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Jan 24
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.
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 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.
- Foreign exchange volatility could affect international revenue.
Revenue & Expenses
Visualization of income flow from segment revenue to net income