# NetApp (NTAP) Q1 2026 Financial Results Summary
**Release Date**: August 27, 2025
NetApp (NASDAQ: NTAP) reported its financial results for the first quarter of fiscal year 2026, which ended on July 25, 2025. Below is the summary of key financial highlights and metrics compared to Q1 FY 2025.
### Key Financial Metrics
– **Net Revenues**:
– Q1 FY 2026: $1,559 million
– Q1 FY 2025: $1,541 million
– **Change**: +1%
– **Hybrid Cloud Segment Revenue**:
– Q1 FY 2026: $1,398 million
– Q1 FY 2025: $1,382 million
– **Change**: +1%
– **Public Cloud Segment Revenue**:
– Q1 FY 2026: $161 million
– Q1 FY 2025: $159 million
– **Change**: +1%
– **Gross Profit**:
– Q1 FY 2026: $1,098 million
– Q1 FY 2025: $1,098 million
– **Change**: No change
– **Net Income**:
– Q1 FY 2026: $233 million
– Q1 FY 2025: $248 million
– **Change**: -6%
– **Earnings Per Share**:
– Q1 FY 2026: $1.15
– Q1 FY 2025: $1.17
– **Change**: -2%
– **Billings**:
– Q1 FY 2026: $1,511 million
– Q1 FY 2025: $1,449 million
– **Change**: +4%
– **Cash Provided by Operations**:
– Q1 FY 2026: $673 million
– Q1 FY 2025: $341 million
– **Change**: +97%
– **Free Cash Flow**:
– Q1 FY 2026: $620 million
– Q1 FY 2025: $300 million
– **Change**: +106.7%
– **GAAP Operating Profit**:
– Q1 FY 2026: $309 million
– Q1 FY 2025: $282 million
– **Change**: +9.6%
– **Non-GAAP Operating Profit**:
– Q1 FY 2026: $401 million
– Q1 FY 2025: $399 million
– **Change**: +0.5%
### Dividend and Share Repurchase
– NetApp returned a total of **$404 million** to stockholders through share repurchases and cash dividends during the quarter.
– The company declared a cash dividend of **$0.52 per share**, payable on October 22, 2025, for stockholders of record as of the close of business on October 3, 2025.
### Additional Insights and Highlights
– **Market Position**: Achieved the #1 market share position in all-flash storage as reported by IDC for calendar Q1 2025.
– **All-Flash Array Revenue Growth**: Increased by **6%** year-over-year to **$893 million** for an annualized net revenue run rate of **$3.6 billion**.
– **Public Cloud Services Revenue**: Grew significantly by **33%** year-over-year, indicating strong demand for cloud solutions.
– **Record Operational Metrics**:
– Leading cash flow from operations and free cash flow marked a record for Q1.
– Continuing year-over-year bilings growth for the seventh consecutive quarter indicates sustained operational strength.
### Future Outlook
– **Q2 FY 2026 Financial Guidance**: Expected net revenues between **$1.615 billion – $1.765 billion**.
– **Full FY 2026 Financial Guidance**: Net revenues anticipated between **$6.625 billion – $6.875 billion**.
– **Gross Margins Guidance**: Expected between **70% – 71%** for full fiscal year 2026, with operating margins expected between **22.8% – 23.8%**.
### Conclusion
NetApp’s Q1 FY 2026 results reflect solid growth particularly in operational cash flow and public cloud services, despite facing slight dips in net income and earnings per share compared to the previous year. The company’s guidance suggests continued growth potential, especially within the cloud storage sector.
Here are the extracted tables from the press release:
### NETAPP, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except per share amounts) (Unaudited)
| Three Months Ended | ||
|---|---|---|
| July 25, 2025 | July 26, 2024 | |
| Revenues: | ||
| Product | $654 | $669 |
| Services | $905 | $872 |
| Net revenues | $1,559 | $1,541 |
| Cost of revenues: | ||
| Cost of product | $302 | $269 |
| Cost of services | $159 | $174 |
| Total cost of revenues | $461 | $443 |
| Gross profit | $1,098 | $1,098 |
| Operating expenses: | ||
| Sales and marketing | $461 | $471 |
| Research and development | $242 | $252 |
| General and administrative | $84 | $75 |
| Restructuring charges | $2 | $17 |
| Acquisition-related expense | $— | $1 |
| Total operating expenses | $789 | $816 |
| Income from operations | $309 | $282 |
| Other (expense) income, net | $(5) | $17 |
| Income before income taxes | $304 | $299 |
| Provision for income taxes | $71 | $51 |
| Net income | $233 | $248 |
| Net income per share: | ||
| Basic | $1.16 | $1.20 |
| Diluted | $1.15 | $1.17 |
| Shares used in net income per share calculations: | ||
| Basic | 201 | 206 |
| Diluted | 203 | 212 |
### NETAPP, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In millions) (Unaudited)
| July 25, 2025 | April 25, 2025 | |
|---|---|---|
| ASSETS | ||
| Current assets: | ||
| Cash, cash equivalents and investments | $3,324 | $3,846 |
| Accounts receivable | $787 | $1,246 |
| Inventories | $133 | $186 |
| Other current assets | $443 | $573 |
| Total current assets | $4,687 | $5,851 |
| Property and equipment, net | $570 | $563 |
| Goodwill and purchased intangible assets, net | $2,771 | $2,766 |
| Other non-current assets | $1,651 | $1,643 |
| Total assets | $9,679 | $10,823 |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
| Current liabilities: | ||
| Accounts payable | $404 | $511 |
| Accrued expenses | $895 | $1,122 |
| Current portion of long-term debt | $— | $750 |
| Short-term deferred revenue and financed unearned services revenue | $2,270 | $2,279 |
| Total current liabilities | $3,569 | $4,662 |
| Long-term debt | $2,485 | $2,485 |
| Other long-term liabilities | $394 | $379 |
| Long-term deferred revenue and financed unearned services revenue | $2,256 | $2,257 |
| Total liabilities | $8,704 | $9,783 |
| Stockholders’ equity | $975 | $1,040 |
| Total liabilities and stockholders’ equity | $9,679 | $10,823 |
