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NetApp, Inc. (NTAP) Presents at Citi's 2026 Global TMT Conference Transcript

Key Takeaways NetApp shares climbed 14.8% in three months as flash growth, AI deals and earnings momentum strengthened.NetApp added about 350 AI and data lake modernization deals as customers shifted into production workloads.NetApp raised fiscal 2027 revenue guidance to $7.975-$8.225 billion and earnings to $9.73-$10.03. NetApp, Inc. (NTAP - Free Report) shares have gained 14.8% over the past three months as all-flash growth, AI-related deal activity and earnings momentum strengthened. Management also raised its fiscal 2027 revenue and earnings outlook after a record first quarter.

The question now is whether those fundamentals can support the advance while investors weigh higher component costs, a richer product mix and purchase timing. The stock's near-term momentum indicators remain favorable, but the recent run raises the bar for execution.

NetApp's AI Storage Momentum Supports the RunAll-flash revenues rose 46.6% year over year to a record $1.31 billion in first-quarter fiscal 2027. All-flash and Public Cloud together represented 75% of quarterly net revenues, increasing the contribution from NetApp's strategic storage and cloud offerings.

NetApp added approximately 350 AI and data lake modernization deals during the quarter. Management said deal sizes increased as customers moved from proof-of-concept projects into production workloads. That shift shows AI activity extending beyond pilot deployments and into larger production environments.

NTAP's Q1 Beat Adds Fundamental SupportNet revenues increased 29.9% to $2.025 billion and beat the Zacks Consensus Estimate of $1.843 billion by 9.9%. Non-GAAP earnings climbed 66.5% to $2.58 per share, exceeding the $2.13 consensus mark by 21.1%.

The extra week contributed about $65 million to revenues, mainly through support and Public Cloud. Excluding that benefit, revenues still grew 26% year over year. Non-GAAP operating margin expanded to 31.9% from 25.7%, reflecting substantial operating leverage in the quarter.

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NetApp's Raised Outlook Extends the Growth CaseManagement raised fiscal 2027 revenue guidance to $7.975-$8.225 billion. The $8.10 billion midpoint implies 17% year-over-year growth and the revised outlook is $650 million above prior guidance, extending the stronger growth outlook beyond the first quarter.

Non-GAAP earnings guidance increased to $9.73-$10.03 per share. The $9.88 midpoint represents 22% growth from fiscal 2026. The current-fiscal-year earnings estimate has also moved 2.5% higher over the past four weeks, adding support to the earnings trend.

NTAP Faces Margin and Timing Risks After the GainProduct gross margin fell 150 basis points sequentially to 54.6% as component costs increased. NetApp expects second-quarter non-GAAP gross margin of 67-68% and fiscal 2027 gross margin of 68.1-69.1%, with a richer product mix expected to limit consolidated margins.

Demand timing is another risk. Management saw pockets of accelerated purchasing among larger customers, which can shift revenues between periods and make quarterly comparisons uneven. Competition also remains active as vendors invest in AI-ready storage.

Dell Technologies Inc. (DELL - Free Report) is expanding its AI Data Platform with file, object and parallel-file storage for enterprise AI workloads. Hewlett Packard Enterprise Company (HPE - Free Report) is advancing Alletra Storage MP X10000 with file and object capabilities for AI data pipelines. These investments keep product differentiation and pricing execution important for NetApp.

NetApp's Momentum Signal Stays StrongNTAP's 14.8% three-month gain is backed by faster flash growth, production-stage AI activity, an earnings beat and higher fiscal 2027 guidance, while margin pressure and purchase timing remain offsets. The stock currently carries a Zacks Rank #2 (Buy), reflecting favorable short-term earnings-estimate revision trends. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

NetApp has a Momentum Score of A, pointing to favorable momentum characteristics. Its Growth Score of C, Value Score of D and VGM Score of C are less supportive.

Key Takeaways NetApp's Q1 revenues rose 29.9% to $2.025B as non-GAAP EPS climbed 66.5% to $2.58.NTAP's all-flash revenues jumped 46.6% to $1.309B, while Public Cloud rose 28% to $206M.NetApp raised FY2027 revenue guidance to $7.975B-$8.225B and EPS guidance to $9.73-$10.03. NetApp, Inc. (NTAP - Free Report) opened fiscal 2027 with revenue and earnings well above expectations, while management materially raised its full-year outlook. The quarter sharpened the investment focus on whether AI-related storage demand is lifting the company’s underlying growth rate.

Flash, Public Cloud and broader modernization demand all contributed to the advance. The next test is whether that momentum can persist as product mix pressures gross margin and customer purchasing patterns create tougher comparisons later in the year.

NetApp's Q1 Beat Resets the FY2027 BaselineFiscal first-quarter revenues rose 29.9% year over year to $2.025 billion, topping the Zacks Consensus Estimate by 9.9%. Non-GAAP earnings increased 66.5% to $2.58 per share and exceeded the consensus mark by 21.1%.

The quarter included an extra week that contributed about $65 million to revenues, mainly in support and Public Cloud. Even after adjusting for that benefit, revenues increased 26%, indicating that the beat was not solely a calendar effect.

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NTAP's Flash and Cloud Mix Drives the SurpriseAll-flash array revenues jumped 46.6% to a record $1.309 billion, while Public Cloud revenues increased 28% to a record $206 million. Public Cloud still grew 19% excluding the extra week. Together, all-flash and Public Cloud represented 75% of quarterly net revenues. NetApp also added about 350 AI and data lake modernization deals, with larger deal sizes as customers moved from pilots to production.

Competition remains active around the same AI data opportunity. Dell Technologies Inc. (DELL - Free Report) reported record fiscal second-quarter 2027 storage revenue of $4.9 billion, up 26%. Hewlett Packard Enterprise Company (HPE - Free Report) is expanding HPE Alletra Storage MP X10000 with native file storage alongside object storage for AI data pipelines, keeping pressure on storage vendors to sustain product differentiation.

NetApp Raises Revenue and EPS GuidanceNetApp raised fiscal 2027 revenue guidance to $7.975-$8.225 billion. At the $8.1 billion midpoint, the outlook implies 17% year-over-year growth and is $650 million above the midpoint of the prior guidance.

Non-GAAP earnings guidance increased to $9.73-$10.03 per share, with the $9.88 midpoint representing 22% growth. Management also lifted non-GAAP operating margin guidance to 30.3%-31.3%, suggesting that operating leverage can remain meaningful if demand holds.

NTAP's Margin Outlook Tests the Quality of GrowthThe stronger top-line mix has a cost. First-quarter non-GAAP gross margin slipped 50 basis points year over year to 70.6%, while product gross margin fell 150 basis points sequentially to 54.6% as component costs rose. Product revenues were 49% of total revenues, up from 42% a year earlier, contributing to the consolidated margin pressure.

For fiscal 2027, non-GAAP gross margin is expected at 68.1%-69.1%, reflecting a richer product mix. Free cash flow fell 35.3% year over year to $401 million in the first quarter, while accelerated purchasing by some large customers can make quarterly growth and cash conversion less even.

NetApp's Momentum Signals Stay ConstructiveThe earnings event supports a higher near-term growth baseline, but durability still depends on continued AI deal conversion, cloud expansion and efficient margin execution. The Zacks Consensus Estimate for earnings in the current fiscal year has increased 2.5% over the past four weeks, adding support to the near-term setup.

NTAP currently carries a Zacks Rank #2 (Buy), a favorable short-term signal tied to earnings estimate revisions, and a Momentum Score of A. Its Growth Score of C, Value Score of D and VGM Score of C are less supportive.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

While mega-cap AI stocks tend to grab most of the attention, investors shouldn't overlook Ciena (CIEN - Free Report) ) and NetApp (NTAP - Free Report) ) following impressive earnings reports this week.

Operating in different corners of the technology infrastructure market, Ciena's high-speed optical networking equipment and NetApp's intelligent data-storage platforms are increasingly benefiting from the massive infrastructure requirements surrounding AI and cloud computing.

Even better, both companies crushed quarterly earnings expectations and raised their outlooks, while currently sporting a Zacks Rank #2 (Buy).

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Ciena's AI-Fueled Networking Demand AcceleratesCiena delivered a blockbuster report for its fiscal third quarter, with a quarterly peak in adjusted earnings at $2.11 per share, soaring 215% from $0.67 a year ago and topping the Zacks EPS Consensus of $1.74 by more than 21%.

Quarterly revenue surged 37% to a record $1.67 billion and topped estimates of $1.64 billion.

More importantly, the optical networking specialist is seeing enormous demand as cloud providers upgrade the high-speed networks needed to connect AI data centers.

Revenue from cloud providers jumped 82% year over year, while sales of Ciena's Reconfigurable Line System (RLS) and Waveserver platforms climbed more than 55% and pluggable products more than doubled.

Management subsequently raised its fiscal 2026 revenue guidance to approximately $6.42 billion, representing around 35% growth at the midpoint, and expects at least 30% revenue growth in  FY27. Ciena also expects its backlog to exceed $10 billion by fiscal year-end, highlighting the depth of demand.

Interestingly, CIEN shares still fell over 10% following the report as investors focused on component-supply constraints and near-term margin expectations. However, with demand currently exceeding Ciena's ability to secure components, the sell-off may overshadow an increasingly powerful long-term growth story and end up being a buy-the-dip opportunity.

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NetApp Also Delivers Record Results & Raises GuidanceNetApp was equally impressive, posting record results for its fiscal first quarter with Q1 revenue of $2.02 billion, up 30% YoY and comfortably beating estimates of $1.84 billion by nearly 10%.

Meanwhile, Q1 adjusted EPS surged 66% to a quarterly peak of $2.58, crushing expectations of $2.13 by  21%.

Growth was broad-based, with Hybrid Cloud revenue rising 30% to $1.82 billion and Public Cloud sales increasing 28% to $206 million. Particularly encouraging was record all-flash array revenue of $1.31 billion, up nearly 47%, as customers increasingly deploy NetApp's high-performance storage systems for GPU-intensive AI workloads.

NetApp also landed roughly 350 AI and data-lake modernization deals during the quarter, showing that enterprise AI projects are increasingly moving from experimentation toward production workloads.

Reflecting this momentum, management significantly raised its current fiscal 2027 revenue guidance to $7.98-$8.23 billion, with adjusted EPS now expected at $9.73-$10.03.

The $8.1 billion sales midpoint implies roughly 17% annual growth and is $650 million above NetApp's previous outlook, while the $9.88 EPS midpoint represents approximately 22% growth from FY26 and is nearly 12% above its prior guidance midpoint of $8.85.

Image Source: Zacks Investment Research

Bottom LineCiena and NetApp offer investors two different ways to capitalize on the AI infrastructure boom. Ciena is benefiting from surging demand for the optical networking equipment needed to connect increasingly powerful data centers, while NetApp is supplying the storage and data infrastructure required to operate AI workloads.

Most importantly, their growth outlooks strengthened considerably after earnings. With CIEN and NTAP both currently sporting a Zacks Rank #2 (Buy), these two tech stocks shouldn't be overlooked as earnings estimates are likely to keep moving higher following their impressive quarterly performances.

B. Metzler seel. Sohn & Co. AG lessened its stake in shares of NetApp, Inc. (NASDAQ:NTAP – Free Report) by 43.5% in the second quarter, according to its most recent Form 13F filing with the SEC. The fund owned 40,897 shares of the data storage provider’s stock after selling 31,445 shares during the period. B. Metzler seel. Sohn & Co. AG’s holdings in NetApp were worth $6,329,000 as of its most recent SEC filing.

Several other hedge funds have also added to or reduced their stakes in NTAP. BlackRock Inc. bought a new stake in shares of NetApp in the 2nd quarter worth approximately $2,925,168,000. Primecap Management Co. CA purchased a new position in shares of NetApp during the 2nd quarter valued at $1,395,423,000. Norges Bank purchased a new position in shares of NetApp during the 4th quarter valued at $458,060,000. First Trust Advisors LP grew its stake in shares of NetApp by 127.0% during the 1st quarter. First Trust Advisors LP now owns 3,658,066 shares of the data storage provider’s stock worth $374,549,000 after acquiring an additional 2,046,912 shares during the period. Finally, Legal & General Group Plc bought a new position in shares of NetApp during the 2nd quarter worth $258,093,000. Institutional investors own 92.17% of the company’s stock.

Analyst Ratings Changes Several research firms have recently weighed in on NTAP. Citigroup reduced their target price on shares of NetApp from $209.00 to $190.00 and set a “neutral” rating for the company in a research note on Thursday. Bank of America upped their price target on shares of NetApp from $180.00 to $206.00 and gave the company a “neutral” rating in a research note on Monday. Weiss Ratings raised shares of NetApp from a “hold (c+)” rating to a “buy (b-)” rating in a report on Monday, June 8th. JPMorgan Chase & Co. lifted their price objective on shares of NetApp from $110.00 to $150.00 and gave the company a “neutral” rating in a research note on Friday, May 29th. Finally, Wall Street Zen cut shares of NetApp from a “strong-buy” rating to a “buy” rating in a report on Wednesday, July 29th. Six research analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company. Based on data from MarketBeat.com, NetApp has an average rating of “Hold” and an average target price of $192.07.

Check Out Our Latest Stock Analysis on NetApp NetApp Price Performance Shares of NASDAQ:NTAP opened at $185.38 on Friday. The company has a 50 day moving average of $178.07 and a 200 day moving average of $140.54. The stock has a market cap of $36.38 billion, a P/E ratio of 26.15, a P/E/G ratio of 2.46 and a beta of 1.44. NetApp, Inc. has a 12 month low of $93.69 and a 12 month high of $209.06. The company has a current ratio of 1.44, a quick ratio of 1.39 and a debt-to-equity ratio of 1.84.

NetApp (NASDAQ:NTAP – Get Free Report) last announced its quarterly earnings results on Wednesday, September 2nd. The data storage provider reported $2.58 EPS for the quarter, beating the consensus estimate of $2.12 by $0.46. NetApp had a net margin of 19.18% and a return on equity of 127.57%. The firm had revenue of $2.02 billion during the quarter, compared to the consensus estimate of $1.84 billion. During the same period last year, the firm earned $1.15 EPS. The business’s quarterly revenue was up 29.9% compared to the same quarter last year. NetApp has set its FY 2027 guidance at 9.730-10.030 EPS and its Q2 2027 guidance at 2.540-2.640 EPS. As a group, sell-side analysts forecast that NetApp, Inc. will post 7.34 EPS for the current fiscal year.

NetApp Announces Dividend The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 28th. Investors of record on Friday, October 9th will be given a $0.52 dividend. This represents a $2.08 annualized dividend and a dividend yield of 1.1%. The ex-dividend date is Friday, October 9th. NetApp’s dividend payout ratio is 32.70%.

Insider Buying and Selling In other news, President Cesar Cernuda sold 2,608 shares of the stock in a transaction on Monday, August 17th. The shares were sold at an average price of $204.48, for a total value of $533,283.84. Following the transaction, the president owned 46,530 shares of the company’s stock, valued at $9,514,454.40. This represents a 5.31% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, EVP Elizabeth M. O’callahan sold 1,000 shares of the firm’s stock in a transaction on Monday, August 10th. The shares were sold at an average price of $193.82, for a total transaction of $193,820.00. Following the sale, the executive vice president owned 30,297 shares in the company, valued at approximately $5,872,164.54. This trade represents a 3.20% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 55,072 shares of company stock worth $8,719,520 over the last ninety days. 0.36% of the stock is currently owned by insiders.

NetApp News Roundup Here are the key news stories impacting NetApp this week:

Positive Sentiment: NetApp reported fiscal Q1 revenue of approximately $2.03 billion, up 30% year over year, while adjusted EPS of $2.58 exceeded the roughly $2.12 analyst consensus. All-flash array revenue rose 47% to $1.31 billion, and public-cloud revenue increased 28%, underscoring strong demand tied to AI infrastructure, data modernization and hybrid cloud adoption. NTAP Q1 Earnings and Revenues Top Estimates on AI and All-Flash Strength Positive Sentiment: The company raised its fiscal 2027 forecast to approximately $7.98 billion-$8.23 billion in revenue and $9.73-$10.03 in adjusted EPS, well above prior Wall Street expectations. Second-quarter guidance also topped consensus, supporting the view that AI-led infrastructure spending is becoming durable. NetApp Forecasts Fiscal 2027 Revenue and Raises EPS Outlook Positive Sentiment: Analyst sentiment remains broadly constructive following the report. TD Cowen reaffirmed its Buy rating with a $200 target, while Goldman Sachs maintained its Buy rating and a $210 target; Morgan Stanley, Susquehanna and other firms also raised targets. NetApp Analysts Boost Their Forecasts After Strong Q1 Earnings Neutral Sentiment: NetApp announced a quarterly dividend of $0.52 per share, payable October 28 to shareholders of record October 9, providing continued income support for investors. NetApp Declares a $0.52 Dividend Negative Sentiment: The initial reaction was negative because operating cash flow and free cash flow declined year over year, inventory increased, and management warned that second-quarter gross margin would fall sequentially amid component costs and product-mix pressure. With expectations elevated after a significant rally, investors viewed the results as a mixed bag despite the earnings beat. NetApp Beats Estimates but Tumbles on Free Cash Flow Decline NetApp Company Profile (Free Report)

NetApp, Inc (NASDAQ: NTAP) is a data management and storage company that delivers hybrid cloud data services for applications and data. Founded in 1992 as Network Appliance and rebranded as NetApp in 2008, the company is headquartered in Sunnyvale, California. NetApp’s offering focuses on enabling organizations to store, manage, protect and move data across on-premises environments and major public clouds.

The company’s product portfolio centers on the ONTAP data management software and a range of storage systems and services built around it.

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SAN JOSE, Calif.--(BUSINESS WIRE)--NetApp® (NASDAQ: NTAP), the Intelligent Data Infrastructure company, and Amazon Web Services (AWS) today announced that AWS Transform now supports Amazon FSx for NetApp ONTAP, making it even easier for enterprises to move applications and data to AWS. AWS Transform is an agentic AI service that automates the discovery, planning, and migration of workloads to the cloud. Now generally available, customers can use AWS Transform to migrate attached storage from th.

NetApp shares are higher Thursday after reporting a beat on the top and bottom lines in fiscal Q1. George Kurian, NetApp CEO, joins 'Squawk on the Street' to discuss.

Key Takeaways NetApp's fiscal Q1 EPS rose 66.5% as revenues climbed 29.9% to $2.03 billion.Hybrid Cloud revenue rose 30.1%, while all-flash array revenue jumped 46.6% to a record $1.31 billion.NetApp raised fiscal 2027 revenue guidance to $7.975-$8.225 billion, with EPS projected at $9.73-$10.03. NetApp, Inc. (NTAP - Free Report) delivered a record first quarter of fiscal 2027, with non-GAAP earnings of $2.58 per share, up 66.5% year over year. The figure beat the Zacks Consensus Estimate of $2.13 by 21.1%.

Net revenues rose 29.9% to $2,025 million and surpassed the $1,843 million consensus mark by 9.9%. Strong AI and modernization spending, accelerated purchases and pricing benefits supported growth. Billings increased 36.1% to $2,057 million.

NTAP's Hybrid Cloud Business Leads GrowthHybrid Cloud revenues advanced 30.1% year over year to $1,819 million. Product revenues climbed 50.9% to $987 million, while support revenues increased 11.3% to $720 million. Professional and Other Services revenues rose 15.5% to $112 million, mainly on continued Keystone growth.

The quarter included an additional week, which contributed approximately $65 million to revenues, mainly from support and Public Cloud. Excluding that benefit, total revenues increased 26% year over year. Management also cited a healthier demand environment as customers invested in AI and infrastructure modernization.

NetApp's Flash and Public Cloud Momentum AcceleratesAll-flash array revenues reached a record $1,309 million, up 46.6% from the prior-year quarter. Hybrid-flash and other revenues were $510 million versus $505 million a year ago. Together, all-flash and Public Cloud represented 75% of quarterly net revenues.

Public Cloud revenues grew 28% to a record $206 million, reflecting strong first-party and marketplace storage demand. Adjusted for the extra week, Public Cloud growth was 19%. NetApp won approximately 350 AI and data lake modernization deals, with management noting larger deal sizes as customers moved from pilots to production. The company also acquired DataPelago to expand its AI data infrastructure capabilities.

NTAP's Margins Show Product Mix PressureNon-GAAP gross margin was 70.6%, down 50 basis points year over year. The decline reflected a larger product mix, with product revenues accounting for 49% of sales versus 42% a year earlier. Product gross margin was 54.6%, pressured sequentially by higher component costs but partly offset by better pricing.

Hybrid Cloud gross margin was 68.8%, while Public Cloud gross margin reached 86.4%. Support gross margin totaled 93.2%, and Professional Services gross margin was 36.6%. Year-over-year margin expansion across product, support, Professional Services and Public Cloud partly offset the product-mix headwind.

NetApp's Operating Leverage Boosts ProfitabilityNon-GAAP operating expenses rose 10.9% year over year to $784 million, driven primarily by variable compensation and the additional week, which added approximately $22 million. Even so, non-GAAP operating income increased 60.8% to $645 million.

The non-GAAP operating margin expanded to 31.9% from 25.7%. Non-GAAP net income increased 64% to $515 million. On a GAAP basis, net income rose 60.9% to $375 million, while earnings increased 63.5% to $1.88 per share.

NTAP's Cash Flow Moderates as Inventory BuildsCash from operations fell 25.3% year over year to $503 million, while free cash flow declined 35.3% to $401 million. Free cash flow margin was 19.8% compared with 39.8% a year ago. Capital expenditures increased to $102 million from $53 million.

NTAP ended the quarter with $3.58 billion in cash, cash equivalents and investments and $2.49 billion in gross debt, leaving net cash of $1.09 billion. Inventory increased to $375 million from $198 million at fiscal year-end as the company managed supply levels to support growing demand. NetApp returned $302 million through $200 million of repurchases and $102 million of dividends.

NetApp Raises Fiscal 2027 OutlookFor the second quarter of fiscal 2027, NetApp expects revenues of $2.025-$2.175 billion. Non-GAAP gross margin is projected at 67-68%, operating margin at 30.9-31.9% and earnings at $2.54-$2.64 per share. Management expects the sequential gross-margin decline mainly from a higher product revenue mix.

For fiscal 2027, revenues are now forecast at $7.975-$8.225 billion, with the $8.10 billion midpoint representing 17% growth and a $650 million increase from prior guidance. Non-GAAP gross margin is expected at 68.1-69.1%, operating margin at 30.3-31.3% and earnings at $9.73-$10.03 per share. The $9.88 earnings midpoint represents 22% year-over-year growth.

NTAP’s Zacks RankNetApp currently carries a Zacks Rank #2 (Buy).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Releases in the Storage SpaceSanDisk (SNDK - Free Report) reported fourth-quarter fiscal 2026 non-GAAP earnings of $39.25 per share that beat the Zacks Consensus Estimate by 14.63% and jumped 68% sequentially. The company reported earnings of 29 cents per share in the year-ago quarter. Revenues surged 371.6% year over year to $8.97 billion and beat the consensus mark by 8%. Sequentially, SNDK’s revenues surged 51%. Stronger pricing, higher volumes and rapid Datacenter growth drove the upside, with Datacenter revenues hitting $2.98 billion in the reported quarter.

Teradata Corporation (TDC - Free Report) reported second-quarter 2026 non-GAAP earnings of 69 cents per share, up 46.8% year over year. The figure surpassed the Zacks Consensus Estimate by 25.46%. Revenues of $410 million increased 0.5% from the year-ago quarter and beat the consensus by 2.91%. TDC’s Total annual recurring revenues increased 1% as reported and 2% in constant currency to $1.509 billion.

Super Micro Computer, Inc. (SMCI - Free Report) reported fourth-quarter fiscal 2026 non-GAAP earnings of $1.70 per share, beating the Zacks Consensus Estimate of 68 cents. The bottom line increased 315% year over year. SMCI generated net sales of $11.12 billion, which increased 93% year over year and 9% sequentially. Revenues also beat the Zacks Consensus Estimate by 1.09%. The strong performance reflected continued demand for AI infrastructure, as well as a sharp pickup in enterprise and channel activity.

NetApp, Inc. delivered a record fiscal first quarter, with revenues up 30% and EPS up 66%, beating all expectations. NTAP raised fiscal 2027 revenue guidance by $650 million, implying 17% growth, but expects slower growth in coming quarters. Profitability remains exceptional: gross margin near 71%, EBIT margin 24.5%, and return on equity over 100%, supporting an 18x earnings multiple.

SAN JOSE, Calif.--(BUSINESS WIRE)--NetApp (NASDAQ: NTAP), the Intelligent Data Infrastructure company, today reported financial results for the first quarter of fiscal year 2027, which ended on July 31, 2026.

“NetApp delivered a record-setting start to the year, exceeding guidance on every metric and achieving our strongest first quarter ever,” said George Kurian, Chief Executive Officer. “Our momentum reflects not only the trust of existing customers but also our success in winning new ones, as organizations choose the NetApp Platform to power their AI and hybrid multi-cloud initiatives. Through continued innovation and strategic investments, we are enabling customers to address their most critical needs and creating lasting value for all stakeholders.”

First Quarter of Fiscal Year 2027 Financial Results

($ in millions, except earnings per share)

  GAAP Results

Q1 FY27

Q1 FY26

% Change

Net revenues

$

2,025

$

1,559

30

%

Hybrid Cloud segment revenues

$

1,819

$

1,398

30

%

Public Cloud segment revenues

$

206

$

161

28

%

Gross profit

$

1,419

$

1,098

29

%

Net income

$

375

$

233

61

%

Earnings per share

$

1.88

$

1.15

63

%

Net cash provided by operating activities

$

503

$

673

(25

)%

  Non-GAAP Results

Q1 FY27

Q1 FY26

% Change

Billings

$

2,057

$

1,511

36

%

Net revenues

$

2,025

$

1,559

30

%

Hybrid Cloud segment revenues

$

1,819

$

1,398

30

%

Public Cloud segment revenues

$

206

$

161

28

%

Gross profit

$

1,429

$

1,108

29

%

Net income

$

515

$

314

64

%

Earnings per share

$

2.58

$

1.55

66

%

Free cash flow

$

401

$

620

(35

)%

  Full reconciliations between GAAP and non-GAAP measures, and explanations related to the usage of non-GAAP measures, are provided below.

Second Quarter of Fiscal Year 2027 Financial Outlook

  The Company provided the following financial guidance for the second quarter of fiscal year 2027:

  Net revenues are expected to be in the range of:

$2.025 billion - $2.175 billion

GAAP

Non-GAAP

Consolidated gross margins are expected to be in the range of:

66.0% - 67.0%

67.0% - 68.0%

Operating margins are expected to be in the range of:

24.9% - 25.9%

30.9% - 31.9%

Earnings per share is expected to be in the range of:

$1.97 - $2.07

$2.54 - $2.64

  Full Fiscal Year 2027 Financial Outlook

  The Company provided the following financial guidance for the full fiscal year 2027:

  Net revenues are expected to be in the range of:

$7.975 billion - $8.225 billion

GAAP

Non-GAAP

Consolidated gross margins are expected to be in the range of:

67.1% - 68.1%

68.1% - 69.1%

Operating margins are expected to be in the range of:

24.3% - 25.3%

30.3% - 31.3%

Earnings per share is expected to be in the range of:

$7.35 - $7.65

$9.73 - $10.03

Dividend

The next cash dividend of $0.52 per share is to be paid on October 28, 2026, to stockholders of record as of the close of business on October 9, 2026.

First Quarter of Fiscal Year 2027 Business Highlights

Leading Product Innovation

NetApp announced the release of StorageGRID 12.1, designed to help customers scale AI and other modern workloads with a federated global namespace, improving how data is accessed, processed, and managed across distributed environments to support AI data pipelines. NetApp announced new capabilities to NetApp Trident software 26.06 that helps Kubernetes platform teams scale workloads, while adding smarter volume placement, non-disruptive iSCSI volume rebalancing, expanded cloud support, and deeper integration for OpenShift Virtualization migrations. NetApp announced new data management capabilities optimized for Red Hat OpenShift that enable advanced levels of resilience and scale for virtualized environments, on-premises and in the cloud. NetApp announced Instaclustr for Model Context Protocol (MCP) Gateway, a fully managed gateway service that connects Instaclustr managed data infrastructure to AI applications and agents. NetApp announced the general availability of Azure NetApp Files support for large files up to 64 TiB on regular volumes to help remove the friction from large-scale migrations, de-risk VMware estate moves, and allow architects to design cleaner, more cost-effective solutions. NetApp announced the general availability of Azure NetApp Files Object REST API to eliminate complex data pipelines and enable direct access to AI capabilities through standardized interfaces. NetApp introduced nconnect on Azure VMware Solution, increasing throughput and lowering effective latency under load without adding datastores or hosts. NetApp announced the general availability of Azure NetApp Files migration assistant to accelerate and simplify migrations of business-critical applications and data to Azure. Customer and Partner Momentum

NetApp announced a collaboration with Cisco to offer new solutions for secure, scalable, and simplified AI, expanding on the success of FlexPod to support AI adoption across organizations. NetApp announced an expanded collaboration with Cisco to strengthen defense-in-depth strategies for customers with the new NetApp Splunk Security Orchestration, Automation, and Response (SOAR) playbook. NetApp announced a deepened global alliance with CGI where NetApp Keystone will power CGI’s block storage solutions within its shared services platform. NetApp and SK Telecom announced the completion of a joint proof of concept, using NetApp AFX systems with SK Telecom’s Petasus AI Cloud, demonstrating a solution that enables enterprises to scale AI infrastructure in virtualized environments while maintaining high performance. NetApp and Okestro signed a strategic partnership agreement to jointly develop integrated enterprise AI and disaster recovery infrastructure. NetApp announced a strategic partnership with Tata Consultancy Services to better help organizations discover, classify, and govern data across locations, reduce the impact of cyber-attacks, speed up recovery times, and provide insights on sensitive data locations and permissions. Corporate News and Events

NetApp announced its acquisition of DataPelago, Inc., to further enable computing where data is created and stored, accelerating demanding workloads while improving infrastructure efficiency at scale. Personnel

NetApp appointed Alvaro Celis as Chief Partner and Ecosystem Officer to lead partner ecosystems, modernize incentive programs, improve partner satisfaction, and drive growth. Awards and Recognition

NetApp CEO, George Kurian, was named to CRN’s 25 Most Influential Executives of 2026 list, emphasizing his leadership in data storage amid the age of cloud and AI. NetApp’s AI Data Engine was named as a finalist in CRN’s 2026 Tech Innovator Awards, noting its ability to transform massive unstructured data estates into always-fresh, AI-ready assets with enterprise-grade security, compliance, and operational efficiency. NetApp was named a Leader in the Forrester Wave™: Object Storage Solutions, Q2 2026, showcasing our strong fit for large enterprises managing distributed, regulated object estates that want to balance governance and hybrid consistency against the need for AI-native storage services. NetApp was recognized in The Wall Street Journal’s 2026 Best Companies For The Future list, ranking 60 out of 500 organizations. NetApp was named as one of the Greatest Workplaces in America, California, and Tech for 2026 by Newsweek, receiving a five-star rating based on a comprehensive worker satisfaction study. NetApp was named to Time Magazine’s Best Companies of 2026 list, ranking 271 out of 1,000 organizations. NetApp was named as one of the Best Companies to Work For by U.S. News, highlighting its top work environment. Webcast and Conference Call Information

NetApp will host a conference call to discuss these results today at 2:30 p.m. Pacific Time. To access the live webcast of this event, go to the NetApp Investor Relations website at investors.netapp.com. In addition, this press release and other information related to the call will be posted on the Investor Relations website. An audio replay will be available on the website after 4:30 p.m. Pacific Time today. NetApp uses its website as a tool to disclose important information about NetApp and comply with its disclosure obligations under Regulation Fair Disclosure.

“Safe Harbor” Statement Under U.S. Private Securities Litigation Reform Act of 1995

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, all of the statements made in the Second Quarter of Fiscal Year 2027 Financial Outlook section and the Full Fiscal Year 2027 Financial Outlook section, and statements about our business, economic and market outlook, financial guidance, our overall future prospects, expected benefits from our acquisitions and partnerships, demand for our AI solutions and other offerings, our ability to provide our customers secure, high-performance access to their data, our ability to maintain our operating margins, our ability to sustain growth, our platform and offerings, and our ability to capitalize on opportunities and deliver increasing results and value for our stakeholders. Actual results may differ materially from these statements for a variety of reasons, including, without limitation, our ability to keep pace with the rapid industry, technological and market trends and changes in the markets in which we operate; our ability to execute our evolved cloud strategy and introduce and gain market acceptance for our products and services; our ability to maintain our customer, partner, supplier and contract manufacturer relationships on favorable terms and conditions; global political, macroeconomic and market conditions, including inflation, fluctuating interest rates, tariffs, changes in trade policy, regulations, monetary policy shifts, recession risks, and foreign exchange volatility and the resulting impact on demand for our products; the impact of new or ongoing geopolitical conflicts and sanctions; adoption or changes to laws, regulations, standards, or policies affecting our operations, products, services, the storage industry, or AI usage; material cybersecurity and other security breaches; the impact of supply chain disruptions on our business operations, financial performance and results of operations; changes and related uncertainty in U.S. government spending or policy, including due to prolonged federal government shutdowns; changes in overall technology spending by our customers; revenue seasonality; changes in laws or regulations, including those relating to privacy, data protection and information security; the timing of orders and their fulfillment; and our ability to manage our gross profit margins, including managing component costs. These and other equally important factors are described in reports and documents we file from time to time with the Securities and Exchange Commission, including the factors described under the sections titled “Risk Factors” in our most recently filed annual report on Form 10-K and quarterly report on Form 10-Q. All statements made in this release are made only as of the date set forth at the beginning of this release. We disclaim any obligation to update information contained in this press release, whether as a result of new information, future events, or otherwise.

NetApp Usage of Non-GAAP Financial Information

To supplement NetApp’s condensed consolidated financial statement information presented in accordance with generally accepted accounting principles in the United States (GAAP), NetApp provides investors with certain non-GAAP measures, including, but not limited to, historical non-GAAP gross margins, non-GAAP gross profit, non-GAAP operating income, non-GAAP operating margins, non-GAAP net income, non-GAAP effective tax rate, free cash flow, billings, and historical and projected non-GAAP earnings per share.

NetApp believes that the presentation of its non-GAAP measures, when shown in conjunction with the corresponding GAAP measures, provides useful information to investors and management regarding financial and business trends relating to its financial condition and results of operations. Non-GAAP financial measures are used to: (1) measure company performance against historical results, (2) facilitate comparisons to our competitors’ operating results, and (3) allow greater transparency with respect to information used by management in financial and operational decision making.

NetApp believes that the presentation of non-GAAP gross margins, non-GAAP gross profit, non-GAAP operating income, non-GAAP operating margins, non-GAAP effective tax rate, non-GAAP net income, and non-GAAP earnings per share data provides investors with supplemental metrics that assist in understanding current results and future prospects, earnings and profitability that are complementary to GAAP metrics. Each of these non-GAAP metrics is defined as the applicable GAAP metric adjusted to exclude the items defined in A through I below, as applicable, while our non-GAAP effective tax rate and non-GAAP net income also reflect a non-GAAP tax provision, as described in item J below, instead of our GAAP tax provision. GAAP earnings per share and non-GAAP earnings per share are calculated using the net income divided by the diluted number of shares for the applicable period.

NetApp believes that the presentation of free cash flow, which it defines as the net cash provided by operating activities less cash used to acquire property and equipment, to be a liquidity measure that provides useful information to investors and management because it reflects cash that can be used to, among other things, invest in its business, make strategic acquisitions, repurchase common stock, and pay dividends on its common stock. As free cash flow is not a measure of liquidity calculated in accordance with GAAP, free cash flow should be considered in addition to, but not as a substitute for, the analysis provided in the statement of cash flows.

NetApp approximates billings by adding net revenues as reported on our Condensed Consolidated Statements of Operations for the period to the change in total deferred revenue as reported on our Condensed Consolidated Statements of Cash Flows for the same period. Billings is a performance measure that NetApp believes provides useful information to investors and management because it approximates the amounts under purchase orders received by us during a given period that have been billed.

NetApp excludes the following items from its non-GAAP measures when applicable:

A. Amortization of intangible assets. NetApp records amortization of intangible assets that were acquired in connection with its business combinations. The amortization of intangible assets varies depending on the level of acquisition activity. Management finds it useful to exclude these charges to assess the appropriate level of various operating expenses to assist in budgeting, planning and forecasting future periods and in measuring operational performance.

B. Stock-based compensation expenses. NetApp excludes stock-based compensation expenses from its non-GAAP measures primarily because the amount can fluctuate based on variables unrelated to the performance of the underlying business. While management views stock-based compensation as a key element of our employee retention and long-term incentives, we do not view it as an expense to be used in evaluating operational performance in any given period.

C. Litigation settlements. NetApp may periodically incur charges or benefits related to litigation settlements. NetApp excludes these charges and benefits, when significant, because it does not believe they are reflective of ongoing business and operating results.

D. Acquisition-related expenses. NetApp excludes acquisition-related expenses, including (a) due diligence, legal and other one-time integration charges and (b) write down of assets acquired that NetApp does not intend to use in its ongoing business, from its non-GAAP measures, primarily because they are not related to our ongoing business or cost base and, therefore, are less useful for future planning and forecasting.

E. Restructuring charges. These charges consist of restructuring charges that are incurred based on the particular facts and circumstances of restructuring decisions, including employment and contractual settlement terms, and other related charges, and can vary in size and frequency. We therefore exclude them in our assessment of operational performance.

F. Asset impairments. These are non-cash charges to write down assets when there is an indication that the asset has become impaired. Management finds it useful to exclude these non-cash charges due to the unpredictability of these events in its assessment of operational performance.

G. Gains/losses on the sale or derecognition of assets. These are gains/losses from the sale of our properties and other transactions in which we transfer and/or lose control of assets to a third party. This is inclusive of third-party advisory, legal and other costs that result directly from and are essential to a sale transaction and that would not have been incurred had the decision to sell not been made. Management believes that these transactions do not reflect the results of our underlying, ongoing business and, therefore, are less useful for future planning and forecasting.

H. Gains/losses on the sale of investments in equity securities. These are gains/losses from the sale of our investment in certain equity securities. Typically, such investments are sold as a result of a change in control of the underlying businesses. Management believes that these transactions do not reflect the results of our underlying, ongoing business and, therefore, are less useful for future planning and forecasting.

I. Debt extinguishment costs. NetApp excludes certain non-recurring expenses incurred as a result of the early extinguishment of debt. Management believes such non-recurring costs do not reflect the results of its underlying, ongoing business and, therefore, are less useful for future planning and forecasting.

J. Income tax effects. NetApp’s non-GAAP tax provision is based upon a projected annual non-GAAP effective tax rate for the first three quarters of the fiscal year and an actual non-GAAP tax provision for the fourth quarter of the fiscal year. The non-GAAP tax provision also excludes, when applicable, (a) tax charges or benefits in the current period that relate to one or more prior fiscal periods that are a result of events such as changes in tax legislation, authoritative guidance, income tax audit settlements, statute lapses and/or court decisions, (b) tax charges or benefits that are attributable to unusual or non-recurring book and/or tax accounting method changes, (c) tax charges or benefits that are a result of a non-routine foreign cash repatriation, (d) tax charges or benefits that are a result of infrequent restructuring of the Company’s tax structure, (e) tax charges or benefits that are a result of a change in valuation allowance, and (f) tax charges or benefits resulting from the integration of intellectual property from acquisitions. Management believes that the use of non-GAAP tax provisions provides a more meaningful measure of the Company’s operational performance.

Non-GAAP measures are not in accordance with, or an alternative for, measures prepared in accordance with GAAP and may be different from non-GAAP measures used by other companies. In addition, non-GAAP measures are not based on any comprehensive set of accounting rules or principles. NetApp believes that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with the Company’s results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate the Company’s results of operations in conjunction with the corresponding GAAP measures. NetApp management compensates for these limitations by analyzing current and projected results on a GAAP basis as well as a non-GAAP basis. The presentation of non-GAAP financial information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP. A detailed reconciliation of our non-GAAP to GAAP results can be found herein. In the press release and accompanying financial statements and reconciliations, the terms "operating income" and "income from operations" are used interchangeably. Similarly, "earnings per share" and "net income per share" are also used interchangeably.

Constant Currency

In periods in which the impacts of foreign currency exchange rate changes are significant, NetApp presents certain constant currency growth rates or quantifies the impact of foreign currency exchange rate changes on year-over-year fluctuations, including for net revenues, billings, and earnings. This constant currency information assumes that the same foreign currency exchange rates that were in effect for the comparable prior-year period were used in translation of the current period results.

About NetApp

For more than three decades, NetApp has helped the world’s leading organizations navigate change – from the rise of enterprise storage to the intelligent era defined by data and AI. Today, NetApp is the Intelligent Data Infrastructure company, helping customers turn data into a catalyst for innovation, resilience, and growth.

At the heart of that infrastructure is the NetApp data platform – the unified, enterprise-grade, intelligent foundation that connects, protects, and activates data across every cloud, workload, and environment. Built on the proven power of NetApp ONTAP, our leading data management software and OS, and enhanced by automation through the AI Data Engine and AFX, it delivers observability, resilience, and intelligence at scale.

Disaggregated by design, the NetApp data platform separates storage, services, and control so enterprises can modernize faster, scale efficiently, and innovate without lock-in. As the only enterprise storage platform natively embedded in the world’s largest clouds, it gives organizations the freedom to run any workload anywhere with consistent performance, governance, and protection.

With NetApp, data is always ready – ready to defend against threats, ready to power AI, and ready to drive the next breakthrough. That’s why the world’s most forward-thinking enterprises trust NetApp to turn intelligence into advantage.

Learn more at www.netapp.com or follow us on X, LinkedIn, Facebook, and Instagram.

NetApp, the NetApp logo, and the marks listed at www.netapp.com/TM are trademarks of NetApp, Inc. All other marks are the property of their respective owners.

  NETAPP, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

($ in millions)

(Unaudited)

July 31, 2026

April 24, 2026

ASSETS

Current assets:

Cash, cash equivalents and investments

$

3,576

$

3,584

Accounts receivable

966

1,286

Inventories

375

198

Other current assets

755

708

Total current assets

5,672

5,776

Property and equipment, net

663

592

Goodwill and purchased intangible assets, net

2,954

2,794

Other non-current assets

1,666

1,582

Total assets

$

10,955

$

10,744

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable

$

566

$

550

Accrued expenses

1,200

1,151

Current portion of long-term debt

550

—

Short-term deferred revenue

2,252

2,320

Total current liabilities

4,568

4,021

Long-term debt

1,938

2,487

Other long-term liabilities

360

360

Long-term deferred revenue

2,594

2,525

Total liabilities

9,460

9,393

Stockholders' equity

1,495

1,351

Total liabilities and stockholders' equity

$

10,955

$

10,744

  NETAPP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

($ in millions, except net income per share amounts)

(Unaudited)

Three Months Ended

July 31, 2026

July 25, 2025

Revenues:

Product

$

987

$

654

Services

1,038

905

Net revenues

2,025

1,559

Cost of revenues:

Cost of product

450

302

Cost of services

156

159

Total cost of revenues

606

461

Gross profit

1,419

1,098

Operating expenses:

Sales and marketing

507

461

Research and development

274

242

General and administrative

98

84

Restructuring charges

56

2

Total operating expenses

935

789

Income from operations

484

309

Other expense, net

—

(5

)

Income before income taxes

484

304

Provision for income taxes

109

71

Net income

$

375

$

233

Net income per share:

Basic

$

1.91

$

1.16

Diluted

$

1.88

$

1.15

Shares used in net income per share calculations:

Basic

196

201

Diluted

200

203

  NETAPP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

($ in millions)

(Unaudited)

Three Months Ended

July 31, 2026

July 25, 2025

Cash flows from operating activities:

Net income

$

375

$

233

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

33

51

Non-cash operating lease cost

11

11

Stock-based compensation

98

83

Deferred income taxes

(5

)

9

Other items, net

(15

)

46

Changes in assets and liabilities:

Accounts receivable

317

466

Inventories

(176

)

54

Accounts payable

19

(107

)

Accrued expenses

(75

)

(240

)

Deferred revenue

32

(48

)

Changes in other operating assets and liabilities, net

(111

)

115

Net cash provided by operating activities

503

673

Cash flows from investing activities:

Purchases of investments, net

(494

)

(143

)

Purchases of property and equipment

(102

)

(53

)

Acquisition of business, net of cash acquired

(78

)

—

Other investing activities, net

—

15

Net cash used in investing activities

(674

)

(181

)

Cash flows from financing activities:

Proceeds from issuance of common stock under employee stock award plans

57

54

Payments for taxes related to net share settlement of stock awards

(74

)

(57

)

Repurchase of common stock

(200

)

(300

)

Repayments and extinguishment of debt

—

(750

)

Dividends paid

(102

)

(104

)

Net cash used in financing activities

(319

)

(1,157

)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

(6

)

7

Net change in cash, cash equivalents and restricted cash

(496

)

(658

)

Cash, cash equivalents and restricted cash:

Beginning of period

2,075

2,749

End of period

$

1,579

$

2,091

  NETAPP, INC.

RECONCILIATION OF GAAP TO NON-GAAP

INCOME STATEMENT INFORMATION

($ in millions)

Q1 FY27

Q1 FY26

NET INCOME

$

375

$

233

Adjustments:

Amortization of intangible assets

6

6

Stock-based compensation

98

83

Restructuring charges

56

2

Acquisition-related expense

1

—

Gains/losses on the sale or derecognition of assets

—

1

Income tax effects

(21

)

(11

)

NON-GAAP NET INCOME

$

515

$

314

COST OF REVENUES

$

606

$

461

Adjustments:

Amortization of intangible assets

(3

)

(3

)

Stock-based compensation

(7

)

(7

)

NON-GAAP COST OF REVENUES

$

596

$

451

COST OF PRODUCT REVENUES

$

450

$

302

Adjustments:

Stock-based compensation

(2

)

(1

)

NON-GAAP COST OF PRODUCT REVENUES

$

448

$

301

COST OF SERVICES REVENUES

$

156

$

159

Adjustments:

Amortization of intangible assets

(3

)

(3

)

Stock-based compensation

(5

)

(6

)

NON-GAAP COST OF SERVICES REVENUES

$

148

$

150

GROSS PROFIT

$

1,419

$

1,098

Adjustments:

Amortization of intangible assets

3

3

Stock-based compensation

7

7

NON-GAAP GROSS PROFIT

$

1,429

$

1,108

  NETAPP, INC.

RECONCILIATION OF GAAP TO NON-GAAP

INCOME STATEMENT INFORMATION

($ in millions)

Q1 FY27

Q1 FY26

SALES AND MARKETING EXPENSES

$

507

$

461

Adjustments:

Amortization of intangible assets

(3

)

(3

)

Stock-based compensation

(40

)

(34

)

NON-GAAP SALES AND MARKETING EXPENSES

$

464

$

424

RESEARCH AND DEVELOPMENT EXPENSES

$

274

$

242

Adjustments:

Stock-based compensation

(35

)

(25

)

NON-GAAP RESEARCH AND DEVELOPMENT EXPENSES

$

239

$

217

GENERAL AND ADMINISTRATIVE EXPENSES

$

98

$

84

Adjustments:

Stock-based compensation

(16

)

(17

)

Acquisition-related expense

(1

)

—

Gains/losses on the sale or derecognition of assets

—

(1

)

NON-GAAP GENERAL AND ADMINISTRATIVE EXPENSES

$

81

$

66

RESTRUCTURING CHARGES

$

56

$

2

Adjustments:

Restructuring charges

(56

)

(2

)

NON-GAAP RESTRUCTURING CHARGES

$

—

$

—

OPERATING EXPENSES

$

935

$

789

Adjustments:

Amortization of intangible assets

(3

)

(3

)

Stock-based compensation

(91

)

(76

)

Restructuring charges

(56

)

(2

)

Acquisition-related expense

(1

)

—

Gains/losses on the sale or derecognition of assets

—

(1

)

NON-GAAP OPERATING EXPENSES

$

784

$

707

  NETAPP, INC.

RECONCILIATION OF GAAP TO NON-GAAP

INCOME STATEMENT INFORMATION

($ in millions, except net income per share)

Q1 FY27

Q1 FY26

INCOME FROM OPERATIONS

$

484

$

309

Adjustments:

Amortization of intangible assets

6

6

Stock-based compensation

98

83

Restructuring charges

56

2

Acquisition-related expense

1

—

Gains/losses on the sale or derecognition of assets

—

1

NON-GAAP INCOME FROM OPERATIONS

$

645

$

401

INCOME BEFORE INCOME TAXES

$

484

$

304

Adjustments:

Amortization of intangible assets

6

6

Stock-based compensation

98

83

Restructuring charges

56

2

Acquisition-related expense

1

—

Gains/losses on the sale or derecognition of assets

—

1

NON-GAAP INCOME BEFORE INCOME TAXES

$

645

$

396

PROVISION FOR INCOME TAXES

$

109

$

71

Adjustments:

Income tax effects

21

11

NON-GAAP PROVISION FOR INCOME TAXES

$

130

$

82

NET INCOME PER SHARE

$

1.88

$

1.15

Adjustments:

Amortization of intangible assets

0.03

0.03

Stock-based compensation

0.49

0.41

Restructuring charges

0.28

0.01

Acquisition-related expense

0.01

—

Income tax effects

(0.11

)

(0.05

)

NON-GAAP NET INCOME PER SHARE

$

2.58

$

1.55

  RECONCILIATION OF GAAP TO NON-GAAP

GROSS MARGIN

($ in millions)

Q1 FY27

Q1 FY26

Gross margin

70.1

%

70.4

%

Cost of revenues adjustments

0.5

%

0.7

%

Non-GAAP Gross margin

70.6

%

71.1

%

Cost of revenues

$

606

$

461

Cost of revenues adjustments:

Amortization of intangible assets

(3

)

(3

)

Stock-based compensation

(7

)

(7

)

Non-GAAP Cost of revenues

$

596

$

451

Net revenues

$

2,025

$

1,559

  RECONCILIATION OF GAAP TO NON-GAAP

PRODUCT GROSS MARGIN

($ in millions)

Q1 FY27

Q1 FY26

Product gross margin

54.4

%

53.8

%

Cost of product revenues adjustments

0.2

%

0.2

%

Non-GAAP Product gross margin

54.6

%

54.0

%

Cost of product revenues

$

450

$

302

Cost of product revenues adjustments:

Stock-based compensation

(2

)

(1

)

Non-GAAP Cost of product revenues

$

448

$

301

Product revenues

$

987

$

654

  RECONCILIATION OF GAAP TO NON-GAAP

SERVICES GROSS MARGIN

($ in millions)

Q1 FY27

Q1 FY26

Services gross margin

85.0

%

82.4

%

Cost of services revenues adjustments

0.7

%

1.0

%

Non-GAAP Services gross margin

85.7

%

83.4

%

Cost of services revenues

$

156

$

159

Cost of services revenues adjustments:

Amortization of intangible assets

(3

)

(3

)

Stock-based compensation

(5

)

(6

)

Non-GAAP Cost of services revenues

$

148

$

150

Services revenues

$

1,038

$

905

  RECONCILIATION OF GAAP TO NON-GAAP

OPERATING MARGIN

($ in millions)

Q1 FY27

Q1 FY26

Operating margin

23.9

%

19.8

%

Adjustments

8.0

%

5.9

%

Non-GAAP Operating margin

31.9

%

25.7

%

Income from operations

$

484

$

309

Income from operations adjustments:

Amortization of intangible assets

6

6

Stock-based compensation

98

83

Restructuring charges

56

2

Acquisition-related expense

1

—

Gains/losses on the sale or derecognition of assets

—

1

Non-GAAP Income from operations

$

645

$

401

Net revenues

$

2,025

$

1,559

  RECONCILIATION OF GAAP TO NON-GAAP

EFFECTIVE TAX RATE

Q1 FY27

Q1 FY26

Effective tax rate

22.5

%

23.4

%

Adjustments:

Income tax effects

(2.3

)%

(2.7

)%

Non-GAAP Effective tax rate

20.2

%

20.7

%

  RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES

TO FREE CASH FLOW (NON-GAAP)

($ in millions)

Q1 FY27

Q1 FY26

Net cash provided by operating activities

$

503

$

673

Purchases of property and equipment

(102

)

(53

)

Free cash flow

$

401

$

620

  RECONCILIATION OF NET REVENUES

TO BILLINGS (NON-GAAP)

($ in millions)

Q1 FY27

Q1 FY26

Net revenues

$

2,025

$

1,559

Change in deferred revenue*

32

(48

)

Billings

$

2,057

$

1,511

* As reported on our Condensed Consolidated Statements of Cash Flows

  NETAPP, INC.

SUPPLEMENTAL DATA

($ in millions, except net income per share, DSO, DPO, and Inventory Turns)

(Unaudited)

Revenues by Segment

Q1 FY27

Q1 FY26

Product

$

987

$

654

Support

720

647

Professional and Other Services

112

97

Hybrid Cloud Segment Net Revenues

1,819

1,398

Public Cloud Segment Net Revenues

206

161

Net Revenues

$

2,025

$

1,559

Hybrid Cloud Segment Net Revenues by Storage Category

Q1 FY27

Q1 FY26

All-flash revenues

$

1,309

$

893

Hybrid-flash and other revenues

510

505

Hybrid Cloud Segment Net Revenues

$

1,819

$

1,398

Gross Profit by Segment

Q1 FY27

Q1 FY26

Product

$

539

$

353

Support

671

597

Professional and Other Services

41

29

Hybrid Cloud Segment Gross Profit

1,251

979

Public Cloud Segment Gross Profit

178

129

Total Segments Gross Profit

1,429

1,108

Amortization of Intangible Assets

(3

)

(3

)

Stock-based Compensation

(7

)

(7

)

Unallocated Cost of Revenues

(10

)

(10

)

Gross Profit

$

1,419

$

1,098

Gross Margin by Segment

Q1 FY27

Q1 FY26

Product

54.6

%

54.0

%

Support

93.2

%

92.3

%

Professional and Other Services

36.6

%

29.9

%

Hybrid Cloud Segment Gross Margin

68.8

%

70.0

%

Public Cloud Segment Gross Margin

86.4

%

80.1

%

  NETAPP, INC.

SUPPLEMENTAL DATA

($ in millions, except net income per share, DSO, DPO, and Inventory Turns)

(Unaudited)

Net Revenues by Geographic Area

Q1 FY27

Q1 FY26

Americas

48

%

51

%

Americas Commercial

37

%

40

%

U.S. Public Sector*

11

%

11

%

EMEA

33

%

32

%

Asia Pacific

19

%

17

%

* U.S. Public Sector includes revenue from both the U.S. federal government and U.S. state governments, local municipalities and education institutions.

  Non-GAAP Income from Operations, Income before Income Taxes & Effective Tax Rate

Q1 FY27

Q1 FY26

Non-GAAP Income from Operations

$

645

$

401

Operating Margin

31.9

%

25.7

%

Non-GAAP Income before Income Taxes

$

645

$

396

Non-GAAP Effective Tax Rate

20.2

%

20.7

%

Non-GAAP Net Income

Q1 FY27

Q1 FY26

Non-GAAP Net Income

$

515

$

314

Non-GAAP Weighted Average Common Shares Outstanding, Diluted

200

203

Non-GAAP Net Income per Share, Diluted

$

2.58

$

1.55

Select Balance Sheet Items

Q1 FY27

Q1 FY26

Deferred Revenue

$

4,846

$

4,526

DSO (days)

47

46

DPO (days)

92

80

Inventory Turns

6

14

Days sales outstanding (DSO) is defined as accounts receivable divided by net revenues, multiplied by the number of days in the quarter.

Days payables outstanding (DPO) is defined as accounts payable divided by cost of revenues, multiplied by the number of days in the quarter.

Inventory turns is defined as annualized cost of revenues divided by net inventories.

Select Cash Flow Statement Items

Q1 FY27

Q1 FY26

Net Cash Provided by Operating Activities

$

503

$

673

Purchases of Property and Equipment

$

102

$

53

Free Cash Flow

$

401

$

620

Free Cash Flow Margin

19.8

%

39.8

%

Free cash flow is a non-GAAP measure and is defined as net cash provided by operating activities less purchases of property and equipment.

Free cash flow margin is defined as free cash flow as a percentage of net revenues.

Some items may not add or recalculate due to rounding.

  NETAPP, INC.

RECONCILIATION OF GAAP GUIDANCE TO NON-GAAP

SECOND QUARTER FISCAL 2027

Second Quarter

Fiscal 2027

GAAP Guidance - Gross Margin

66.0% - 67.0%

Adjustments:

Cost of revenues adjustments

1%

Non-GAAP Guidance - Gross Margin

67.0% - 68.0%

Second Quarter

Fiscal 2027

GAAP Guidance - Operating Margin

24.9% - 25.9%

Adjustments:

Stock-based compensation expense

6%

Non-GAAP Guidance - Operating Margin

30.9% - 31.9%

Some items may not add or recalculate due to rounding.

Second Quarter

Fiscal 2027

GAAP Guidance - Net Income Per Share

$1.97 - $2.07

Adjustments of Specific Items to Net Income

Per Share:

Amortization of intangible assets

$0.03

Stock-based compensation expense

$0.58

Income tax effects

($0.04)

Total Adjustments

$0.57

Non-GAAP Guidance - Net Income Per Share

$2.54 - $2.64

Some items may not add or recalculate due to rounding.

  NETAPP, INC.

RECONCILIATION OF GAAP GUIDANCE TO NON-GAAP

FISCAL 2027

Fiscal 2027

GAAP Guidance - Gross Margin

67.1% - 68.1%

Adjustments:

Cost of revenues adjustments

1%

Non-GAAP Guidance - Gross Margin

68.1% - 69.1%

Fiscal 2027

GAAP Guidance - Operating Margin

24.3% - 25.3%

Adjustments:

Stock-based compensation expense

5%

Restructuring charges

1%

Non-GAAP Guidance - Operating Margin

30.3% - 31.3%

Some items may not add or recalculate due to rounding.

Fiscal 2027

GAAP Guidance - Net Income Per Share

$7.35 - $7.65

Adjustments of Specific Items to Net Income

Per Share:

Amortization of intangible assets

$0.12

Stock-based compensation expense

$2.19

Restructuring charges

$0.28

Acquisition-related expenses

$0.01

Income tax effects

($0.22)

Total Adjustments

$2.38

Non-GAAP Guidance - Net Income Per Share

$9.73 - $10.03

Some items may not add or recalculate due to rounding.

NetApp (NTAP - Free Report) came out with quarterly earnings of $2.58 per share, beating the Zacks Consensus Estimate of $2.13 per share. This compares to earnings of $1.55 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +21.13%. A quarter ago, it was expected that this data storage company would post earnings of $2.27 per share when it actually produced earnings of $2.43, delivering a surprise of +7.05%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

NetApp, which belongs to the Zacks Computer- Storage Devices industry, posted revenues of $2.03 billion for the quarter ended July 2026, surpassing the Zacks Consensus Estimate by 9.86%. This compares to year-ago revenues of $1.56 billion. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

NetApp shares have added about 71% since the beginning of the year versus the S&P 500's gain of 11.5%.

What's Next for NetApp?While NetApp has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for NetApp was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.20 on $1.86 billion in revenues for the coming quarter and $9.07 on $7.56 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Computer- Storage Devices is currently in the top 4% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the broader Zacks Computer and Technology sector, UiPath (PATH - Free Report) , is yet to report results for the quarter ended July 2026. The results are expected to be released on September 3.

This enterprise automation software developer is expected to post quarterly earnings of $0.15 per share in its upcoming report, which represents no change from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

UiPath's revenues are expected to be $397.59 million, up 9.9% from the year-ago quarter.

5 Tech Stocks Holding Their Ground Through the AI Trade PullbackNetApp NASDAQ: NTAP reported a record start to fiscal 2027, with first-quarter revenue rising 30% year over year to $2.03 billion and non-GAAP earnings per share increasing 66% to $2.58. The company said results exceeded the high end of its guidance ranges and reflected broad demand across its hybrid cloud, public cloud, all-flash and storage-as-a-service offerings.

CEO George Kurian said the quarter benefited from both stronger underlying demand for AI and data modernization projects and some accelerated customer purchases. He said the company also captured pricing benefits as component costs increased, though NetApp expects product-margin conditions to remain influenced by mix, costs and pricing through the year.

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First-Quarter Results and Segment Performance Is Backblaze the Next Momentum Monster?NetApp said Q1 included an additional week, which contributed approximately $65 million in revenue, primarily from support and public cloud. Excluding that benefit, revenue increased 26% year over year, according to CFO Wissam Jabre.

Hybrid cloud revenue rose 30% year over year to $1.82 billion, or 27% excluding the extra week. Product revenue increased 51% to $987 million. Support revenue grew 11% to $720 million; excluding the extra week, support revenue increased 4%. Professional services revenue rose 15% to $112 million, driven mainly by Keystone, NetApp’s storage-as-a-service offering. Public cloud revenue increased 28% to $206 million, or 19% excluding the extra week. All-Flash Array revenue climbed 47% year over year to $1.31 billion. Non-GAAP gross margin was 70.6%, down 50 basis points from a year earlier, as product revenue represented 49% of total revenue versus 42% in the prior-year quarter. Gross profit increased 29% to $1.43 billion. Product gross margin was 54.6%, down 150 basis points sequentially, primarily because of higher component costs, partly offset by pricing.

Semtech Stock Climbs as AI Boom Drives Turnaround SuccessNetApp’s operating income increased 61% year over year to $645 million, while operating margin expanded 6.1 percentage points to 31.9%. The company generated $503 million in operating cash flow and $401 million in free cash flow during the quarter.

NetApp returned $302 million to shareholders, including $200 million in share repurchases and $102 million in dividends, or $0.52 per share. It ended the quarter with $3.6 billion in cash and short-term investments, $2.5 billion in gross debt and a net cash position of $1.1 billion.

AI, Modernization and Customer Demand Kurian said AI-related demand is extending beyond dedicated GPU environments into broader modernization of databases, unstructured data platforms and other infrastructure needed to support AI applications and inference workloads. NetApp closed approximately 350 AI and data lake modernization deals in the quarter, with deal sizes increasing as customers move from proof-of-concept deployments into production.

The company cited agreements with Samsung Electronics for its electronic design automation environment and AI Center of Excellence, a public sector organization deploying NetApp AFF integrated with NVIDIA SuperPOD, and an Asian neocloud provider building customer-facing AI services.

Kurian said demand was broad-based across customer sizes, geographies, industry verticals, workloads and consumption models. While certain large customers accelerated purchases for select projects, he characterized those transactions as a small part of the overall business. In some cases, customers accelerated higher-priority projects while deferring lower-priority work.

NetApp also said customers are increasingly evaluating hybrid flash systems for lower-value use cases, while all-flash remains the largest contributor to the company’s growth. Kurian said the company saw stronger-than-expected demand for both technology refreshes and new workloads.

Cloud Strategy and Acquisitions Public cloud revenue continued to grow in the high teens excluding the additional week, driven by adoption of NetApp’s first-party and marketplace storage services. The company highlighted Amazon FSx for NetApp ONTAP and Azure NetApp Files deployments supporting VMware migrations and data modernization projects.

Kurian said NetApp plans to introduce additional AI capabilities with hyperscale cloud providers and expand offerings that connect on-premises data with cloud environments. He also said Keystone grew roughly in line with the company’s all-flash business, with minimal benefit from the additional week.

During Q1, NetApp acquired DataPelago, whose Nucleus software engine is designed for in-place data processing for AI workloads. At the start of Q2, NetApp acquired JetStream, a provider of cloud-native disaster recovery technology for VMware environments. Kurian said the acquisitions strengthen the company’s cloud and AI offerings, including its ability to support VMware migrations even when production data resides on competitors’ infrastructure.

Raised Fiscal 2027 Outlook For the second quarter, NetApp forecast revenue of $2.1 billion, plus or minus $75 million, representing 23% year-over-year growth at the midpoint. It expects non-GAAP gross margin of 67% to 68%, operating margin of 30.9% to 31.9%, and earnings per share of $2.54 to $2.64.

For fiscal 2027, NetApp raised its revenue outlook to $7.975 billion to $8.225 billion. The $8.1 billion midpoint would represent 17% growth and is $650 million above the company’s prior guidance midpoint. The company also raised its full-year non-GAAP EPS outlook to $9.73 to $10.03, with a midpoint of $9.88, representing 22% year-over-year growth.

Jabre said the company’s revised full-year gross-margin range of 68.1% to 69.1% reflects a greater expected product mix, although its outlook for product gross margin improved slightly from its forecast 90 days earlier. NetApp expects full-year operating margin of 30.3% to 31.3% as it continues investing in AI solutions while maintaining what Jabre described as disciplined expense management.

About NetApp (NASDAQ:NTAP)NetApp, Inc NASDAQ: NTAP is a data management and storage company that delivers hybrid cloud data services for applications and data. Founded in 1992 as Network Appliance and rebranded as NetApp in 2008, the company is headquartered in Sunnyvale, California. NetApp's offering focuses on enabling organizations to store, manage, protect and move data across on-premises environments and major public clouds.

The company's product portfolio centers on the ONTAP data management software and a range of storage systems and services built around it.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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NetApp solutions validated to support VCF 9.1, giving mutual customers access to a modern private cloud with enterprise-grade data management, cyber resilience, and cost-efficient scaling

SAN JOSE, Calif.--(BUSINESS WIRE)--NetApp® (NASDAQ: NTAP), the Intelligent Data Infrastructure company, announced new capabilities in NetApp ONTAP® have been tested and validated to support VMware Cloud Foundation (VCF) 9.1, giving customers an optimized and secure data infrastructure foundation for their private and hybrid clouds. By combining the advanced capabilities of VCF 9.1 with cost-effective and enterprise data management with built-in security features from NetApp, including safeguarding data against ransomware attacks with rapid recovery, mutual customers can lower costs and accelerate the deployment of their AI software into production.

VMware Cloud Foundation 9.1 provides enterprises with a unified private cloud platform for running both traditional and modern workloads. NetApp's solutions are tested and validated to support VCF 9.1 environments, enabling mutual customers to immediately begin taking advantage of VCF 9.1 innovations when they upgrade, with a data infrastructure layer already proven to work with the new release.

To fully leverage their data on their own terms, customers need to unify their data estates across on-premises and hybrid or multicloud environments. NetApp first-party cloud storage services are the only external enterprise storage certified to support VMware Cloud Foundation environments across the major hyperscale clouds, giving customers the flexibility to adapt as their needs change. With entitlement through VCF license portability, customers can deploy VMware Cloud Foundation in certified hyperscaler environments and run their VMware workloads on VCF in the cloud without refactoring.

“To keep up with the rapid pace of innovation required to thrive in a competitive landscape, enterprises need flexibility to move and place workloads in the best environment to which they are suited,” said Alvaro Celis, Chief Partner and Ecosystem Officer at NetApp. “NetApp continues to innovate to ensure VCF customers can operate consistently and without disruption across cloud environments. Together with Broadcom, we are giving organizations the autonomy to optimize, protect, and scale their virtualized environments across any cloud on their own terms, safeguarding their existing operational investments while unlocking the future.”

Combining the power of the NetApp Platform with VCF 9.1 enables customers to benefit from:

Cost-Effective, Scalable and Secure Private Clouds: VCF 9.1 greatly improves density for both VM and containerized AI workloads on existing infrastructure while reducing operational complexity through intelligent resource management and automated operations. NetApp ONTAP complements this by delivering cost-effective, enterprise-grade storage as primary storage for VCF management and workload domains, helping customers get more from their infrastructure investments without forcing disruptive changes to their applications or operating models. The new capabilities to support VCF environments, including NetApp Console Backup and Recovery and NetApp Console Data Services, give customers additional tools to strengthen cyber resilience and data protection. Complementing these innovations, ONTAP Tools for VMware will introduce advanced datastore-granular replication and consistency group management. By embedding these controls directly into the vCenter UI and exposing them via REST APIs for VCF Operations Orchestrator, VCF administrators will have seamless, native control over their vSphere Metro Storage Clusters. Customers can leverage these capabilities consistently across on-premises data centers or VCF environments deployed on leading public clouds. Enabling Operationally Consistent Kubernetes: NetApp’s support for VMware vSphere Kubernetes Service (VKS) has been tested and validated to support VCF 9.1 environments, allowing customers to deploy modern containerized workloads while leveraging their existing investments in VMware tools and operational knowledge. A combined NetApp and VCF solution helps accelerate DevOps workflows, CI/CD integration and micro-services-based application development to build and scale distributed systems, running on the same VCF 9.1 and NetApp ONTAP infrastructure used to run traditional virtualized applications. This convergence of VM and container management on a single platform, backed by NetApp’s data infrastructure, gives IT teams a consistent operational model as they modernize. “Broadcom and NetApp have long collaborated on solutions that help organizations simplify operations, protect critical data, and innovate faster,” said Paul Turner, Chief Product Officer, VMware Cloud Foundation Division at Broadcom. “With VCF 9.1, we are delivering an AI- and Kubernetes-native private cloud platform that maximizes infrastructure efficiency and security. Because NetApp’s solutions are tested and validated to support VCF 9.1 environments, our mutual customers can adopt these innovations with a data infrastructure foundation that is proven and ready.”

To learn more about how NetApp can consistently and securely support data in VMware environments, visit the NetApp booth #109 at VMware Explore 2026, August 31–September 3 at The Venetian in Las Vegas.

Additional Resources

Empowering Customer Innovation Together with VMware NetApp and VMware: Any Workload, Any App, Anywhere NetApp Acquires JetStream Software to Advance Cyber Resilience and Data Protection for the AI Era Register for NetApp INSIGHT 2026 About NetApp

For more than three decades, NetApp has helped the world’s leading organizations navigate change – from the rise of enterprise storage to the intelligent era defined by data and AI. Today, NetApp is the Intelligent Data Infrastructure company, helping customers turn data into a catalyst for innovation, resilience, and growth.

At the heart of that infrastructure is the NetApp data platform – the unified, enterprise-grade, intelligent foundation that connects, protects, and activates data across every cloud, workload, and environment. Built on the proven power of NetApp ONTAP, our leading data management software and OS, and enhanced by automation through the AI Data Engine and AFX, it delivers observability, resilience, and intelligence at scale.

Disaggregated by design, the NetApp data platform separates storage, services, and control so enterprises can modernize faster, scale efficiently, and innovate without lock-in. As the only enterprise storage platform natively embedded in the world’s largest clouds, it gives organizations the freedom to run any workload anywhere with consistent performance, governance, and protection.

With NetApp, data is always ready – ready to defend against threats, ready to power AI, and ready to drive the next breakthrough. That’s why the world’s most forward-thinking enterprises trust NetApp to turn intelligence into advantage.

Learn more at www.netapp.com or follow us on X, LinkedIn, Facebook, and Instagram.

NETAPP, the NETAPP logo, and the marks listed at www.netapp.com/TM are trademarks of NetApp, Inc. Other company and product names may be trademarks of their respective owners.

More News From NetApp

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The price trend for NetApp (NTAP - Free Report) has been bearish lately and the stock has lost 10.5% over the past two weeks. However, the formation of a hammer chart pattern in its last trading session indicates that the stock could witness a trend reversal soon, as bulls might have gained significant control over the price to help it find support.

While the formation of a hammer pattern is a technical indication of nearing a bottom with potential exhaustion of selling pressure, rising optimism among Wall Street analysts about the future earnings of this data storage company is a solid fundamental factor that enhances the prospects of a trend reversal for the stock.

Understanding Hammer Chart and the Technique to Trade ItThis is one of the popular price patterns in candlestick charting. A minor difference between the opening and closing prices forms a small candle body, and a higher difference between the low of the day and the open or close forms a long lower wick (or vertical line). The length of the lower wick being at least twice the length of the real body, the candle resembles a 'hammer.'

In simple terms, during a downtrend, with bears having absolute control, a stock usually opens lower compared to the previous day's close, and again closes lower. On the day the hammer pattern is formed, maintaining the downtrend, the stock makes a new low. However, after eventually finding support at the low of the day, some amount of buying interest emerges, pushing the stock up to close the session near or slightly above its opening price.

When it occurs at the bottom of a downtrend, this pattern signals that the bears might have lost control over the price. And, the success of bulls in stopping the price from falling further indicates a potential trend reversal.

Hammer candles can occur on any timeframe -- such as one-minute, daily, weekly -- and are utilized by both short-term as well as long-term investors.

Like every technical indicator, the hammer chart pattern has its limitations. Particularly, as the strength of a hammer depends on its placement on the chart, it should always be used in conjunction with other bullish indicators.

Here's What Makes the Trend Reversal More Likely for NTAPAn upward trend in earnings estimate revisions that NTAP has been witnessing lately can certainly be considered a bullish indicator on the fundamental side. That's because empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

The consensus EPS estimate for the current year has increased 2.5% over the last 30 days. This means that the Wall Street analysts covering NTAP are majorly in agreement about the company's potential to report better earnings than what they predicted earlier.

If this is not enough, you should note that NTAP currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. And stocks carrying a Zacks Rank #1 or 2 usually outperform the market. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Moreover, the Zacks Rank has proven to be an excellent timing indicator, helping investors identify precisely when a company's prospects are beginning to improve. So, for the shares of NetApp, a Zacks Rank of 2 is a more conclusive fundamental indication of a potential turnaround.

SAN JOSE, Calif.--(BUSINESS WIRE)--NetApp® (NASDAQ: NTAP), the Intelligent Data Infrastructure company, today announced it has been recognized by Gartner as a Leader in the 2026 Gartner Magic Quadrant for Enterprise Storage Platforms, continuing to acknowledge NetApp as a Leader in this market from its inaugural edition of this report in 2025. The evaluation was based on specific criteria that analyzed the company's overall Completeness of Vision and Ability to Execute. Additionally, the 2026 G.

The market expects NetApp (NTAP - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended July 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on September 2. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis data storage company is expected to post quarterly earnings of $2.12 per share in its upcoming report, which represents a year-over-year change of +36.8%.

Revenues are expected to be $1.84 billion, up 18.2% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 1.01% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for NetApp?For NetApp, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +3.77%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination indicates that NetApp will most likely beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that NetApp would post earnings of $2.27 per share when it actually produced earnings of $2.43, delivering a surprise of +7.05%.

Over the last four quarters, the company has beaten consensus EPS estimates four times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

NetApp appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Key Takeaways NetApp's Public Cloud revenue rose 11% year over year to $182 million in fiscal Q4 2026.First-party and marketplace cloud services grew 30% for fiscal 2026, extending NetApp's cloud reach.Public Cloud gross margin hit 85.7%, while AI activity and enterprise IT demand support fiscal 2027 momentum. NetApp, Inc.’s (NTAP - Free Report) Public Cloud business is benefiting from sustained demand for hyperscaler first-party and marketplace storage services, supporting continued growth in the company’s cloud operations. Its fourth-quarter fiscal 2026 Public Cloud revenues were $182 million, increasing 11% year over year. Excluding the contribution from Spot in the prior-year period, growth was 18%, highlighting continued momentum in the business. For fiscal 2026, Public Cloud revenue totaled $688 million, while first-party and marketplace cloud services grew 30% for the year.

The growth reflects broader customer adoption of NetApp’s first-party and marketplace services. This expansion continues to support the Public Cloud business as customers increasingly use NetApp’s offerings across their cloud environments. The segment also maintains a high level of profitability, with Public Cloud gross margin reaching 85.7% in the fiscal fourth quarter. Such profitability provides support for earnings leverage as the Public Cloud business represents a larger part of the company’s overall mix.

NetApp’s fiscal 2027 outlook assumes continued momentum in enterprise IT demand and increasing AI activity. These trends are expected to support use cases that connect governed data with AI and analytics services in the cloud. As customers continue to extend their data environments into cloud platforms, first-party and marketplace cloud services remain important components of NetApp’s Public Cloud strategy.

Taking a Look at NTAP’s CompetitorsSeagate Technology Holdings plc (STX - Free Report) is gaining from strong data center demand, HAMR adoption and pricing discipline. Management expects cloud spending and AI-led storage demand to remain healthy. Demand visibility remains strong, with most nearline capacity allocated through calendar 2028 and customer commitments extending into 2029. Seagate's HAMR-based Mozaic roadmap, disciplined pricing and manufacturing efficiencies are expected to drive revenue growth, margin expansion and cash generation in fiscal 2027. Management anticipates fiscal first-quarter revenues of $4.1 billion (+/- $100 million). At the midpoint, this indicates a 56% year-over-year improvement.

Western Digital Corporation (WDC - Free Report) is benefiting from sustained demand for high-capacity storage as AI, cloud and data-intensive workloads expand. Its cloud end market, which accounts for 89% of total sales, grew 43%, driven by strong demand for high-capacity nearline drives and favorable pricing. HDDs continue to offer favorable economics for large-scale data retention, while higher-capacity ePMR, UltraSMR and upcoming HAMR products strengthen WD’s position with hyperscale customers. Longer customer agreements improve demand visibility and support predictable pricing. A richer product mix, lower cost per terabyte and operating leverage are supporting margin expansion and cash generation. For the first quarter of fiscal 2027, Western Digital expects non-GAAP revenues of $4.1 billion, plus or minus $100 million, representing 45% year-over-year growth at the midpoint.

NTAP Price Performance, Valuation & EstimatesShares of NetApp have gained 36.2% in the past three months against the Computer-Storage Devices industry’s decline of 7.1%.

Image Source: Zacks Investment Research

Regarding the price/book ratio, NTAP is trading at 28.16, higher than the industry’s multiple of 14.26.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for NTAP’s earnings for fiscal 2027 has been revised marginally upward over the past 60 days.

Image Source: Zacks Investment Research

NTAP currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways NetApp expects Q1 FY2027 sales of $1.75B-$1.90B, with an extra week adding about $65M of revenue.AI demand remains strong, with about 500 wins in Q4 and more than 1,100 for fiscal 2026.Cloud storage grew 30% in fiscal 2026, while Keystone benefits from the shift to consumption-based models. NetApp, Inc. (NTAP - Free Report) is slated to release first-quarter fiscal 2027 earnings on Sept. 2, after the closing bell.

The company expects non-GAAP earnings per share to be between $2.05 and $2.15 for the quarter. The Zacks Consensus Estimate is currently pegged at $2.12 per share, indicating 36.8% growth from the year-ago level.

Net sales are anticipated to be in the range between $1.750 billion and $1.900 billion. The Zacks Consensus Estimate is pegged at $1.84 billion, implying an 18.2% increase from the prior-year reported number.

NTAP’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 4.65%.

Key Factors to Note for NTAP’s Q1 EarningsNetApp is likely to have benefited from momentum across cloud, flash, AI and Keystone in first-quarter fiscal 2027, supported by a strong enterprise IT spending environment and increasing AI activity. In the last reported quarter, management anticipated IT spending to rise as enterprises prepared for AI, with demand across cloud, flash, AI and Keystone. The company is also likely to have benefited from broad-based demand as customers prioritized data infrastructure for AI. The first quarter included an extra week, which was expected to contribute about $65 million of revenue, mainly from Support and Cloud, while adding $21 million of operating expenses. Management anticipates first-quarter non-GAAP gross margin of 69.1-70.1% and operating margin of 28.4-29.4%.

AI remains a key growth driver for NetApp. The company reported approximately 500 AI wins in the fourth quarter and more than 1,100 for fiscal 2026 compared with roughly 400 for the entire prior fiscal year. These wins included enterprise and neocloud customers and covered data preparation, large-scale analytics, training, fine-tuning and inferencing. All elements of the flash portfolio performed strongly in enterprise AI configurations, while hybrid flash gained traction in less demanding AI environments. On the last earnings call, management highlighted AI strength to remain broad-based across segments, verticals and geographies.

All-flash storage is also benefiting from AI demand, with management noting particularly strong growth in AI use cases. NetApp’s installed-base penetration increased another 1% to 48%. The company raised prices during the fourth quarter, with pricing actions expected to increasingly flow through over the next one to two quarters. Management expects product gross margin to reach a trough in the July quarter and gradually improve as pricing actions offset higher component costs.

Public Cloud and Keystone are additional growth contributors. First-party and marketplace cloud storage services grew 30% year over year in fiscal 2026, while AI use cases are beginning to emerge in the cloud. Keystone continues to benefit from the shift toward consumption-based storage models and is expected to grow faster than the traditional business.

NetApp is also seeing opportunities from AFX, AI Data Engine, neo cloud and sovereign cloud customers. Meanwhile, the company continues to manage higher NAND and component costs through pricing actions, supplier diversification and supply-chain measures. On the last earnings call, management stated that it believed it could source adequate supply to meet its fiscal 2027 outlook, which might have benefited NTAP in the to-be-reported quarter.

However, the company is facing stiff competition, while changes in customer purchase timing could lead to volatility despite the healthy overall demand environment.

Recent DevelopmentsOn Aug. 6, 2026, NetApp acquired JetStream Software, which specializes in VMware disaster recovery and migration. The acquisition will aid NetApp in helping enterprises safeguard applications, speed up cloud migration and modernize infrastructure while ensuring cyber resilience.

On July 22, 2026, NetApp acquired DataPelago, a startup specializing in AI data infrastructure.  The deal expands NetApp's intelligent data infrastructure portfolio by bringing GPU-accelerated data processing directly to the storage layer, allowing organizations to process data where it resides instead of copying it to separate AI infrastructure. The acquisition is likely to strengthen NetApp's competitive position in the rapidly growing AI infrastructure market.

On June 23, 2026, NetApp launched StorageGRID 12.1 to improve distributed data management, helping customers scale AI workloads, data lakes and modern object-based applications more efficiently.

On June 3, 2026, NetApp and Cisco expanded their FlexPod platform with new validated AI solutions designed to simplify enterprise AI deployments, inferencing, RAG workflows and edge computing while enhancing security and scalability. The collaboration integrates technologies from NVIDIA to help organizations accelerate AI adoption with pre-tested, enterprise-grade infrastructure.

On the same day, NetApp and Splunk expanded their collaboration with a new SOAR playbook designed to help customers contain ransomware attacks, reduce data loss and strengthen cyber resilience. The solution combines NetApp’s Intelligent Data Infrastructure with Splunk’s analytics and observability capabilities to improve threat response and recovery efficiency.

What Our Model Says About NTAPOur proven model predicts an earnings beat for NTAP this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. This is the case here.

NTAP has an Earnings ESP of +3.77% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Other Stocks With Favorable CombinationHere are a few other companies worth considering, as our model indicates that they possess the right combination to exceed earnings expectations in their upcoming releases:

Ciena Corporation (CIEN - Free Report) currently has an Earnings ESP of +0.58% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for revenues and earnings is pegged at $1.64 billion and $1.73 per share, respectively. CIEN is slated to report third-quarter 2026 results on Sept. 3.

Dell Technologies Inc. (DELL - Free Report) has an Earnings ESP of +6.20% and a Zacks Rank #1 at present.

The Zacks Consensus Estimate for revenues and earnings is pegged at $45.3 billion and $4.95 per share, respectively. DELL is slated to report second-quarter fiscal 2027 results on Sept. 1.

lululemon athletica inc. (LULU - Free Report) currently has an Earnings ESP of +0.70% and a Zacks Rank #3.

The Zacks Consensus Estimate for revenues and earnings is pegged at $2.47 billion and $1.79 per share, respectively. LULU is scheduled to report second-quarter fiscal 2026 results on Sept. 3.

NetApp (NASDAQ:NTAP – Get Free Report) and HTC (OTCMKTS:HTCKF – Get Free Report) are both technology companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, risk, valuation, dividends and earnings.

Valuation & Earnings This table compares NetApp and HTC”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio NetApp $6.92 billion 5.30 $1.28 billion $6.36 29.41 HTC N/A N/A N/A $6.47 1.00 NetApp has higher revenue and earnings than HTC. HTC is trading at a lower price-to-earnings ratio than NetApp, indicating that it is currently the more affordable of the two stocks. Institutional & Insider Ownership 92.2% of NetApp shares are owned by institutional investors. Comparatively, 0.0% of HTC shares are owned by institutional investors. 0.4% of NetApp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability This table compares NetApp and HTC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets NetApp 18.43% 117.23% 13.09% HTC N/A N/A N/A Analyst Ratings This is a breakdown of recent ratings for NetApp and HTC, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score NetApp 0 10 5 0 2.33 HTC 0 0 0 0 0.00 NetApp presently has a consensus price target of $179.77, indicating a potential downside of 3.88%. Given NetApp’s stronger consensus rating and higher probable upside, research analysts plainly believe NetApp is more favorable than HTC.

Summary NetApp beats HTC on 10 of the 11 factors compared between the two stocks.

About NetApp (Get Free Report)

NetApp, Inc. provides cloud-led and data-centric services to manage and share data on-premises, and private and public clouds worldwide. It operates in two segments, Hybrid Cloud and Public Could. The company offers intelligent data management software, such as NetApp ONTAP, NetApp Snapshot, NetApp SnapCenter Backup Management, NetApp SnapMirror Data Replication, NetApp SnapLock Data Compliance, and storage infrastructure solutions, including NetApp All-Flash FAS series, NetApp Fabric Attached Storage, NetApp E/EF series, and NetApp StorageGRID. In addition, it provides cloud storage and data services comprising NetApp Cloud Volumes ONTAP, Azure NetApp Files, Amazon FSx for NetApp ONTAP, NetApp Cloud Volumes Service for Google Cloud, and cloud operations services, such as NetApp Cloud Insights, Spot by NetApp, and Instaclustr. Further, the company offers application-aware data management service under the NetApp Astra name; and professional and support services, such as strategic consulting, professional, managed, and support services. Additionally, it provides assessment, design, implementation, and migration services. The company serves the energy, financial service, government, technology, internet, life science, healthcare service, manufacturing, media, entertainment, animation, video postproduction, and markets through a direct sales force and an ecosystem of partners. NetApp, Inc. was incorporated in 1992 and is headquartered in San Jose, California.

About HTC (Get Free Report)

HTC Corporation, together with its subsidiaries, designs, manufactures, assembles, processes, and sells smart mobile and virtual reality devices in Taiwan and internationally. The company provides marketing, repair, and after sales services; and online/download media services, as well as human resources management services. In addition, it is involved in the general investing activities; design, research, and development of application software and graphics technology; design and management of cloud synchronization technology; and development and sale of digital education platform, as well as development of virtual reality contents. Further, the company provides app stores for virtual reality, where customers can explore, create, connect, and experience the content; and medical and healthcare, 5G connectivity, and blockchain technologies. It provides its products through online. The company has an agreement with Fantasy 360 Technologies Inc. HTC Corporation was incorporated in 1997 and is headquartered in Taoyuan, Taiwan.

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Shares of NetApp, Inc. (NASDAQ:NTAP – Get Free Report) have earned an average rating of “Hold” from the fifteen brokerages that are covering the stock, MarketBeat reports. Ten analysts have rated the stock with a hold recommendation and five have assigned a buy recommendation to the company. The average twelve-month price target among brokers that have updated their coverage on the stock in the last year is $179.7692.

NTAP has been the topic of several research analyst reports. Evercore set a $210.00 target price on NetApp in a research report on Monday, August 24th. Wedbush lifted their target price on NetApp from $115.00 to $150.00 and gave the stock a “neutral” rating in a report on Friday, May 29th. Bank of America boosted their price target on NetApp from $125.00 to $150.00 and gave the company a “neutral” rating in a research note on Friday, May 29th. Argus increased their price target on NetApp from $130.00 to $200.00 and gave the stock a “buy” rating in a report on Monday, June 1st. Finally, Wells Fargo & Company increased their price target on NetApp from $115.00 to $180.00 and gave the stock an “equal weight” rating in a report on Friday, May 29th.

Get Our Latest Report on NetApp

Insiders Place Their Bets In related news, EVP Elizabeth M. O’callahan sold 1,000 shares of the business’s stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $193.82, for a total value of $193,820.00. Following the transaction, the executive vice president directly owned 30,297 shares of the company’s stock, valued at approximately $5,872,164.54. The trade was a 3.20% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, President Cesar Cernuda sold 2,608 shares of the stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $204.48, for a total transaction of $533,283.84. Following the transaction, the president owned 46,530 shares of the company’s stock, valued at approximately $9,514,454.40. The trade was a 5.31% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 55,072 shares of company stock valued at $8,719,520 over the last 90 days. Corporate insiders own 0.36% of the company’s stock. Institutional Investors Weigh In On NetApp Several large investors have recently modified their holdings of NTAP. California State Teachers Retirement System increased its position in NetApp by 15,681.5% in the second quarter. California State Teachers Retirement System now owns 48,620,175 shares of the data storage provider’s stock worth $7,524,458,000 after buying an additional 48,312,092 shares during the last quarter. BlackRock Inc. purchased a new position in shares of NetApp during the 2nd quarter valued at $2,925,168,000. Primecap Management Co. CA purchased a new position in shares of NetApp during the 2nd quarter valued at $1,395,423,000. Norges Bank bought a new position in shares of NetApp during the 4th quarter worth $458,060,000. Finally, First Trust Advisors LP grew its stake in shares of NetApp by 127.0% during the 1st quarter. First Trust Advisors LP now owns 3,658,066 shares of the data storage provider’s stock worth $374,549,000 after acquiring an additional 2,046,912 shares during the period. Hedge funds and other institutional investors own 92.17% of the company’s stock.

NetApp Price Performance Shares of NASDAQ NTAP opened at $187.02 on Friday. The company has a market capitalization of $36.70 billion, a PE ratio of 29.41, a P/E/G ratio of 3.33 and a beta of 1.45. The company has a quick ratio of 1.39, a current ratio of 1.44 and a debt-to-equity ratio of 1.84. NetApp has a twelve month low of $93.69 and a twelve month high of $209.06. The firm has a fifty day simple moving average of $175.90 and a 200 day simple moving average of $138.27.

NetApp (NASDAQ:NTAP – Get Free Report) last issued its quarterly earnings results on Thursday, May 28th. The data storage provider reported $2.03 EPS for the quarter, missing analysts’ consensus estimates of $2.27 by ($0.24). NetApp had a net margin of 18.43% and a return on equity of 117.23%. The firm had revenue of $1.95 billion for the quarter, compared to the consensus estimate of $1.87 billion. During the same period last year, the company posted $1.93 EPS. The business’s revenue was up 12.5% compared to the same quarter last year. On average, sell-side analysts forecast that NetApp will post 7.34 EPS for the current year.

About NetApp (Get Free Report)

NetApp, Inc (NASDAQ: NTAP) is a data management and storage company that delivers hybrid cloud data services for applications and data. Founded in 1992 as Network Appliance and rebranded as NetApp in 2008, the company is headquartered in Sunnyvale, California. NetApp’s offering focuses on enabling organizations to store, manage, protect and move data across on-premises environments and major public clouds.

The company’s product portfolio centers on the ONTAP data management software and a range of storage systems and services built around it.

Further Reading Five stocks we like better than NetApp Strike a Balance Between Growth and Stability With These 3 Names Ready to Rally Rubrik’s AI Security Bet Could Power the Next Leg Higher Apple’s Foldable iPhone Could Be a Catalyst, But Not a Cure-All Snowflake Is Up Nearly 50% in 2026—What Are Short Sellers Betting Against?

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If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider NetApp (NTAP - Free Report) . This company, which is in the Zacks Computer- Storage Devices industry, shows potential for another earnings beat.

This data storage company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 4.73%.

For the most recent quarter, NetApp was expected to post earnings of $2.27 per share, but it reported $2.43 per share instead, representing a surprise of 7.05%. For the previous quarter, the consensus estimate was $2.07 per share, while it actually produced $2.12 per share, a surprise of 2.42%.

Price and EPS Surprise

Thanks in part to this history, there has been a favorable change in earnings estimates for NetApp lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

NetApp currently has an Earnings ESP of +3.77%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #2 (Buy) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on September 2, 2026.

Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.

Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.

Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Emerald Investment Advisers LLC acquired a new position in shares of NetApp, Inc. (NASDAQ:NTAP – Free Report) in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund acquired 13,743 shares of the data storage provider’s stock, valued at approximately $2,127,000.

Several other hedge funds have also added to or reduced their stakes in NTAP. Geneos Wealth Management Inc. increased its stake in shares of NetApp by 38.3% during the first quarter. Geneos Wealth Management Inc. now owns 759 shares of the data storage provider’s stock valued at $67,000 after buying an additional 210 shares during the period. Sivia Capital Partners LLC purchased a new stake in NetApp in the second quarter worth $315,000. Cerity Partners LLC boosted its holdings in NetApp by 9.9% in the second quarter. Cerity Partners LLC now owns 46,792 shares of the data storage provider’s stock valued at $4,986,000 after acquiring an additional 4,232 shares in the last quarter. Bank of Nova Scotia boosted its holdings in NetApp by 7.3% in the second quarter. Bank of Nova Scotia now owns 24,301 shares of the data storage provider’s stock valued at $2,589,000 after acquiring an additional 1,662 shares in the last quarter. Finally, NewEdge Advisors LLC increased its position in NetApp by 12.7% during the 2nd quarter. NewEdge Advisors LLC now owns 20,161 shares of the data storage provider’s stock valued at $2,148,000 after purchasing an additional 2,277 shares during the period. 92.17% of the stock is owned by institutional investors.

Insider Activity at NetApp In other NetApp news, CAO Lorenzo Daniel De sold 225 shares of the stock in a transaction on Monday, June 1st. The stock was sold at an average price of $171.09, for a total transaction of $38,495.25. Following the sale, the chief accounting officer directly owned 1,090 shares in the company, valued at approximately $186,488.10. This trade represents a 17.11% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP Elizabeth M. O’callahan sold 1,000 shares of the business’s stock in a transaction on Monday, August 10th. The stock was sold at an average price of $193.82, for a total value of $193,820.00. Following the completion of the transaction, the executive vice president owned 30,297 shares of the company’s stock, valued at $5,872,164.54. This represents a 3.20% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 55,297 shares of company stock valued at $8,758,016 over the last 90 days. Corporate insiders own 0.36% of the company’s stock.

NetApp Trading Down 0.3% NASDAQ NTAP opened at $192.27 on Friday. NetApp, Inc. has a 12 month low of $93.69 and a 12 month high of $209.06. The company has a current ratio of 1.44, a quick ratio of 1.39 and a debt-to-equity ratio of 1.84. The stock’s fifty day moving average price is $172.93 and its 200-day moving average price is $134.89. The stock has a market cap of $37.73 billion, a P/E ratio of 30.23, a P/E/G ratio of 3.45 and a beta of 1.45. NetApp (NASDAQ:NTAP – Get Free Report) last posted its quarterly earnings results on Thursday, May 28th. The data storage provider reported $2.03 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.27 by ($0.24). NetApp had a return on equity of 117.23% and a net margin of 18.43%.The company had revenue of $1.95 billion during the quarter, compared to analysts’ expectations of $1.87 billion. During the same period in the prior year, the firm earned $1.93 EPS. NetApp’s revenue for the quarter was up 12.5% compared to the same quarter last year. NetApp has set its FY 2027 guidance at 8.700-9.000 EPS and its Q1 2027 guidance at 2.050-2.150 EPS. As a group, equities analysts forecast that NetApp, Inc. will post 7.32 EPS for the current fiscal year.

NetApp Announces Dividend The company also recently announced a quarterly dividend, which was paid on Wednesday, July 29th. Stockholders of record on Friday, July 10th were paid a $0.52 dividend. This represents a $2.08 annualized dividend and a dividend yield of 1.1%. The ex-dividend date was Friday, July 10th. NetApp’s dividend payout ratio is currently 32.70%.

Analysts Set New Price Targets Several brokerages have commented on NTAP. UBS Group reaffirmed a “neutral” rating and issued a $160.00 target price on shares of NetApp in a research report on Friday, May 29th. The Goldman Sachs Group reiterated a “buy” rating and set a $200.00 price target on shares of NetApp in a research report on Tuesday, June 2nd. Morgan Stanley raised shares of NetApp from an “underweight” rating to an “equal weight” rating and increased their price target for the stock from $137.00 to $173.00 in a research note on Monday, August 10th. Susquehanna lifted their price objective on NetApp from $110.00 to $185.00 and gave the company a “neutral” rating in a research report on Friday, May 29th. Finally, Citigroup lifted their price target on NetApp from $150.00 to $209.00 and gave the company a “neutral” rating in a research report on Tuesday. Five analysts have rated the stock with a Buy rating and ten have given a Hold rating to the stock. According to data from MarketBeat, NetApp has a consensus rating of “Hold” and a consensus price target of $177.25.

View Our Latest Stock Report on NTAP

NetApp Profile (Free Report)

NetApp, Inc (NASDAQ: NTAP) is a data management and storage company that delivers hybrid cloud data services for applications and data. Founded in 1992 as Network Appliance and rebranded as NetApp in 2008, the company is headquartered in Sunnyvale, California. NetApp’s offering focuses on enabling organizations to store, manage, protect and move data across on-premises environments and major public clouds.

The company’s product portfolio centers on the ONTAP data management software and a range of storage systems and services built around it.

Further Reading Five stocks we like better than NetApp 2 Biotech Stocks Shaping Up for Major Breakouts 3 Stocks Came Roaring Back—Now They’re Flashing Warning Signs 3 Beaten-Down Stocks That Haven’t Gotten the Message About the S&P 500’s Record Run Darden Restaurants Just Hit a 52-Week High–Is the Olive Garden Comeback Story Legit? Want to see what other hedge funds are holding NTAP? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for NetApp, Inc. (NASDAQ:NTAP – Free Report).

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Callan Family Office LLC bought a new stake in shares of NetApp, Inc. (NASDAQ:NTAP – Free Report) during the 2nd quarter, according to the company in its most recent 13F filing with the SEC. The fund bought 14,178 shares of the data storage provider’s stock, valued at approximately $2,194,000.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Park Square Financial Group LLC raised its position in NetApp by 68.7% in the fourth quarter. Park Square Financial Group LLC now owns 253 shares of the data storage provider’s stock valued at $29,000 after purchasing an additional 103 shares during the period. Gen Wealth Partners Inc purchased a new stake in shares of NetApp in the fourth quarter worth about $30,000. DV Equities LLC purchased a new stake in shares of NetApp in the fourth quarter worth about $30,000. Roble Belko & Company Inc acquired a new stake in shares of NetApp in the first quarter valued at about $31,000. Finally, Torren Management LLC acquired a new stake in shares of NetApp in the fourth quarter valued at about $34,000. Institutional investors and hedge funds own 92.17% of the company’s stock.

NetApp Trading Down 0.3% NASDAQ:NTAP opened at $192.27 on Friday. The stock has a market cap of $37.73 billion, a price-to-earnings ratio of 30.23, a price-to-earnings-growth ratio of 3.45 and a beta of 1.45. NetApp, Inc. has a one year low of $93.69 and a one year high of $209.06. The company has a debt-to-equity ratio of 1.84, a quick ratio of 1.39 and a current ratio of 1.44. The business’s 50-day simple moving average is $172.93 and its 200 day simple moving average is $134.89.

NetApp (NASDAQ:NTAP – Get Free Report) last issued its quarterly earnings data on Thursday, May 28th. The data storage provider reported $2.03 earnings per share for the quarter, missing analysts’ consensus estimates of $2.27 by ($0.24). NetApp had a net margin of 18.43% and a return on equity of 117.23%. The business had revenue of $1.95 billion for the quarter, compared to analyst estimates of $1.87 billion. During the same quarter last year, the business earned $1.93 EPS. NetApp’s revenue for the quarter was up 12.5% compared to the same quarter last year. NetApp has set its FY 2027 guidance at 8.700-9.000 EPS and its Q1 2027 guidance at 2.050-2.150 EPS. As a group, sell-side analysts predict that NetApp, Inc. will post 7.32 earnings per share for the current fiscal year. NetApp Dividend Announcement The business also recently declared a quarterly dividend, which was paid on Wednesday, July 29th. Investors of record on Friday, July 10th were paid a $0.52 dividend. This represents a $2.08 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date was Friday, July 10th. NetApp’s payout ratio is 32.70%.

Wall Street Analysts Forecast Growth NTAP has been the topic of several recent research reports. Morgan Stanley raised NetApp from an “underweight” rating to an “equal weight” rating and boosted their price target for the stock from $137.00 to $173.00 in a research report on Monday, August 10th. Argus increased their price objective on shares of NetApp from $130.00 to $200.00 and gave the company a “buy” rating in a research report on Monday, June 1st. UBS Group reiterated a “neutral” rating and set a $160.00 price objective on shares of NetApp in a research note on Friday, May 29th. Bank of America boosted their target price on shares of NetApp from $125.00 to $150.00 and gave the stock a “neutral” rating in a research report on Friday, May 29th. Finally, JPMorgan Chase & Co. upped their target price on shares of NetApp from $110.00 to $150.00 and gave the company a “neutral” rating in a research note on Friday, May 29th. Five investment analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and an average price target of $177.25.

Get Our Latest Stock Report on NTAP

Insider Activity at NetApp In other NetApp news, CAO Lorenzo Daniel De sold 225 shares of the stock in a transaction on Monday, June 1st. The shares were sold at an average price of $171.09, for a total transaction of $38,495.25. Following the transaction, the chief accounting officer directly owned 1,090 shares in the company, valued at $186,488.10. This represents a 17.11% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, EVP Elizabeth M. O’callahan sold 1,000 shares of the firm’s stock in a transaction on Monday, August 10th. The stock was sold at an average price of $193.82, for a total transaction of $193,820.00. Following the transaction, the executive vice president directly owned 30,297 shares of the company’s stock, valued at approximately $5,872,164.54. This represents a 3.20% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 55,297 shares of company stock valued at $8,758,016 over the last ninety days. Corporate insiders own 0.36% of the company’s stock.

About NetApp (Free Report)

NetApp, Inc (NASDAQ: NTAP) is a data management and storage company that delivers hybrid cloud data services for applications and data. Founded in 1992 as Network Appliance and rebranded as NetApp in 2008, the company is headquartered in Sunnyvale, California. NetApp’s offering focuses on enabling organizations to store, manage, protect and move data across on-premises environments and major public clouds.

The company’s product portfolio centers on the ONTAP data management software and a range of storage systems and services built around it.

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Advisors Capital Management LLC acquired a new position in NetApp, Inc. (NASDAQ:NTAP – Free Report) during the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund acquired 3,590 shares of the data storage provider’s stock, valued at approximately $556,000.

Other large investors have also added to or reduced their stakes in the company. West Financial Advisors LLC bought a new stake in shares of NetApp during the 2nd quarter worth approximately $37,000. Park Square Financial Group LLC grew its stake in shares of NetApp by 68.7% in the fourth quarter. Park Square Financial Group LLC now owns 253 shares of the data storage provider’s stock valued at $29,000 after buying an additional 103 shares in the last quarter. Gen Wealth Partners Inc acquired a new position in NetApp during the fourth quarter worth $30,000. DV Equities LLC acquired a new position in NetApp during the fourth quarter worth $30,000. Finally, Measured Wealth Private Client Group LLC bought a new stake in NetApp during the third quarter worth $35,000. Institutional investors and hedge funds own 92.17% of the company’s stock.

Analyst Ratings Changes A number of analysts have commented on the stock. Barclays increased their price target on shares of NetApp from $120.00 to $199.00 and gave the company an “overweight” rating in a research note on Friday, May 29th. Bank of America upped their target price on shares of NetApp from $125.00 to $150.00 and gave the company a “neutral” rating in a report on Friday, May 29th. Argus raised their target price on shares of NetApp from $130.00 to $200.00 and gave the company a “buy” rating in a research note on Monday, June 1st. Citigroup lifted their price target on NetApp from $150.00 to $209.00 and gave the stock a “neutral” rating in a report on Tuesday. Finally, The Goldman Sachs Group reissued a “buy” rating and set a $200.00 price target on shares of NetApp in a research report on Tuesday, June 2nd. Five investment analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $177.25.

Get Our Latest Analysis on NetApp NetApp Stock Down 0.3% NetApp stock opened at $192.27 on Friday. The stock has a market cap of $37.73 billion, a P/E ratio of 30.23, a P/E/G ratio of 3.46 and a beta of 1.45. The company has a quick ratio of 1.39, a current ratio of 1.44 and a debt-to-equity ratio of 1.84. NetApp, Inc. has a twelve month low of $93.69 and a twelve month high of $209.06. The company’s 50-day moving average price is $172.93 and its two-hundred day moving average price is $134.89.

NetApp (NASDAQ:NTAP – Get Free Report) last issued its quarterly earnings data on Thursday, May 28th. The data storage provider reported $2.03 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.27 by ($0.24). NetApp had a return on equity of 117.23% and a net margin of 18.43%.The firm had revenue of $1.95 billion for the quarter, compared to the consensus estimate of $1.87 billion. During the same quarter in the prior year, the firm earned $1.93 EPS. The company’s revenue was up 12.5% on a year-over-year basis. NetApp has set its FY 2027 guidance at 8.700-9.000 EPS and its Q1 2027 guidance at 2.050-2.150 EPS. As a group, analysts expect that NetApp, Inc. will post 7.3 EPS for the current year.

NetApp Announces Dividend The company also recently declared a quarterly dividend, which was paid on Wednesday, July 29th. Investors of record on Friday, July 10th were paid a $0.52 dividend. The ex-dividend date was Friday, July 10th. This represents a $2.08 annualized dividend and a yield of 1.1%. NetApp’s payout ratio is 32.70%.

Insider Buying and Selling at NetApp In related news, EVP Elizabeth M. O’callahan sold 1,000 shares of the firm’s stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $193.82, for a total transaction of $193,820.00. Following the transaction, the executive vice president directly owned 30,297 shares of the company’s stock, valued at approximately $5,872,164.54. This trade represents a 3.20% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CAO Lorenzo Daniel De sold 225 shares of NetApp stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $171.09, for a total transaction of $38,495.25. Following the completion of the sale, the chief accounting officer owned 1,090 shares of the company’s stock, valued at $186,488.10. This trade represents a 17.11% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 55,297 shares of company stock valued at $8,758,016 in the last ninety days. 0.36% of the stock is currently owned by corporate insiders.

NetApp Company Profile (Free Report)

NetApp, Inc (NASDAQ: NTAP) is a data management and storage company that delivers hybrid cloud data services for applications and data. Founded in 1992 as Network Appliance and rebranded as NetApp in 2008, the company is headquartered in Sunnyvale, California. NetApp’s offering focuses on enabling organizations to store, manage, protect and move data across on-premises environments and major public clouds.

The company’s product portfolio centers on the ONTAP data management software and a range of storage systems and services built around it.

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Aurora Investment Counsel bought a new stake in shares of NetApp, Inc. (NASDAQ:NTAP – Free Report) in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor bought 13,536 shares of the data storage provider’s stock, valued at approximately $2,095,000.

Several other large investors also recently modified their holdings of the stock. Park Square Financial Group LLC raised its holdings in shares of NetApp by 68.7% in the 4th quarter. Park Square Financial Group LLC now owns 253 shares of the data storage provider’s stock worth $29,000 after purchasing an additional 103 shares during the period. Gen Wealth Partners Inc bought a new position in NetApp during the fourth quarter valued at $30,000. DV Equities LLC purchased a new stake in NetApp in the fourth quarter worth $30,000. Roble Belko & Company Inc purchased a new stake in NetApp in the first quarter worth $31,000. Finally, Torren Management LLC bought a new stake in shares of NetApp in the fourth quarter valued at $34,000. Hedge funds and other institutional investors own 92.17% of the company’s stock.

Wall Street Analysts Forecast Growth A number of brokerages have recently commented on NTAP. The Goldman Sachs Group reaffirmed a “buy” rating and set a $200.00 price target on shares of NetApp in a research report on Tuesday, June 2nd. Susquehanna lifted their price objective on NetApp from $110.00 to $185.00 and gave the stock a “neutral” rating in a report on Friday, May 29th. Wall Street Zen cut NetApp from a “strong-buy” rating to a “buy” rating in a research note on Wednesday, July 29th. Northland Securities upped their price objective on shares of NetApp from $137.00 to $171.00 and gave the company an “outperform” rating in a report on Friday, May 29th. Finally, Wells Fargo & Company lifted their target price on shares of NetApp from $115.00 to $180.00 and gave the stock an “equal weight” rating in a research note on Friday, May 29th. Five investment analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus price target of $177.25.

View Our Latest Stock Report on NTAP Insider Transactions at NetApp In other news, President Cesar Cernuda sold 2,608 shares of the firm’s stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $204.48, for a total value of $533,283.84. Following the completion of the transaction, the president directly owned 46,530 shares in the company, valued at approximately $9,514,454.40. This trade represents a 5.31% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Elizabeth M. O’callahan sold 1,000 shares of the firm’s stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $193.82, for a total transaction of $193,820.00. Following the completion of the transaction, the executive vice president owned 30,297 shares of the company’s stock, valued at $5,872,164.54. This trade represents a 3.20% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 55,297 shares of company stock valued at $8,758,016. 0.36% of the stock is currently owned by corporate insiders.

NetApp Trading Down 5.0% NASDAQ:NTAP opened at $194.48 on Thursday. NetApp, Inc. has a 1 year low of $93.69 and a 1 year high of $209.06. The stock’s fifty day moving average price is $171.67 and its two-hundred day moving average price is $133.81. The company has a debt-to-equity ratio of 1.84, a current ratio of 1.44 and a quick ratio of 1.39. The company has a market cap of $38.16 billion, a P/E ratio of 30.58, a P/E/G ratio of 3.67 and a beta of 1.45.

NetApp (NASDAQ:NTAP – Get Free Report) last announced its quarterly earnings results on Thursday, May 28th. The data storage provider reported $2.03 earnings per share for the quarter, missing the consensus estimate of $2.27 by ($0.24). NetApp had a net margin of 18.43% and a return on equity of 117.23%. The company had revenue of $1.95 billion during the quarter, compared to analysts’ expectations of $1.87 billion. During the same quarter last year, the firm posted $1.93 earnings per share. NetApp’s revenue for the quarter was up 12.5% compared to the same quarter last year. NetApp has set its FY 2027 guidance at 8.700-9.000 EPS and its Q1 2027 guidance at 2.050-2.150 EPS. As a group, analysts expect that NetApp, Inc. will post 7.3 EPS for the current year.

NetApp Dividend Announcement The business also recently declared a quarterly dividend, which was paid on Wednesday, July 29th. Stockholders of record on Friday, July 10th were given a dividend of $0.52 per share. The ex-dividend date was Friday, July 10th. This represents a $2.08 annualized dividend and a dividend yield of 1.1%. NetApp’s dividend payout ratio is currently 32.70%.

NetApp Profile (Free Report)

NetApp, Inc (NASDAQ: NTAP) is a data management and storage company that delivers hybrid cloud data services for applications and data. Founded in 1992 as Network Appliance and rebranded as NetApp in 2008, the company is headquartered in Sunnyvale, California. NetApp’s offering focuses on enabling organizations to store, manage, protect and move data across on-premises environments and major public clouds.

The company’s product portfolio centers on the ONTAP data management software and a range of storage systems and services built around it.

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