NTAP earnings analysis
What we found in NTAP's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
NetApp delivered record quarterly revenue of $2.025 billion and a substantial non-GAAP EPS beat at $2.58, with growth led by all-flash arrays and Public Cloud. GAAP operating margin of 23.9% expanded meaningfully year over year despite a sequential decline, while GAAP EPS of $1.88 declined from $2.03 in the prior quarter. The company raised FY27 revenue and EPS outlook materially, supporting a bullish trend, although supplier commitments, change-of-control obligations, and acquisition-related dilution remain risks.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Record revenue beats consensus
- Revenue reached a record $2.025 billion, up approximately 3.8% from $1.95 billion in the prior quarter and 29.8% from $1.56 billion in the year-ago quarter; it exceeded the $1.837 billion consensus by 10.2%.
- Operating margin remains above year ago
- GAAP operating margin was 23.9%, down from 27.3% in the prior quarter but up from 19.8% in the year-ago quarter, representing a 340-basis-point sequential decline and 410-basis-point year-over-year expansion.
- Strong non-GAAP EPS beat
- GAAP EPS was $1.88 versus $2.03 in the prior quarter and $1.15 a year ago. Non-GAAP EPS was $2.58, exceeding the $2.04 consensus estimate by 26.5%.
- All-flash and cloud led growth
- Growth was led by all-flash array revenue of $1.309 billion and Public Cloud revenue of $206 million, although the filing data provided does not include comparable prior-period segment figures.
- FY27 outlook materially raised
- Management raised FY27 revenue guidance to $7.975-$8.225 billion from $7.325-$7.575 billion and GAAP EPS guidance to $7.35-$7.65 from $6.51-$6.81.
- Controls remained effective
- The CEO and CFO concluded that disclosure controls were effective as of July 31, 2026, and the company reported no material changes to internal control over financial reporting during the first quarter of fiscal 2027.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Demand risk and fixed commitments
- The updated operations risk disclosures state that the company makes firm, non-cancelable supplier commitments based on forecasted demand, creating potential excess or obsolete inventory and margin pressure if demand weakens. The 10-Q also reports $1.302 billion remaining under the share-repurchase program, highlighting significant ongoing capital allocation commitments.
- Higher change-of-control obligations
- The amended change-of-control agreements provide severance of 150% of annual base salary plus applicable bonus for covered executives, or 200% for the CEO, along with COBRA coverage for up to 18 months, or 24 months for the CEO.
- Acquisition and insider-sale overhang
- The company issued 28,706 shares to a former DataPelago shareholder and disclosed insider Rule 10b5-1 plans covering up to 150,000 shares for the CEO and 11,683 shares for the audit committee chair, creating potential dilution or stock-sale overhang.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $1.88
- Operating margin
- 23.9%
- Segment
- All-flash array revenue: $1.309 billion.
- Segment
- Public Cloud revenue: $206 million.
What they said about what is next.
FY27 GAAP EPS outlook was raised from $6.51-$6.81 to $7.35-$7.65, while FY27 revenue outlook was raised from $7.325-$7.575 billion to $7.975-$8.225 billion. Q2 FY27 guidance was $2.025-$2.175 billion of revenue and $1.97-$2.07 of GAAP EPS.
The filing reads better than the one before it.
What came before.
- 10-K · June 5, 2026
- NetApp, Inc. reported its fiscal year 2026 results showing a revenue increase to $6.925 billion, up 5% from fiscal 2025, primarily due to growth in the hybrid and public cloud segments. The company achieved a diluted…
- 10-Q · February 26, 2026
- NetApp (NTAP) reported strong Q3 results with revenues of $1.71 billion and EPS of $2.12, surpassing estimates. Gross margins were stable at 70.6%, while operating expenses decreased relative to revenue growth.…
- 10-Q · November 25, 2025
- NetApp (NTAP) reported strong Q2 2026 results with revenue rising to $1.71 billion, a 6.03% year-over-year increase, and EPS of $2.05, exceeding estimates by 18.5%. The robust performance was primarily driven by growth…
- 10-Q · August 27, 2025
- NetApp, Inc. reported a solid Q1 for fiscal 2026 with revenue of $1.56 billion, exceeding expectations. Gross margin improved to 70.4%, while diluted EPS came in at $1.15, reflecting a year-over-year decline but above…
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