Latest news with #GeorgeKurian
Bloomberg
3 days ago
- Business
- Bloomberg
S&P 500 Whipsaws at End of Best May Since 1990
Bloomberg Television brings you the latest news and analysis leading up to the final minutes and seconds before and after the closing bell on Wall Street. Today's guests are Lara Castleton, Janus Henderson, Jennifer Lee, BMO Capital Markets, Jessica Reif Ehrlich, BofA Securities, George Kurian, NetApp CEO, Michael Halen, Bloomberg Intelligence, Gene Tannuzzo, Columbia Threadneedle, Eric Weiner, Bloomberg News, Hayden Brown, UpWork, Jared Weisfeld, RXO, Lauryn Bosstick, The Skinny Confidential, Shannon O'Neil, Council on Foreign Relations, Joe Mathieu, Bloomberg News, Josh Wingrove, Bloomberg News. (Source: Bloomberg)
Yahoo
4 days ago
- Business
- Yahoo
NetApp Reports Record Results for Fourth Quarter and Fiscal Year 2025
Fourth quarter net revenues of $1.73 billion, an increase of 4% year-over-year; Fiscal year 2025 net revenues of $6.57 billion, an increase of 5% year-over-year Record all-flash array annualized net revenue run rate1 of $4.1 billion, an increase of 14% year-over-year Record first-party and marketplace Public Cloud services revenue of $416 million in fiscal year 2025, an increase of 43% year-over-year Record billings2 of $6.78 billion for fiscal year 2025, an increase of 8% year-over-year Record GAAP gross profit of $1.19 billion for the fourth quarter; record non-GAAP gross profit2 of $1.20 billion Record GAAP gross profit of $4.61 billion for fiscal year 2025; record non-GAAP gross profit of $4.67 billion GAAP operating profit of $348 million for the fourth quarter; record non-GAAP operating profit2 of $496 million Record GAAP operating profit of $1.34 billion for fiscal year 2025; record non-GAAP operating profit of $1.86 billion Record GAAP operating margins of 20% for fiscal year 2025; record non-GAAP operating margins2 of 28% Returned $1.57 billion to stockholders through share repurchases and cash dividends in fiscal year 2025 SAN JOSE, Calif., May 29, 2025--(BUSINESS WIRE)--NetApp (NASDAQ: NTAP), the intelligent data infrastructure company, today reported financial results for the fourth quarter and fiscal year 2025, which ended on April 25, 2025. "Fiscal Year 2025 marked many revenue and profitability records, driven by significant market share gains in all-flash storage and accelerating growth in our first party and marketplace storage services. During the year, we refreshed our entire systems portfolio, sharpened the focus of our cloud services, and positioned ourselves to lead in the enterprise AI market," said George Kurian, Chief Executive Officer. "We are starting fiscal year 2026 following a year of market share gains, armed with the strongest portfolio in the company's history and a differentiated value proposition that addresses customers' top priorities. Looking ahead, I am confident our continued innovation and market expansion will drive sustainable long-term growth." Fourth Quarter of Fiscal Year 2025 Financial Results Net revenues: $1.73 billion, compared to $1.67 billion in the fourth quarter of fiscal year 2024; a year-over-year increase of 4%. Hybrid Cloud segment revenue: $1.57 billion, compared to $1.52 billion in the fourth quarter of fiscal year 2024. Public Cloud segment revenue: $164 million, compared to $152 million in the fourth quarter of fiscal year 2024. Billings: $2.03 billion, compared to $1.81 billion in the fourth quarter of fiscal year 2024; a year-over-year increase of 12%. All-flash array ARR: $4.1 billion, compared to $3.6 billion in the fourth quarter of fiscal year 2024; a year-over-year increase of 14%. Net income: GAAP net income of $340 million, compared to $291 million in the fourth quarter of fiscal year 2024; non-GAAP net income of $397 million, compared to $382 million in the fourth quarter of fiscal year 2024. Earnings per share: GAAP net income per share3 of $1.65, compared to $1.37 in the fourth quarter of fiscal year 2024; non-GAAP net income per share2 of $1.93, compared to $1.80 in the fourth quarter of fiscal year 2024. Cash, cash equivalents and investments: $3.85 billion at the end of the fourth quarter of fiscal year 2025. Cash provided by operations: $675 million, compared to $613 million in the fourth quarter of fiscal year 2024. Share repurchases and dividends: Returned $355 million to stockholders through share repurchases and cash dividends. Fiscal Year 2025 Financial Highlights Net revenues: $6.57 billion, compared to $6.27 billion in fiscal year 2024; a year-over-year increase of 5%. Hybrid Cloud segment revenue: $5.91 billion, compared to $5.66 billion in fiscal year 2024. Public Cloud segment revenue: $665 million, compared to $611 million in fiscal year 2024. Billings: $6.78 billion, compared to $6.25 billion in fiscal year 2024; a year-over-year increase of 8%. Net income: GAAP net income of $1.19 billion, compared to $986 million in fiscal year 2024; non-GAAP net income of $1.52 billion, compared to $1.38 billion in fiscal year 2024. Earnings per share: GAAP net income per share of $5.67 compared to $4.63 in fiscal year 2024; non-GAAP net income per share of $7.25 compared to $6.46 in fiscal year 2024. Cash provided by operations: $1.51 billion, compared to $1.69 billion in fiscal year 2024. Share repurchases and dividends: Returned $1.57 billion to stockholders through share repurchases and cash dividends. First Quarter of Fiscal Year 2026 Financial Outlook The Company provided the following financial guidance for the first quarter of fiscal year 2026: Net revenues are expected to be in the range of: $1.455 billion - $1.605 billion GAAP Non-GAAP Consolidated gross margins are expected to be in the range of: 70% - 71% 71% - 72% Operating margins are expected to be in the range of: 19% - 20% 25% - 26% Earnings per share is expected to be in the range of: $1.06 - $1.16 $1.48 - $1.58 Full Fiscal Year 2026 Financial Outlook The Company provided the following financial guidance for the full fiscal year 2026: Net revenues are expected to be in the range of: $6.625 billion - $6.875 billion GAAP Non-GAAP Consolidated gross margins are expected to be in the range of: 70% - 71% 71% - 72% Operating margins are expected to be in the range of: 22.8% - 23.8% 28.8% - 29.8% Earnings per share is expected to be in the range of: $5.80 - $6.10 $7.60 - $7.90 Dividend The next cash dividend of $0.52 per share is to be paid on July 23, 2025, to stockholders of record as of the close of business on July 3, 2025. Fourth Quarter of Fiscal Year 2025 Business Highlights Leading Product Innovation NetApp announced updates to its enterprise storage portfolio, expanding the ASA block-optimized family with systems targeted for remote or branch offices, giving customers even more options for simple, powerful, and affordable block storage. NetApp updated the NetApp EF portfolio with 30TB or 60TB QLC drives to provide the fast, affordable, high-performance, and high-capacity options required for demanding workloads such as media and entertainment, HPC and AI, and high-performance databases. NetApp introduced the NetApp FAS50 array, striking the right balance between price and performance optimization to enable businesses to store and manage secondary workloads efficiently. NetApp released new data security capabilities, including post-quantum cryptography, enhanced ransomware protection, expanded backup and recovery support, and professional security services, to help customers strengthen their cyber resilience at the storage layer. NetApp announced the NetApp™ cyber vaulting solution, powered by SnapLock™ compliance software, delivering confidentiality, integrity, and availability of data while maintaining storage infrastructure agility and efficiency. NetApp introduced NetApp Trident™ 25.02 software with powerful new capabilities – from Fibre Channel support to advanced data protection – to simplify storage deployment and management on Kubernetes for both on-premises and cloud environments. NetApp announced an enhancement to BlueXP™ workload factory for GenAI, enabling it to derive insights from images in PDF and Word documents, supporting multimodal data analysis for deeper, more accurate AI-powered insights. Customer and Partner Momentum The NFL named NetApp its Official Intelligent Data Infrastructure partner as the company works with the league to develop cutting-edge, silo-free storage technology that will allow it to manage its data to drive innovation. NVIDIA validated NetApp's high-performance enterprise storage with NetApp ONTAP™ for NVIDIA DGX SuperPOD, NVIDIA Cloud Partners, and NVIDIA-Certified Systems, powering AI training and inferencing workloads. NetApp and NVIDIA integrated the NVIDIA AI Data Platform with NetApp ONTAP to advance agentic AI, enabling businesses to power AI reasoning and inference through a unified, high-performance data pipeline optimized for hybrid cloud and unstructured data. NetApp announced the general availability of Domino Volumes for NetApp ONTAP, giving users the ability to unify, orchestrate, and govern AI and data across environments with Domino's enterprise AI platform backed by NetApp. Microsoft announced new capabilities for Azure NetApp Files, including a Flexible service level and enhanced scale and performance features, enabling organizations to control how they manage capacity and performance demands. NetApp announced NetApp Cloud Volumes ONTAP Freemium deployment through the Microsoft Azure Marketplace, saving time and streamlining the setup of Cloud Volumes ONTAP instances. NetApp and Google Cloud announced new enhancements to Google Cloud NetApp Volumes that boost scalability, performance, and AI integration, enabling enterprises to manage petabyte-scale workloads and seamlessly connect with tools like Vertex AI for advanced data-driven innovation. NetApp introduced Autonomous Ransomware Protection for Amazon FSx for NetApp ONTAP, bringing industry-leading ransomware detection capabilities to AWS Cloud with FSx for ONTAP, enhancing data security. United Kingdom (U.K.) distributor TD SYNNEX announced that it was appointed distributor for the NetApp Keystone™ storage-as-a-service solution in the U.K. and Ireland. Australian cloud hosting provider Servers Australia announced a strategic collaboration with NetApp to support secure, high-performance, and scalable IT infrastructure. Corporate News and Events NetApp further honed the focus of its Public Cloud segment with the completion of the sale of the Spot by NetApp business to Flexera. NetApp released new research identifying the trade-offs between U.K. business' sustainability goals and AI ambitions, revealing that technology companies are struggling to balance both due to data management challenges. Awards and Recognition NetApp received the 2025 Google Cloud Infrastructure Modernization Partner of the Year for Storage award for its achievements in the Google Cloud ecosystem, helping joint customers accelerate cloud workloads with intelligent data infrastructure and bring AI to their data with NetApp and Google Cloud. NetApp was named a Customers' Choice in the 2025 Gartner Peer Insights Voice of the Customer for Primary Storage Platforms, with 98% of verified users saying they would recommend the company for its intelligent, secure, and scalable data infrastructure. NetApp was recognized in CRN's AI 100 Awards as one of the "25 Hottest AI Companies for Data Center and Edge," with CEO George Kurian highlighting NetApp's success in AI-specific use cases and its ability to bridge the gap between AI systems and enterprise data. As part of CRN's 2025 Storage 100 Awards, NetApp was named as a vendor bringing software capabilities, services, and cloud connectivity to storage technology, highlighting the company's leadership in bringing on-premises storage to the cloud. NetApp was named one of the "Hottest Data Center Companies of 2025" as part of CRN's Data Center 50 List, described as the only enterprise-grade storage service embedded into the world's largest public clouds. NetApp was listed as one of the "Coolest Data Management and Integration Tool Companies" for CRN's 2025 Big Data 100 Awards, spotlighting NetApp's hardware and software storage offerings. GigaOm's Sonar report named NetApp a leader in the SaaS market, making it a standout company for partners and customers to consider. NetApp was recognized as a Champion in the first-ever Canalys Global Channel Leadership Matrix, underscoring its excellence in channel management and commitment to partner success. NetApp's Partner Sphere Partner Program was given five stars in CRN's "2025 Partner Program Guide," highlighting NetApp's new Partner Services benefit. Jenni Flinders, SVP of NetApp's Worldwide Partner Organization, was recognized as one of the 50 Most Influential Channel Leaders in CRN's 2025 Channel Chiefs Awards, highlighting her commitment to NetApp partners and use of NetApp's new Partner Hub portal. NetApp's Channel Lead for the U.K. and Ireland, Sonya Mathieu, was recognized in CRN's Channel Leaders EMEA List, highlighting her clear vision, execution, and influence on NetApp's channel programs. Board and Executive Leadership Announcements NetApp appointed Frank Pelzer, Chief Operating Officer of Spotnana, to its Board of Directors. Pelzer brings deep expertise in cloud, finance, and software to support NetApp's continued growth in intelligent data infrastructure. NetApp appointed Beth O'Callahan as Chief Administrative Officer, formalizing her prior role as Chief Legal Officer and Interim Chief Human Resources Officer. Her expanded role includes Human Resources, Workplace Experience, and Corporate Communications functions alongside Legal, Compliance, Government Relations, and Sustainability to drive greater alignment and execution across the business. Webcast and Conference Call Information NetApp will host a conference call to discuss these results today at 2:30 p.m. Pacific Time. To access the live webcast of this event, go to the NetApp Investor Relations website at In addition, this press release, historical supplemental data tables, and other information related to the call will be posted on the Investor Relations website. An audio replay will be available on the website after 4:30 p.m. Pacific Time today. "Safe Harbor" Statement Under U.S. Private Securities Litigation Reform Act of 1995 This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, all of the statements made in the First Quarter of Fiscal Year 2026 Financial Outlook section and the Full Fiscal Year 2026 Financial Outlook section, and statements about our business, economic and market outlook, financial guidance, our overall future prospects, our ability to compete for AI and other data-driven workloads against our competitors, our ability to deliver a modern approach to hybrid, multicloud infrastructure and data management, and our ability to deliver increasing results and value for our stakeholders. Actual results may differ materially from these statements for a variety of reasons, including, without limitation, our ability to keep pace with the rapid industry, technological and market trends and changes in the markets in which we operate; our ability to gain market acceptance for our products and services; our ability to maintain our customer, partner, supplier and contract manufacturer relationships on favorable terms and conditions; global political, macroeconomic and market conditions, including inflation, fluctuating interest rates, changing tariffs and trade policies and the related uncertainty thereof, regulations, monetary policy shifts, economic downturn and recession risks, and foreign exchange volatility and the resulting impact on demand for our products; the impact of new or ongoing geopolitical conflicts and sanctions; adoption or changes to laws, regulations standards or policies affecting our operations, products, services, the storage industry, or AI usage; material cybersecurity and other security breaches; the impact of supply chain disruptions on our business operations, financial performance and results of operations; changes and related uncertainty in U.S. government spending or policy; changes in overall technology spending by our customers; revenue seasonality; changes in laws or regulations, including those relating to privacy, data protection and information security; the timing of orders and their fulfilment; and our ability to manage our gross profit margins, including managing component costs. These and other equally important factors are described in reports and documents we file from time to time with the Securities and Exchange Commission, including the factors described under the sections titled "Risk Factors" in our most recently filed annual report on Form 10-K and quarterly report on Form 10-Q. We disclaim any obligation to update information contained in this press release whether as a result of new information, future events, or otherwise. NetApp, the NetApp logo, and the marks listed at are trademarks of NetApp, Inc. All other marks are the property of their respective owners. Footnotes 1All-flash array annualized net revenue run rate is determined by products and services revenue for the current quarter, multiplied by 4.2Refer to "NetApp Usage of Non-GAAP Financial Information" below for explanations of consolidated non-GAAP gross profit, non-GAAP operating profit, non-GAAP gross margins, non-GAAP operating margins, non-GAAP net income, non-GAAP net income per share, free cash flow, and billings.3GAAP net income per share and non-GAAP net income per share are calculated using the diluted number of shares. NetApp Usage of Non-GAAP Financial Information To supplement NetApp's condensed consolidated financial statement information presented in accordance with generally accepted accounting principles in the United States (GAAP), NetApp provides investors with certain non-GAAP measures, including, but not limited to, historical non-GAAP gross profit, non-GAAP operating profit, historical non-GAAP gross margins, non-GAAP operating margins, non-GAAP operating results, non-GAAP net income, non-GAAP effective tax rate, free cash flow, billings, and historical and projected non-GAAP earnings per diluted share. In prior periods, NetApp presented the hardware and software components of our GAAP product revenues to illustrate the significance and value of the Company's software. Because our revenue recognition policy under GAAP defines a configured storage system, inclusive of the operating system software essential to its functionality, as a single performance obligation, hardware and software components of our product revenues are considered non-GAAP measures. Effective in fiscal year 2025, NetApp no longer presents the non-GAAP hardware and software components of our product revenues, as management no longer considers them to be key financial measures. The Company's current strategy is expected to deliver investor value through growth in total revenues, including product revenues, while maintaining operational discipline to drive earnings leverage. While software continues to be the primary value driver of our products, NetApp is primarily focused on driving growth in total product revenues, through the sale of configured storage systems comprised of both hardware and software, with less focus on the pricing of each component. Additionally, the Company is considering potential opportunities to simplify pricing for certain products in the future, which may eliminate the existence of separate prices for hardware and software components and/or impact our ability to allocate between them. NetApp believes that the presentation of its non-GAAP measures, when shown in conjunction with the corresponding GAAP measures, provides useful information to investors and management regarding financial and business trends relating to its financial condition and results of operations. NetApp's management uses non-GAAP measures in making operating decisions because it believes that the measurements provide meaningful supplemental information regarding NetApp's ongoing operational performance. NetApp believes that the presentation of non-GAAP gross profit, non-GAAP operating profit, non-GAAP gross margins, non-GAAP operating margins, non-GAAP effective tax rate, non-GAAP net income, and non-GAAP earnings per share data, provides investors with supplemental metrics that assist in understanding current results and future prospects, earnings and profitability that are complementary to GAAP metrics. Each of these non-GAAP metrics is defined as the applicable GAAP metric adjusted to exclude the items defined in A through I below, as applicable, while our non-GAAP effective tax rate and non-GAAP net income also reflect a non-GAAP tax provision, as described in item J below, instead of our GAAP tax provision. Non-GAAP net income per share is computed as non-GAAP net income divided by the diluted number of shares for the applicable period. NetApp believes that the presentation of free cash flow, which it defines as the net cash provided by operating activities less cash used to acquire property and equipment, to be a liquidity measure that provides useful information to management and investors because it reflects cash that can be used to, among other things, invest in its business, make strategic acquisitions, repurchase common stock, and pay dividends on its common stock. As free cash flow is not a measure of liquidity calculated in accordance with GAAP, free cash flow should be considered in addition to, but not as a substitute for, the analysis provided in the statement of cash flows. NetApp approximates billings by adding net revenues as reported on our Condensed Consolidated Statements of Operations for the period to the change in total deferred revenue and financed unearned services revenue as reported on our Condensed Consolidated Statements of Cash Flows for the same period. Billings is a performance measure that NetApp believes provides useful information to management and investors because it approximates the amounts under purchase orders received by us during a given period that have been billed. Non-GAAP financial measures are used to: (1) measure company performance against historical results, (2) facilitate comparisons to our competitors' operating results and (3) allow greater transparency with respect to information used by management in financial and operational decision making. NetApp excludes the following items from its non-GAAP measures when applicable: A. Amortization of intangible assets. NetApp records amortization of intangible assets that were acquired in connection with its business combinations. The amortization of intangible assets varies depending on the level of acquisition activity. Management finds it useful to exclude these charges to assess the appropriate level of various operating expenses to assist in budgeting, planning and forecasting future periods and in measuring operational performance. B. Stock-based compensation expenses. NetApp excludes stock-based compensation expenses from its non-GAAP measures primarily because the amount can fluctuate based on variables unrelated to the performance of the underlying business. While management views stock-based compensation as a key element of our employee retention and long-term incentives, we do not view it as an expense to be used in evaluating operational performance in any given period. C. Litigation settlements. NetApp may periodically incur charges or benefits related to litigation settlements. NetApp excludes these charges and benefits, when significant, because it does not believe they are reflective of ongoing business and operating results. D. Acquisition-related expenses. NetApp excludes acquisition-related expenses, including (a) due diligence, legal and other one-time integration charges and (b) write down of assets acquired that NetApp does not intend to use in its ongoing business, from its non-GAAP measures, primarily because they are not related to our ongoing business or cost base and, therefore, are less useful for future planning and forecasting. E. Restructuring charges. These charges consist of restructuring charges that are incurred based on the particular facts and circumstances of restructuring decisions, including employment and contractual settlement terms, and other related charges, and can vary in size and frequency. We therefore exclude them in our assessment of operational performance. F. Asset impairments. These are non-cash charges to write down assets when there is an indication that the asset has become impaired. Management finds it useful to exclude these non-cash charges due to the unpredictability of these events in its assessment of operational performance. G. Gains/losses on the sale or derecognition of assets. These are gains/losses from the sale of our properties and other transactions in which we transfer and/or lose control of assets to a third party. This is inclusive of third-party advisory, legal and other costs that result directly from and are essential to a sale transaction and that would not have been incurred had the decision to sell not been made. Management believes that these transactions do not reflect the results of our underlying, ongoing business and, therefore, are less useful for future planning and forecasting. H. Gains/losses on the sale of investments in equity securities. These are gains/losses from the sale of our investment in certain equity securities. Typically, such investments are sold as a result of a change in control of the underlying businesses. Management believes that these transactions do not reflect the results of our underlying, ongoing business and, therefore, are less useful for future planning and forecasting. I. Debt extinguishment costs. NetApp excludes certain non-recurring expenses incurred as a result of the early extinguishment of debt. Management believes such non-recurring costs do not reflect the results of its underlying, ongoing business and, therefore, are less useful for future planning and forecasting. J. Income tax adjustments. NetApp's non-GAAP tax provision is based upon a projected annual non-GAAP effective tax rate for the first three quarters of the fiscal year and an actual non-GAAP tax provision for the fourth quarter of the fiscal year. The non-GAAP tax provision also excludes, when applicable, (a) tax charges or benefits in the current period that relate to one or more prior fiscal periods that are a result of events such as changes in tax legislation, authoritative guidance, income tax audit settlements, statute lapses and/or court decisions, (b) tax charges or benefits that are attributable to unusual or non-recurring book and/or tax accounting method changes, (c) tax charges or benefits that are a result of a non-routine foreign cash repatriation, (d) tax charges or benefits that are a result of infrequent restructuring of the Company's tax structure, (e) tax charges or benefits that are a result of a change in valuation allowance, and (f) tax charges or benefits resulting from the integration of intellectual property from acquisitions. Management believes that the use of non-GAAP tax provisions provides a more meaningful measure of the Company's operational performance. Non-GAAP measures are not in accordance with, or an alternative for, measures prepared in accordance with GAAP, and may be different from non-GAAP measures used by other companies. In addition, non-GAAP measures are not based on any comprehensive set of accounting rules or principles. NetApp believes that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with the Company's results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate the Company's results of operations in conjunction with the corresponding GAAP measures. NetApp management compensates for these limitations by analyzing current and projected results on a GAAP basis as well as a non-GAAP basis. The presentation of non-GAAP financial information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with generally accepted accounting principles in the United States. The non-GAAP financial measures are meant to supplement, and be viewed in conjunction with, GAAP financial measures. A detailed reconciliation of our non-GAAP to GAAP results can be found herein. Constant Currency In periods in which the impacts of foreign currency exchange rate changes are significant, NetApp presents certain constant currency growth rates or quantifies the impact of foreign currency exchange rate changes on year-over-year fluctuations, including for net revenues, billings, and earnings. This constant currency information assumes the same foreign currency exchange rates that were in effect for the comparable prior-year period were used in translation of the current period results. About NetApp NetApp is the intelligent data infrastructure company, combining unified data storage, integrated data, operational and workload services to turn a world of disruption into opportunity for every customer. NetApp creates silo-free infrastructure, harnessing observability and AI to enable the industry's best data management. As the only enterprise-grade storage service natively embedded in the world's biggest clouds, our data storage delivers seamless flexibility. In addition, our data services create a data advantage through superior cyber resilience, governance, and application agility. Our operational and workload services provide continuous optimization of performance and efficiency for infrastructure and workloads through observability and AI. No matter the data type, workload, or environment, with NetApp you can transform your data infrastructure to realize your business possibilities. Learn more at or follow us on X, LinkedIn, Facebook, and Instagram. NETAPP, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In millions) (Unaudited) April 25,2025 April 26,2024 ASSETS Current assets: Cash, cash equivalents and investments $ 3,846 $ 3,252 Accounts receivable 1,246 1,007 Inventories 186 186 Other current assets 573 452 Total current assets 5,851 4,897 Property and equipment, net 563 604 Goodwill and purchased intangible assets, net 2,766 2,883 Other non-current assets 1,643 1,503 Total assets $ 10,823 $ 9,887 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 511 $ 517 Accrued expenses 1,122 1,013 Current portion of long-term debt 750 400 Short-term deferred revenue and financed unearned services revenue 2,279 2,176 Total current liabilities 4,662 4,106 Long-term debt 2,485 1,992 Other long-term liabilities 379 585 Long-term deferred revenue and financed unearned services revenue 2,257 2,058 Total liabilities 9,783 8,741 Stockholders' equity 1,040 1,146 Total liabilities and stockholders' equity $ 10,823 $ 9,887 NETAPP, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except per share amounts) (Unaudited) Three Months Ended Year Ended April 25, 2025 April 26, 2024 April 25, 2025 April 26, 2024 Revenues: Product $ 845 $ 806 $ 3,040 $ 2,849 Services 887 862 3,532 3,419 Net revenues 1,732 1,668 6,572 6,268 Cost of revenues: Cost of product 378 314 1,284 1,137 Cost of services 161 178 675 698 Total cost of revenues 539 492 1,959 1,835 Gross profit 1,193 1,176 4,613 4,433 Operating expenses: Sales and marketing 458 460 1,865 1,828 Research and development 256 271 1,012 1,029 General and administrative 85 78 311 308 Restructuring charges 45 — 83 44 Acquisition-related expense 1 1 5 10 Total operating expenses 845 810 3,276 3,219 Income from operations 348 366 1,337 1,214 Other income, net 6 14 46 49 Income before income taxes 354 380 1,383 1,263 Provision for income taxes 14 89 197 277 Net income $ 340 $ 291 $ 1,186 $ 986 Net income per share: Basic $ 1.67 $ 1.41 $ 5.81 $ 4.74 Diluted $ 1.65 $ 1.37 $ 5.67 $ 4.63 Shares used in net income per share calculations: Basic 203 206 204 208 Diluted 206 212 209 213 NETAPP, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) (Unaudited) Three Months Ended Year Ended April 25, 2025 April 26, 2024 April 25, 2025 April 26, 2024 Cash flows from operating activities: Net income $ 340 $ 291 $ 1,186 $ 986 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 53 64 243 255 Non-cash operating lease cost 10 11 41 45 Stock-based compensation 95 88 386 357 Deferred income taxes 10 55 (100 ) 53 Other items, net 25 (17 ) - (13 ) Changes in assets and liabilities, net of acquisitions of businesses: Accounts receivable (323 ) (228 ) (219 ) (33 ) Inventories 81 (55 ) (1 ) (18 ) Accounts payable 69 120 (8 ) 123 Accrued expenses 156 129 62 113 Deferred revenue and financed unearned services revenue 300 146 208 (14 ) Long-term taxes payable (123 ) 1 (207 ) (106 ) Changes in other operating assets and liabilities, net (18 ) 8 (85 ) (63 ) Net cash provided by operating activities 675 613 1,506 1,685 Cash flows from investing activities: (Purchases) redemptions of investments, net (345 ) (251 ) 245 (580 ) Purchases of property and equipment (35 ) (46 ) (168 ) (155 ) Other investing activities, net 67 — 70 — Net cash (used in) provided by investing activities (313 ) (297 ) 147 (735 ) Cash flows from financing activities: Proceeds from issuance of common stock under employee stock award plans — — 108 100 Payments for taxes related to net share settlement of stock awards (31 ) (19 ) (199 ) (127 ) Repurchase of common stock (250 ) (100 ) (1,150 ) (900 ) Issuances of debt, net of issuance costs 1,240 — 1,240 — Repayments and extinguishment of debt — — (400 ) — Dividends paid (105 ) (104 ) (424 ) (416 ) Other financing activities, net (3 ) (1 ) (3 ) (1 ) Net cash provided by (used in) financing activities 851 (224 ) (828 ) (1,344 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash 18 (9 ) 15 (19 ) Net change in cash, cash equivalents and restricted cash 1,231 83 840 (413 ) Cash, cash equivalents and restricted cash: Beginning of period 1,518 1,826 1,909 2,322 End of period $ 2,749 $ 1,909 $ 2,749 $ 1,909 NETAPP, INC. SUPPLEMENTAL DATA (In millions except net income per share, percentages, DSO, DPO and Inventory Turns) (Unaudited) Revenues by Segment Q4'FY25 Q3'FY25 Q4'FY24 FY2025 FY2024 Product $ 845 $ 758 $ 806 $ 3,040 $ 2,849 Support 625 621 623 2,512 2,488 Professional and Other Services 98 88 87 355 320 Hybrid Cloud Segment Net Revenues 1,568 1,467 1,516 5,907 5,657 Public Cloud Segment Net Revenues 164 174 152 665 611 Net Revenues $ 1,732 $ 1,641 $ 1,668 $ 6,572 $ 6,268 Gross Profit by Segment Q4'FY25 Q3'FY25 Q4'FY24 FY2025 FY2024 Product $ 468 $ 430 $ 494 $ 1,762 $ 1,718 Support 577 573 574 2,315 2,293 Professional and Other Services 28 25 20 94 77 Hybrid Cloud Segment Gross Profit 1,073 1,028 1,088 4,171 4,088 Public Cloud Segment Gross Profit 130 133 104 500 408 Total Segments Gross Profit 1,203 1,161 1,192 4,671 4,496 Amortization of Intangible Assets (3 ) (8 ) (8 ) (28 ) (34 ) Stock-based Compensation (7 ) (8 ) (8 ) (30 ) (29 ) Unallocated Cost of Revenues (10 ) (16 ) (16 ) (58 ) (63 ) Gross Profit $ 1,193 $ 1,145 $ 1,176 $ 4,613 $ 4,433 Gross Margin by Segment Q4'FY25 Q3'FY25 Q4'FY24 FY2025 FY2024 Product 55.4 % 56.7 % 61.3 % 58.0 % 60.3 % Support 92.3 % 92.3 % 92.1 % 92.2 % 92.2 % Professional and Other Services 28.6 % 28.4 % 23.0 % 26.5 % 24.1 % Hybrid Cloud Segment Gross Margin 68.4 % 70.1 % 71.8 % 70.6 % 72.3 % Public Cloud Segment Gross Margin 79.3 % 76.4 % 68.4 % 75.2 % 66.8 % Geographic Mix % of Q4 FY'25 % of Q3 FY'25 % of Q4 FY'24 % of FY 2025 % of FY 2024 Revenue Revenue Revenue Revenue Revenue Americas 51 % 51 % 51 % 51 % 51 % Americas Commercial 42 % 41 % 41 % 40 % 40 % U.S. Public Sector 9 % 10 % 10 % 11 % 11 % EMEA 34 % 34 % 34 % 34 % 34 % Asia Pacific 15 % 15 % 15 % 15 % 15 % Pathways Mix % of Q4 FY'25 % of Q3 FY'25 % of Q4 FY'24 % of FY 2025 % of FY 2024 Revenue Revenue Revenue Revenue Revenue Direct 22 % 21 % 24 % 22 % 24 % Indirect 78 % 79 % 76 % 78 % 76 % Non-GAAP Income from Operations, Income before Income Taxes & Effective Tax Rate Q4'FY25 Q3'FY25 Q4'FY24 FY2025 FY2024 Non-GAAP Income from Operations $ 496 $ 492 $ 469 $ 1,862 $ 1,682 % of Net Revenues 28.6 % 30.0 % 28.1 % 28.3 % 26.8 % Non-GAAP Income before Income Taxes $ 492 $ 500 $ 483 $ 1,901 $ 1,726 Non-GAAP Effective Tax Rate 19.3 % 20.6 % 20.9 % 20.2 % 20.3 % Non-GAAP Net Income Q4'FY25 Q3'FY25 Q4'FY24 FY2025 FY2024 Non-GAAP Net Income $ 397 $ 397 $ 382 $ 1,516 $ 1,375 Non-GAAP Weighted Average Common Shares Outstanding, Diluted 206 208 212 209 213 Non-GAAP Net Income per Share, Diluted $ 1.93 $ 1.91 $ 1.80 $ 7.25 $ 6.46 Select Balance Sheet Items Q4'FY25 Q3'FY25 Q4'FY24 Deferred Revenue and Financed Unearned Services Revenue $ 4,536 $ 4,122 $ 4,234 DSO (days) 65 50 55 DPO (days) 86 80 96 Inventory Turns 12 7 11 Days sales outstanding (DSO) is defined as accounts receivable divided by net revenues, multiplied by the number of days in the quarter. Days payables outstanding (DPO) is defined as accounts payable divided by cost of revenues, multiplied by the number of days in the quarter. Inventory turns is defined as annualized cost of revenues divided by net inventories. Select Cash Flow Statement Items Q4'FY25 Q3'FY25 Q4'FY24 FY2025 FY2024 Net Cash Provided by Operating Activities $ 675 $ 385 $ 613 $ 1,506 $ 1,685 Purchases of Property and Equipment $ 35 $ 47 $ 46 $ 168 $ 155 Free Cash Flow $ 640 $ 338 $ 567 $ 1,338 $ 1,530 Free Cash Flow as % of Net Revenues 37.0 % 20.6 % 34.0 % 20.4 % 24.4 % Free cash flow is a non-GAAP measure and is defined as net cash provided by operating activities less purchases of property and equipment. Some items may not add or recalculate due to rounding. NETAPP, INC. RECONCILIATION OF GAAP TO NON-GAAP INCOME STATEMENT INFORMATION (In millions, except net income per share amounts) Q4'FY25 Q3'FY25 Q4'FY24 FY2025 FY2024 NET INCOME $ 340 $ 299 $ 291 $ 1,186 $ 986 Adjustments: Amortization of intangible assets 6 13 14 47 57 Stock-based compensation 95 103 88 386 357 Litigation settlements — — — — (5 ) Restructuring charges 45 9 — 83 44 Acquisition-related expense 1 2 1 5 10 Gains/losses on the sale or derecognition of assets 1 3 — 7 — Gain on sale of equity investment (10 ) — — (10 ) — Income tax effects (42 ) (32 ) (12 ) (149 ) (74 ) Resolution of income tax matters (39 ) — — (39 ) — NON-GAAP NET INCOME $ 397 $ 397 $ 382 $ 1,516 $ 1,375 COST OF REVENUES $ 539 $ 496 $ 492 $ 1,959 $ 1,835 Adjustments: Amortization of intangible assets (3 ) (8 ) (8 ) (28 ) (34 ) Stock-based compensation (7 ) (8 ) (8 ) (30 ) (29 ) NON-GAAP COST OF REVENUES $ 529 $ 480 $ 476 $ 1,901 $ 1,772 COST OF PRODUCT REVENUES $ 378 $ 330 $ 314 $ 1,284 $ 1,137 Adjustments: Stock-based compensation (1 ) (2 ) (2 ) (6 ) (6 ) NON-GAAP COST OF PRODUCT REVENUES $ 377 $ 328 $ 312 $ 1,278 $ 1,131 COST OF SERVICES REVENUES $ 161 $ 166 $ 178 $ 675 $ 698 Adjustments: Amortization of intangible assets (3 ) (8 ) (8 ) (28 ) (34 ) Stock-based compensation (6 ) (6 ) (6 ) (24 ) (23 ) NON-GAAP COST OF SERVICES REVENUES $ 152 $ 152 $ 164 $ 623 $ 641 GROSS PROFIT $ 1,193 $ 1,145 $ 1,176 $ 4,613 $ 4,433 Adjustments: Amortization of intangible assets 3 8 8 28 34 Stock-based compensation 7 8 8 30 29 NON-GAAP GROSS PROFIT $ 1,203 $ 1,161 $ 1,192 $ 4,671 $ 4,496 NETAPP, INC. RECONCILIATION OF GAAP TO NON-GAAP INCOME STATEMENT INFORMATION (In millions, except net income per share amounts) Q4'FY25 Q3'FY25 Q4'FY24 FY2025 FY2024 SALES AND MARKETING EXPENSES $ 458 $ 451 $ 460 $ 1,865 $ 1,828 Adjustments: Amortization of intangible assets (3 ) (5 ) (6 ) (19 ) (23 ) Stock-based compensation (40 ) (44 ) (34 ) (162 ) (143 ) NON-GAAP SALES AND MARKETING EXPENSES $ 415 $ 402 $ 420 $ 1,684 $ 1,662 RESEARCH AND DEVELOPMENT EXPENSES $ 256 $ 247 $ 271 $ 1,012 $ 1,029 Adjustments: Stock-based compensation (31 ) (36 ) (33 ) (135 ) (132 ) NON-GAAP RESEARCH AND DEVELOPMENT EXPENSES $ 225 $ 211 $ 238 $ 877 $ 897 GENERAL AND ADMINISTRATIVE EXPENSES $ 85 $ 74 $ 78 $ 311 $ 308 Adjustments: Stock-based compensation (17 ) (15 ) (13 ) (59 ) (53 ) Gains/losses on the sale or derecognition of assets (1 ) (3 ) — (4 ) — NON-GAAP GENERAL AND ADMINISTRATIVE EXPENSES $ 67 $ 56 $ 65 $ 248 $ 255 RESTRUCTURING CHARGES $ 45 $ 9 $ — $ 83 $ 44 Adjustments: Restructuring charges (45 ) (9 ) — (83 ) (44 ) NON-GAAP RESTRUCTURING CHARGES $ — $ — $ — $ — $ — ACQUISITION-RELATED EXPENSE $ 1 $ 2 $ 1 $ 5 $ 10 Adjustments: Acquisition-related expense (1 ) (2 ) (1 ) (5 ) (10 ) NON-GAAP ACQUISITION-RELATED EXPENSE $ — $ — $ — $ — $ — OPERATING EXPENSES $ 845 $ 783 $ 810 $ 3,276 $ 3,219 Adjustments: Amortization of intangible assets (3 ) (5 ) (6 ) (19 ) (23 ) Stock-based compensation (88 ) (95 ) (80 ) (356 ) (328 ) Restructuring charges (45 ) (9 ) — (83 ) (44 ) Acquisition-related expense (1 ) (2 ) (1 ) (5 ) (10 ) Gains/losses on the sale or derecognition of assets (1 ) (3 ) — (4 ) — NON-GAAP OPERATING EXPENSES $ 707 $ 669 $ 723 $ 2,809 $ 2,814 NETAPP, INC. RECONCILIATION OF GAAP TO NON-GAAP INCOME STATEMENT INFORMATION (In millions, except net income per share amounts) Q4'FY25 Q3'FY25 Q4'FY24 FY2025 FY2024 INCOME FROM OPERATIONS $ 348 $ 362 $ 366 $ 1,337 $ 1,214 Adjustments: Amortization of intangible assets 6 13 14 47 57 Stock-based compensation 95 103 88 386 357 Restructuring charges 45 9 — 83 44 Acquisition-related expense 1 2 1 5 10 Gains/losses on the sale or derecognition of assets 1 3 — 4 — NON-GAAP INCOME FROM OPERATIONS $ 496 $ 492 $ 469 $ 1,862 $ 1,682 OTHER INCOME, NET $ 6 $ 8 $ 14 $ 46 $ 49 Adjustments: Litigation settlements — — — — (5 ) Gains/losses on the sale or derecognition of assets — — — 3 — Gain on sale of equity investment (10 ) — — (10 ) — NON-GAAP OTHER INCOME (EXPENSE), NET $ (4 ) $ 8 $ 14 $ 39 $ 44 INCOME BEFORE INCOME TAXES $ 354 $ 370 $ 380 $ 1,383 $ 1,263 Adjustments: Amortization of intangible assets 6 13 14 47 57 Stock-based compensation 95 103 88 386 357 Litigation settlements — — — — (5 ) Restructuring charges 45 9 — 83 44 Acquisition-related expense 1 2 1 5 10 Gains/losses on the sale or derecognition of assets 1 3 — 7 — Gain on sale of equity investment (10 ) — — (10 ) — NON-GAAP INCOME BEFORE INCOME TAXES $ 492 $ 500 $ 483 $ 1,901 $ 1,726 PROVISION FOR INCOME TAXES $ 14 $ 71 $ 89 $ 197 $ 277 Adjustments: Income tax effects 42 32 12 149 74 Resolution of income tax matters 39 — — 39 — NON-GAAP PROVISION FOR INCOME TAXES $ 95 $ 103 $ 101 $ 385 $ 351 NET INCOME PER SHARE $ 1.65 $ 1.44 $ 1.37 $ 5.67 $ 4.63 Adjustments: Amortization of intangible assets 0.03 0.06 0.07 0.22 0.27 Stock-based compensation 0.46 0.50 0.42 1.85 1.68 Litigation settlements — — — — (0.02 ) Restructuring charges 0.22 0.04 — 0.40 0.21 Acquisition-related expense 0.01 0.01 — 0.03 0.05 Gains/losses on the sale or derecognition of assets — 0.01 — 0.03 — Gain on sale of equity investment (0.05 ) — — (0.05 ) — Income tax effects (0.20 ) (0.15 ) (0.06 ) (0.71 ) (0.35 ) Resolution of income tax matters (0.19 ) — — (0.19 ) — NON-GAAP NET INCOME PER SHARE $ 1.93 $ 1.91 $ 1.80 $ 7.25 $ 6.46 RECONCILIATION OF GAAP TO NON-GAAP GROSS MARGIN ($ in millions) Q4'FY25 Q3'FY25 Q4'FY24 FY2025 FY2024 Gross margin-GAAP 68.9 % 69.8 % 70.5 % 70.2 % 70.7 % Cost of revenues adjustments 0.6 % 0.9 % 1.0 % 0.9 % 1.0 % Gross margin-Non-GAAP 69.5 % 70.7 % 71.5 % 71.1 % 71.7 % GAAP cost of revenues $ 539 $ 496 $ 492 $ 1,959 $ 1,835 Cost of revenues adjustments: Amortization of intangible assets (3 ) (8 ) (8 ) (28 ) (34 ) Stock-based compensation (7 ) (8 ) (8 ) (30 ) (29 ) Non-GAAP cost of revenues $ 529 $ 480 $ 476 $ 1,901 $ 1,772 Net revenues $ 1,732 $ 1,641 $ 1,668 $ 6,572 $ 6,268 RECONCILIATION OF GAAP TO NON-GAAP PRODUCT GROSS MARGIN ($ in millions) Q4'FY25 Q3'FY25 Q4'FY24 FY2025 FY2024 Product gross margin-GAAP 55.3 % 56.5 % 61.0 % 57.8 % 60.1 % Cost of product revenues adjustments 0.1 % 0.2 % 0.3 % 0.2 % 0.3 % Product gross margin-Non-GAAP 55.4 % 56.7 % 61.3 % 58.0 % 60.3 % GAAP cost of product revenues $ 378 $ 330 $ 314 $ 1,284 $ 1,137 Cost of product revenues adjustments: Stock-based compensation (1 ) (2 ) (2 ) (6 ) (6 ) Non-GAAP cost of product revenues $ 377 $ 328 $ 312 $ 1,278 $ 1,131 Product revenues $ 845 $ 758 $ 806 $ 3,040 $ 2,849 RECONCILIATION OF GAAP TO NON-GAAP SERVICES GROSS MARGIN ($ in millions) Q4'FY25 Q3'FY25 Q4'FY24 FY2025 FY2024 Services gross margin-GAAP 81.8 % 81.2 % 79.4 % 80.9 % 79.6 % Cost of services revenues adjustments 1.1 % 1.6 % 1.6 % 1.5 % 1.7 % Services gross margin-Non-GAAP 82.9 % 82.8 % 81.0 % 82.4 % 81.3 % GAAP cost of services revenues $ 161 $ 166 $ 178 $ 675 $ 698 Cost of services revenues adjustments: Amortization of intangible assets (3 ) (8 ) (8 ) (28 ) (34 ) Stock-based compensation (6 ) (6 ) (6 ) (24 ) (23 ) Non-GAAP cost of services revenues $ 152 $ 152 $ 164 $ 623 $ 641 Services revenues $ 887 $ 883 $ 862 $ 3,532 $ 3,419 RECONCILIATION OF GAAP TO NON-GAAP OPERATING MARGIN ($ in millions) Q4'FY25 Q3'FY25 Q4'FY24 FY2025 FY2024 Operating margin-GAAP 20.1 % 22.1 % 21.9 % 20.3 % 19.4 % Adjustments: 8.5 % 7.9 % 6.2 % 8.0 % 7.5 % Operating margin-Non-GAAP 28.6 % 30.0 % 28.1 % 28.3 % 26.8 % GAAP income from operations $ 348 $ 362 $ 366 $ 1,337 $ 1,214 Income from operations adjustments: Amortization of intangible assets 6 13 14 47 57 Stock-based compensation 95 103 88 386 357 Restructuring charges 45 9 — 83 44 Acquisition-related expense 1 2 1 5 10 Gains/losses on the sale or derecognition of assets 1 3 — 4 — Non-GAAP income from operations $ 496 $ 492 $ 469 $ 1,862 $ 1,682 Net revenues $ 1,732 $ 1,641 $ 1,668 $ 6,572 $ 6,268 RECONCILIATION OF GAAP TO NON-GAAP EFFECTIVE TAX RATE Q4'FY25 Q3'FY25 Q4'FY24 FY2025 FY2024 GAAP effective tax rate 4.0 % 19.2 % 23.4 % 14.2 % 21.9 % Adjustments: Income tax effects 4.3 % 1.4 % (2.5 )% 3.2 % (1.6 )% Resolution of income tax matters 11.0 % — % — % 2.8 % — % Non-GAAP effective tax rate 19.3 % 20.6 % 20.9 % 20.2 % 20.3 % RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW (NON-GAAP) (In millions) Q4'FY25 Q3'FY25 Q4'FY24 FY2025 FY2024 Net cash provided by operating activities $ 675 $ 385 $ 613 $ 1,506 $ 1,685 Purchases of property and equipment (35 ) (47 ) (46 ) (168 ) (155 ) Free cash flow $ 640 $ 338 $ 567 $ 1,338 $ 1,530 RECONCILIATION OF NET REVENUES TO BILLINGS (NON-GAAP) (In millions) Q4'FY25 Q3'FY25 Q4'FY24 FY2025 FY2024 Net revenues $ 1,732 $ 1,641 $ 1,668 $ 6,572 $ 6,268 Change in deferred revenue and financed unearned services revenue* 300 72 146 208 (14 ) Billings $ 2,032 $ 1,713 $ 1,814 $ 6,780 $ 6,254 * As reported on our Condensed Consolidated Statements of Cash Flows NETAPP, INC. RECONCILIATION OF GAAP GUIDANCE TO NON-GAAP FIRST QUARTER FISCAL 2026 First Quarter Fiscal 2026 Gross Margin - GAAP Guidance 70% - 71% Adjustment: Cost of revenues adjustments 1% Gross Margin - Non-GAAP Guidance 71% - 72% First Quarter Fiscal 2026 Operating Margin - GAAP Guidance 19% - 20% Adjustments: Stock-based compensation expense 6% Operating Margin - Non-GAAP Guidance 25% - 26% Some items may not add or recalculate due to rounding. NETAPP, INC. RECONCILIATION OF GAAP GUIDANCE TO NON-GAAP EXPRESSED AS EARNINGS PER SHARE FIRST QUARTER FISCAL 2026 First Quarter Fiscal 2026 GAAP Guidance - Net Income Per Share $1.06 - $1.16 Adjustments of Specific Items to Net Income Per Share for the First Quarter Fiscal 2026: Amortization of intangible assets $0.03 Stock-based compensation expense $0.47 Income tax effects ($0.08) Total Adjustments $0.42 Non-GAAP Guidance - Net Income Per Share $1.48 - $1.58 Some items may not add or recalculate due to rounding. NETAPP, INC. RECONCILIATION OF GAAP GUIDANCE TO NON-GAAP Fiscal 2026 Fiscal 2026 Gross Margin - GAAP Guidance 70% - 71% Adjustment: Cost of revenues adjustments 1% Gross Margin - Non-GAAP Guidance 71% - 72% Fiscal 2026 Operating Margin - GAAP Guidance 22.8% - 23.8% Adjustments: Stock-based compensation expense 6% Operating Margin - Non-GAAP Guidance 28.8% - 29.8% Some items may not add or recalculate due to rounding. NETAPP, INC. RECONCILIATION OF GAAP GUIDANCE TO NON-GAAP EXPRESSED AS EARNINGS PER SHARE Fiscal 2026 Fiscal 2026 GAAP Guidance - Net Income Per Share $5.80 - $6.10 Adjustments of Specific Items to Net Income Per Share for Fiscal 2026: Amortization of intangible assets $0.10 Stock-based compensation expense $2.04 Income tax effects ($0.34) Total Adjustments $1.80 Non-GAAP Guidance - Net Income Per Share $7.60 - $7.90 Some items may not add or recalculate due to rounding. 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Yahoo
4 days ago
- Business
- Yahoo
NetApp's (NASDAQ:NTAP) Q1 Sales Beat Estimates But Full-Year Sales Guidance Slightly Misses Expectations
Data storage company NetApp (NASDAQ:NTAP) reported Q1 CY2025 results topping the market's revenue expectations , with sales up 3.8% year on year to $1.73 billion. On the other hand, next quarter's revenue guidance of $1.53 billion was less impressive, coming in 4.5% below analysts' estimates. Its non-GAAP profit of $1.93 per share was 1.8% above analysts' consensus estimates. Is now the time to buy NetApp? Find out in our full research report. Revenue: $1.73 billion vs analyst estimates of $1.72 billion (3.8% year-on-year growth, 0.7% beat) Adjusted EPS: $1.93 vs analyst estimates of $1.90 (1.8% beat) Adjusted EBITDA: $496 million vs analyst estimates of $542.5 million (28.6% margin, 8.6% miss) Revenue Guidance for Q2 CY2025 is $1.53 billion at the midpoint, below analyst estimates of $1.60 billion Adjusted EPS guidance for the upcoming financial year 2026 is $7.75 at the midpoint, beating analyst estimates by 0.6% Operating Margin: 20.1%, down from 21.9% in the same quarter last year Free Cash Flow Margin: 37%, up from 34% in the same quarter last year Market Capitalization: $20.27 billion 'Fiscal Year 2025 marked many revenue and profitability records, driven by significant market share gains in all-flash storage and accelerating growth in our first party and marketplace storage services. During the year, we refreshed our entire systems portfolio, sharpened the focus of our cloud services, and positioned ourselves to lead in the enterprise AI market,' said George Kurian, Chief Executive Officer. Founded in 1992 as a pioneer in networked storage technology, NetApp (NASDAQ:NTAP) provides data storage and management solutions that help organizations store, protect, and optimize their data across on-premises data centers and public clouds. Examining a company's long-term performance can provide clues about its quality. Any business can have short-term success, but a top-tier one grows for years. With $6.57 billion in revenue over the past 12 months, NetApp is one of the larger companies in the business services industry and benefits from a well-known brand that influences purchasing decisions. However, its scale is a double-edged sword because finding new avenues for growth becomes difficult when you already have a substantial market presence. To expand meaningfully, NetApp likely needs to tweak its prices, innovate with new offerings, or enter new markets. As you can see below, NetApp's 4% annualized revenue growth over the last five years was tepid. This shows it failed to generate demand in any major way and is a rough starting point for our analysis. We at StockStory place the most emphasis on long-term growth, but within business services, a half-decade historical view may miss recent innovations or disruptive industry trends. NetApp's recent performance shows its demand has slowed as its annualized revenue growth of 1.6% over the last two years was below its five-year trend. This quarter, NetApp reported modest year-on-year revenue growth of 3.8% but beat Wall Street's estimates by 0.7%. Company management is currently guiding for flat sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 4.1% over the next 12 months. Although this projection indicates its newer products and services will spur better top-line performance, it is still below the sector average. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. NetApp has been a well-oiled machine over the last five years. It demonstrated elite profitability for a business services business, boasting an average operating margin of 18.4%. Looking at the trend in its profitability, NetApp's operating margin rose by 2.4 percentage points over the last five years, as its sales growth gave it operating leverage. This quarter, NetApp generated an operating margin profit margin of 20.1%, down 1.9 percentage points year on year. This reduction is quite minuscule and indicates the company's overall cost structure has been relatively stable. We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. NetApp's EPS grew at a remarkable 12.2% compounded annual growth rate over the last five years, higher than its 4% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded. Diving into the nuances of NetApp's earnings can give us a better understanding of its performance. As we mentioned earlier, NetApp's operating margin declined this quarter but expanded by 2.4 percentage points over the last five years. Its share count also shrank by 7.2%, and these factors together are positive signs for shareholders because improving profitability and share buybacks turbocharge EPS growth relative to revenue growth. In Q1, NetApp reported EPS at $1.93, up from $1.80 in the same quarter last year. This print beat analysts' estimates by 1.8%. Over the next 12 months, Wall Street expects NetApp's full-year EPS of $7.27 to grow 5.8%. It was good to see NetApp narrowly top analysts' revenue expectations this quarter. We were also happy its EPS outperformed Wall Street's estimates. On the other hand, its EBITDA missed and revenue guidance for next quarter fell short. Overall, this was a weaker quarter. The stock traded down 5.1% to $94.25 immediately after reporting. The latest quarter from NetApp's wasn't that good. One earnings report doesn't define a company's quality, though, so let's explore whether the stock is a buy at the current price. We think that the latest quarter is just one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free.
Mint
7 days ago
- Business
- Mint
Banks, tech stocks pull Aussie shares higher ahead of inflation data
AXJO hits highest daily close since February 19 Australian CPI data awaited RBNZ expected to cut rates on Wednesday May 27 (Reuters) - Australian shares ended at more than three-month high on Tuesday, driven by gains in financials and technology stocks, while investors awaited the release of the April inflation data, which is expected to show further moderation. The S&P/ASX 200 index rose 0.5% to 8405.4, the highest daily close since February 19. The benchmark had ended flat on Monday. "I think we are in a quiet period for the market in the lead up to (the) end of (the) financial year... market is bouncing around on macroeconomic news, which... is looking positive for equities," said Luke Winchester, portfolio manager at Merewether Capital. Australia's financial year ends on June 30. Financials gained 1.1%, with the "Big Four" banks rising between 0.9% and 1.4%. The banks have gained since the RBA's rate reduction in May, buoyed by expectations of lending volume growth on lower rates. "However, the next big move in banks is almost certainly down as they have very limited room to rise further without earnings growth," said George Kurian, portfolio manager at Oracle Investment Management. Technology stocks added 1.2%, touching the highest since February 24 earlier in the session. The sub-index extended its gains from Monday, with WiseTech Global rising 2.5% to lead the rally a day after announcing its mega $2.1 billion takeover deal. Dragging the index lower, miners fell 0.3% on falling iron ore prices. Real estate stocks lost 0.4%. Investors are waiting for the Consumer Price Index (CPI) data on Wednesday to glean clues on the Reserve Bank of Australia's (RBA) next move, with analysts expecting the monthly rate to have eased to 2.3% in April from 2.4% a month ago. The market has priced in a 67% chance of an RBA rate cut in July. 0#AUDIRPR New Zealand's benchmark S&P/NZX 50 index closed 0.3% higher at 12,582.33 points, a day ahead of the local central bank's rate decision, where a 25-basis-point cut is expected, a Reuters poll showed. (Reporting by Rajasik Mukherjee in Bengaluru; Editing by Sumana Nandy)
Time of India
24-05-2025
- Business
- Time of India
Kurian visits Mizoram fish ponds, harps on local prodn of feed
1 2 3 4 Aizawl: Union minister of state for minority affairs and fisheries, animal husbandry & dairying George Kurian on Saturday highlighted equity grant under the Fish Farmers Producer Organisation (FFPO) to resolve the financial challenges faced by fish farmers and suggested local production to address the challenges related to fish feed acquisition that could be in the form of start-ups. Kurian arrived at Lengpui airport near Aizawl on Saturday and visited private fish ponds in Lengpui village as well as the proposed site for the Fish Farmers' Training Centre under the North Eastern Council (NEC) and Laldenga Fisheries Demonstration Farm at Lengpui. On this occasion, the state fisheries minister Lalthansanga and state department officials, who had received him at the airport and accompanied him in his visits conveyed the challenges faced by fish farmers in Mizoram, and sought Kurian's approval for project proposals submitted to the central govt for the development of fisheries, including one for the Integrated Aqua Park at Zawlnuam in Mamit district bordering Tripura and Assam. Kurian emphasised on the need to make fish farmers aware of govt schemes catered to them, and assured the officials that he would send officers to conduct outreach programmes. He stated that the central govt gives priority to the states in the northeast, and that Mizoram has potential for development in the fisheries sector. He was informed by the department officials that 26.5% of 24,000 hectares of land in the state is suitable for aquaculture.
