this report, you should carefully consider the factors discussed in Part I, Item 1A. “Risk Factors” in our Annual Report. The risks discussed in our Annual Report could materially affect our business, financial condition and future results. Except as discussed below, there have been no material changes to those risk factors since we filed our Annual Report. The risks described here and in our Annual Report are not the only risks facing us. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially and adversely affect our business, financial condition or operating results.

Risks Related to Our Business and Industry

Our Use of Artificial Intelligence and Machine Learning May Not Achieve Intended Benefits, and Could Adversely Affect Our Business.

We are increasingly exploring and integrating artificial intelligence (“AI”) and machine learning ("ML") technologies into our products, services, and internal operations to enhance performance, and automate processes. However, the use of AI/ML presents various risks and uncertainties that could adversely affect our business, operations, reputation, or financial results.

AI/ML technologies, including those developed by third parties and integrated into our offerings or used by our workforce or vendors, are subject to a variety of laws, including those related to data privacy, cybersecurity, and intellectual property, as well as increasing regulation and scrutiny. For example, AI/ML systems may inadvertently expose sensitive or proprietary data (including confidential, competitive, or personal information), generate inaccurate or biased outputs, or rely on training data that is incomplete, outdated, or legally restricted. While we have policies, protocols, and procedures in place, the risks may be heightened when AI/ML tools are used without appropriate oversight or outside of established governance frameworks

The evolving regulatory landscape surrounding AI/ML may impose new compliance obligations, increase operational complexity, or limit our ability to develop or deploy AI-enabled solutions. Failure to comply with these regulations, or with contractual or ethical standards related to AI/ML, could result in reputational harm, regulatory investigations, or legal liability.

In addition, if we are unable to effectively integrate AI/ML into our products and services, or if our competitors adopt AI/ML more rapidly or successfully, our competitive position may be adversely affected. The use of third-party AI/ML services also introduces risks related to service availability, cost volatility, and alignment with our business and compliance requirements.