NetApp (NTAP) Q3 2026 earnings summary

Executive summary

• Q3 FY26 revenue reached $1.71 billion, up 4% year-over-year (4.4% in some reports), with record non-GAAP EPS of $2.12, up 11% year-over-year, and GAAP EPS of $1.67.

• All-flash array revenue hit a record $1.0 billion, up 11% year-over-year, with strong AI and cloud storage momentum and 300+ AI-related customer wins.

• Keystone storage-as-a-service revenue surged 65% year-over-year; Public Cloud Services revenue (excluding Spot) rose 17%.

• Major technology deployments included Super Bowl LX and launches of AFX and AI Data Engine, with strong early customer adoption.

• $303 million returned to shareholders in Q3 via share repurchases and dividends.

Financial highlights

• Non-GAAP gross margin was 71.2%, up 50 bps year-over-year; GAAP gross margin was 70.6%.

• Non-GAAP operating margin reached 31.1%, up 1.1 pts year-over-year; GAAP operating margin was 25.3%.

• Cash flow from operations was $317 million; free cash flow was $271 million, with a margin of 15.8%.

• Net cash position stood at $522 million at quarter end; cash and short-term investments totaled $3.0 billion; gross debt at $2.5 billion.

• Billings grew 10% year-over-year to $1.89 billion.

Outlook and guidance

• Q4 FY26 revenue expected at $1.87 billion ±$75 million ($1.795B–$1.945B), implying 8% year-over-year growth (9% excluding Spot).

• Q4 gross margin guidance: 69.5%–70.5%; operating margin: 30.5%–31.5%; non-GAAP EPS: $2.21–$2.31.

• FY26 revenue guidance: $6.772–$6.922 billion (midpoint 4% growth, 5% excluding Spot).

• FY26 gross margin: 70.7%–71.7%; operating margin: 29.3%–30.3%; non-GAAP EPS: $7.92–$8.02.

• Next dividend of $0.52 per share payable April 22, 2026.