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Jan 24, 2025
NetApp Q3 2025 Earnings Report
NetApp reported a slight increase in revenue but a decline in net income compared to the previous year, with strong growth in cloud storage services.
Key Takeaways
NetApp reported revenue of $1.64 billion for Q3 FY25, a 2% increase year-over-year. Net income was $299 million, down from $313 million in Q3 FY24. The company maintained strong growth in its cloud storage segment, with first-party and marketplace cloud storage revenue increasing over 40%. Non-GAAP EPS was $1.91, while GAAP EPS was $1.44.
Revenue increased 2% year-over-year to $1.64 billion.
Net income decreased to $299 million from $313 million in Q3 FY24.
Public Cloud segment revenue grew 15% year-over-year to $174 million.
Returned $306 million to stockholders through share repurchases and dividends.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
NetApp expects revenue to be between $1.65 billion and $1.80 billion in Q4 FY25, with continued growth in cloud services and stable operating margins.
Positive Outlook
- Revenue guidance for Q4 FY25 ranges from $1.65 billion to $1.80 billion.
- Non-GAAP operating margin expected between 28% and 28.5%.
- Cloud storage services expected to maintain over 40% year-over-year growth.
- New product launches in AI and hybrid cloud solutions expected to drive demand.
- Company remains committed to returning capital to shareholders via dividends and buybacks.
Challenges Ahead
- GAAP operating margin expected to remain under pressure at 20%-20.5%.
- Continued macroeconomic uncertainty may impact enterprise IT spending.
- Higher interest expense expected to impact net income.
- Stock-based compensation expenses projected to remain high.
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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