NetApp (NTAP) Q1 2026 earnings summary

Executive summary

• Achieved Q1 FY26 revenue of $1.56 billion, up 1% year-over-year, exceeding guidance midpoint, with strong Americas enterprise and all-flash performance offsetting declines in U.S. public sector and EMEA.

• Maintained #1 market share in all-flash storage for calendar Q1 2025, with all-flash array revenue up 6% year-over-year to $893 million and a 45% all-flash penetration in the installed base.

• Robust demand for all-flash, cloud storage, and AI solutions drove growth, with over 125 AI infrastructure and data lake modernization deals closed in Q1.

• Public cloud storage services revenue grew 33% year-over-year, with rapid adoption and customer wins.

• Record Q1 cash flow from operations of $673 million and free cash flow of $620 million, highlighting robust liquidity.

Financial highlights

• Q1 total revenue was $1.56 billion, up 1% year-over-year; billings reached $1.51 billion, up 4.3% year-over-year.

• Q1 consolidated gross margin improved to 71.1%; public cloud gross margin reached 80.1%, up 9 points year-over-year.

• Q1 operating profit was $401 million, operating margin 25.7%, and diluted/non-GAAP EPS $1.55.

• Net income was $233 million, with GAAP EPS of $1.15.

• Cash, cash equivalents, and short-term investments totaled $3.3 billion at quarter-end.

Outlook and guidance

• Q2 FY26 revenue expected at $1.69 billion ±$75 million, implying 2% year-over-year growth (3% excluding Spot); gross margin 71% ±0.5%, operating margin 28–29%, and diluted/non-GAAP EPS $1.84–$1.94.

• FY26 revenue guidance reiterated at $6.625–$6.875 billion (3% growth at midpoint, 4% excluding Spot); EPS $7.60–$7.90.

• Next dividend of $0.52 per share payable October 22, 2025.