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Jul 25, 2025
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.
Revenue by Segment
Revenue by Geographic Location
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
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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