NetApp Q1 2025 Earnings Report
Key Takeaways
NetApp reported Q1 2025 results with net revenues of $1.54 billion, an 8% year-over-year increase. The company achieved record first quarter GAAP operating margin of 18% and non-GAAP operating margin of 26%. GAAP net income per share was $1.17, and non-GAAP net income per share was $1.56.
Net revenues reached $1.54 billion, an 8% year-over-year increase.
All-flash array annualized net revenue run rate was $3.4 billion, a 21% year-over-year increase.
First party and marketplace cloud storage services revenue grew approximately 40% year-over-year.
Returned $507 million to stockholders through share repurchases and cash dividends.
NetApp
NetApp
Forward Guidance
The Company provided the following financial guidance for the second quarter of fiscal year 2025: Net revenues are expected to be in the range of: $1.565 billion - $1.715 billion, GAAP Earnings per share is expected to be in the range of: $1.27 - 1.37, Non-GAAP Earnings per share is expected to be in the range of: $1.73 - $1.83 The Company provided the following update to financial guidance for the full fiscal year 2025: Net revenues are expected to be in the range of: $6.480 billion - $6.680 billion, GAAP Consolidated gross margins are expected to be in the range of: 70% - 71%, Non-GAAP Consolidated gross margins are expected to be in the range of: 71% - 72%, Operating margins are expected to be in the range of: 20% - 21%, Non-GAAP Operating margins are expected to be in the range of: 27% - 28%, Earnings per share is expected to be in the range of: $5.17 - $5.37, Non-GAAP Earnings per share is expected to be in the range of: $7.00 - $7.20
Positive Outlook
- Net revenues are expected to be in the range of $1.565 billion - $1.715 billion for Q2 2025.
- GAAP earnings per share is expected to be in the range of $1.27 - $1.37 for Q2 2025.
- Non-GAAP earnings per share is expected to be in the range of $1.73 - $1.83 for Q2 2025.
- Net revenues are expected to be in the range of $6.480 billion - $6.680 billion for fiscal year 2025.
- Non-GAAP Earnings per share is expected to be in the range of: $7.00 - $7.20 for fiscal year 2025.
Challenges Ahead
- GAAP Consolidated gross margins are expected to be in the range of: 70% - 71% for fiscal year 2025
- Operating margins are expected to be in the range of: 20% - 21% for fiscal year 2025
- GAAP Earnings per share is expected to be in the range of: $5.17 - $5.37 for fiscal year 2025
- Uncertain macroeconomic environment.
- Impact of supply chain disruptions on business operations, financial performance and results of operations.