NetApp (NTAP) Morgan Stanley Technology, Media & Telecom Conference 2026 summary

Business performance and financial highlights

• Achieved strong Q3 results with 6% revenue growth excluding Spot divestiture and record operating income and EPS.

• All-Flash Arrays grew 11%, outpacing the market, and public cloud revenue rose 17% year-on-year.

• Keystone storage as a service business expanded by approximately 65-68% year-on-year.

• U.S. public sector showed recovery after prior disruptions, with expectations for continued improvement.

• Maintains disciplined capital allocation, returning nearly 100% of free cash flow to shareholders and focusing on tuck-in M&A.

AI strategy and market momentum

• Secured nearly 300 AI wins in Q3, with 40% of deals for production workloads, indicating accelerating enterprise adoption.

• AI workloads span data preparation, model training, and inference, with 60% focused on data lakes.

• Differentiates through cost performance, advanced data management tools, hybrid/multi-cloud integration, and a large unstructured data footprint.

• AI-driven storage demand expected to accelerate, with the company aiming to gain market share.

• Geographic AI adoption led by the U.S., with Europe and Asia following.

Product innovation and customer solutions

• Introduced the AFX family for high-performance storage and the AI Data Engine for data organization and governance.

• Keystone's OpEx model has proven sticky, with customers extending usage beyond initial terms and contributing to margin accretion over time.

• Hybrid flash products and flexible cloud offerings provide competitive advantage in price-sensitive and capacity-driven use cases.

• Focused expansion in key markets like Germany, France, U.K., India, Middle East, Korea, and Japan, leveraging partnerships for local scale.