NetApp (NTAP) NTAP Q2 Financial Results Summary

2025-11-26 · Stocks · QuoteReporter

NetApp (NTAP) Q2 2026 Financial Results Summary

NetApp (NASDAQ: NTAP) announced its financial results for the second quarter of fiscal year 2026 on November 25, 2025. The quarter ended on October 24, 2025.

Financial Highlights for Q2 FY2026

• Net Revenues:

• $1.71 billion, a 3% increase year-over-year from $1.66 billion.

• GAAP Net Income:

• $305 million, up 2% from $299 million in Q2 FY2025.

• GAAP Earnings per Share (EPS):

• $1.51, a 6% increase compared to $1.42 in the same quarter of the previous year.

• Non-GAAP Net Income:

• $415 million, reflecting a 6% rise from $392 million a year ago.

• Non-GAAP Earnings per Share:

• $2.05, up 10% from $1.87 in Q2 FY2025.

• Hybrid Cloud Segment Revenue:

• $1.53 billion, a 3% increase from $1.49 billion last year.

• Public Cloud Segment Revenue:

• $171 million, a 2% improvement over $168 million year-over-year.

• All-Flash Array Revenue:

• $1 billion, up 9%, with an annualized net revenue run rate of $4.1 billion.

• Gross Profit:

• $1.23 billion, increasing 4% from $1.18 billion year-over-year.

• Billings:

• $1.65 billion, marking a 4% growth compared to $1.59 billion in the same period a year prior.

• GAAP Operating Profit:

• A record of $399 million, up from $345 million a year ago.

• Non-GAAP Operating Profit:

• $530 million, rising from $475 million year-over-year.

• Cash Provided by Operations:

• $127 million, a significant 21% increase compared to $105 million in Q2 FY2025.

• Operating Margins:

• GAAP: 23.4%, up from 20.8% a year ago.
• Non-GAAP: 31.1%, improving from 28.6%.

Shareholder Returns

• Total Returned to Stockholders:

• $353 million via share repurchases and cash dividends.

• Quarterly Dividend:

• A dividend of $0.52 per share has been declared, set to be paid on January 21, 2026, to stockholders of record by January 2, 2026.

Business Highlights

• Innovations Launched:
• Introduced the NetApp AFX platform, targeting AI workflows.
• Unveiled the NetApp AI Data Engine, integrating NVIDIA technology to advance AI capabilities.
• Announced the NetApp Keystone Storage-as-a-Service for enterprises.

• Enhanced Ransomware Resilience capabilities including AI-powered detection.

• Strategic Collaborations:

• Strengthened partnerships with Google Cloud, AWS, and Microsoft, facilitating advanced storage solutions and capabilities.

Future Outlook

• Third Quarter FY2026 Expectations:
• Forecasted net revenues between $1.615 billion and $1.765 billion.
• Expected GAAP operating margins between 24.5% and 25.5%, with Non-GAAP operating margins projected from 30.5% to 31.5%.

• Anticipated earnings per share in the range of $1.52 to $1.62 on a GAAP basis, and $2.01 to $2.11 on a Non-GAAP basis.

• Full Fiscal Year 2026 Guidance:

• Expected net revenues of $6.625 billion to $6.875 billion.
• GAAP operating margins forecasted between 23.5% and 24.5%, with Non-GAAP operating margins between 29.5% and 30.5%.

Closing Remarks

NetApp has positioned itself strongly in the market by capitalizing on the growing demand for AI and cloud-based solutions. The company’s ongoing innovations and strategic partnerships are expected to enhance its operational performance in future quarters.

For more information, NetApp hosts a conference call discussing these results and future expectations available on their Investor Relations website at investors.netapp.com.