NetApp (NTAP) Q1 2027 earnings summary

Executive summary

• Achieved record Q1/FY27 results with revenue up 30% year-over-year to $2.03 billion, driven by strong AI, cloud, and hybrid multicloud demand, and supported by strategic acquisitions like DataPelago and JetStream.

• EPS (Non-GAAP) rose 66% year-over-year to $2.58; GAAP net income increased 61% to $375 million.

• Broad-based growth across industries, geographies, and customer segments, with notable wins in utilities, public sector, and cloud service providers.

• Raised full-year FY27 guidance for revenue, EPS, and margins, reflecting strong demand and durable business momentum.

• Recognized for industry leadership in enterprise storage and AI, with expanded partnerships and product innovations.

Financial highlights

• Q1 revenue: $2.03 billion, up 30% year-over-year; non-GAAP EPS: $2.58, up 66%; GAAP EPS: $1.88, up 63%.

• Gross profit: $1.43 billion, up 29% year-over-year; gross margin: 70.6% (down 50 bps year-over-year).

• Operating income: $645 million (non-GAAP), up 61% year-over-year; operating margin: 31.9%.

• Free cash flow: $401 million; cash flow from operations: $503 million; cash and investments: $3.6 billion.

• Returned $302 million to shareholders via buybacks and dividends; diluted share count decreased by 1.5% year-over-year.

Outlook and guidance

• Q2 FY27 revenue expected at $2.025–$2.175 billion; gross margin: 67%–68%; operating margin: 30.9%–31.9%; EPS: $2.54–$2.64.

• FY27 revenue guidance raised to $7.975–$8.225 billion (midpoint: $8.1 billion, 17% growth); EPS: $9.73–$10.03 (midpoint: $9.88, 22% growth); gross margin: 68.1%–69.1%; operating margin: 30.3%–31.3%.

• Management expects continued inflationary pressures and supply chain constraints, with pricing adjustments planned to offset rising costs.

• Liquidity and capital resources deemed sufficient for at least the next 12 months and beyond.