NetApp (NTAP) Q4 2025 earnings summary

Executive summary

• Achieved record revenue, gross profit, operating profit, operating margin, and EPS for both Q4 and fiscal year 2025, driven by strong growth in all-flash storage and public cloud services.

• All-flash and public cloud now represent over two-thirds of total revenue, up from less than half five years ago.

• Significant market share gains in all-flash and block storage, with nearly 300 basis points of all-flash share gained in 2024.

• AI business grew fivefold year-over-year in Q4, with 150 AI infrastructure and data lake modernization deals closed.

• Entered FY26 with a strong, innovative portfolio, prudent R&D and sales investments, and confidence in continued record performance.

Financial highlights

• FY25 revenue: $6.57B, up 5% year-over-year; Q4 revenue: $1.73B, up 4% year-over-year; FY25 billings: $6.78B, up 8% year-over-year.

• All-flash revenue hit $4.1B, up 14% year-over-year; public cloud revenue $416M, up 43% year-over-year.

• FY25 operating margin: 28.3%, up 150 bps year-over-year; Q4 operating margin: 28.6%; FY25 EPS: $7.25, up 12% year-over-year.

• FY25 free cash flow: $1.34B; Q4 free cash flow: $640M; cash and short-term investments: $3.85B at year-end.

• Deferred revenue at FY25 end: $4.54B, up 7% year-over-year; remaining performance obligations: $4.97B.

Outlook and guidance

• FY26 revenue guidance: $6.625B–$6.875B (midpoint $6.75B, +3% YoY; +4% YoY excluding Spot divestiture); gross margin: 71–72%; operating margin: 28.8–29.8%; EPS: $7.60–$7.90.

• Q1 FY26 revenue: $1.455B–$1.605B (midpoint $1.53B, -1% YoY; +1% YoY ex-Spot); gross margin: 71–72%; operating margin: 25–26%; EPS: $1.48–$1.58.

• Plan to return up to 100% of free cash flow to shareholders via dividends and buybacks in FY26.

• Next dividend: $0.52 per share, payable July 23, 2025.