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Jul 25
NetApp Q1 2026 Earnings Report
NetApp reported steady performance in Q1 FY26 with modest revenue growth and strong cash flow generation.
Key Takeaways
NetApp delivered a solid Q1 FY26 with $1.56B in revenue and $233M in net income, supported by strong growth in public cloud services and all-flash storage leadership.
Achieved #1 market share in all-flash storage.
Generated record Q1 free cash flow of $620M.
Public Cloud revenue grew to $161M.
Returned $404M to shareholders via repurchases and dividends.
NetApp
NetApp
NetApp Revenue by Segment
NetApp Revenue by Geographic Location
Revenue by Segment
Hybrid Cloud Revenue
CapyFin.comPublic Cloud Revenue
CapyFin.comRevenue by Geographic Location
Americas Revenue
CapyFin.comEMEA Revenue
CapyFin.comAsia Pacific Revenue
CapyFin.com Forward Guidance
NetApp expects Q2 FY26 revenue between $1.615B and $1.765B, with improved EPS and operating margins driven by continued momentum in hybrid and AI-ready storage.
Positive Outlook
- Q2 revenue guidance up to $1.765B.
- Non-GAAP EPS projected at $1.84–$1.94.
- Operating margins expected to expand.
- Continued growth in Public Cloud revenue.
- Momentum in AI and cyber-resilient solutions.
Challenges Ahead
- GAAP EPS expected to decline sequentially.
- GAAP gross margin could compress to 69.5%.
- Foreign currency headwinds impacted Q1.
- Public sector revenue share declined YoY.
- Higher inventory turnover indicates supply-side pressures.
Revenue & Expenses
Visualization of income flow from segment revenue to net income