NetApp (NTAP) Q1 2027 Financial Results Summary
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NetApp (NTAP) Q1 2027: Record Revenues and Earnings Growth — Strongly Positive
NetApp (NASDAQ: NTAP) reported a remarkable first quarter for fiscal year 2027, achieving record quarterly net revenues of $2.03 billion, an increase of 30% year-over-year from $1.56 billion in Q1 FY26. This performance not only exceeded expectations but also marked a significant milestone for the company, showcasing its robust growth trajectory.
Key Financial Metrics:
- Net Revenues: $2.03 billion (up $466 million or +30% YoY)
- GAAP Earnings Per Share (EPS): $1.88 (up $0.73 or +63% YoY)
- Non-GAAP EPS: $2.58 (up $1.03 or +66% YoY)
- Net Income: $375 million (up $142 million or +61% YoY)
- Billings: $2.06 billion (up $546 million or +36% YoY)
- Gross Profit: $1.42 billion (up $321 million or +29% YoY)
- Operating Margin: 23.9% (GAAP), 31.9% (Non-GAAP)
Analyst View:
This quarter is undoubtedly a strong positive for shareholders. The substantial revenue growth, coupled with impressive earnings increases, reflects NetApp's successful strategy in capitalizing on the growing demand for AI and hybrid cloud solutions. The company's ability to exceed guidance on every metric indicates strong operational execution and market demand for its products.
NetApp's record all-flash array net revenue of $1.3 billion, a 47% increase year-over-year, and public cloud net revenue of $206 million, a 28% increase, further underscore its competitive positioning in high-growth segments. The company’s strategic acquisition of DataPelago, Inc. will likely enhance its capabilities in AI data infrastructure, positioning it well for future growth.
Dividend and Guidance Changes:
NetApp announced a cash dividend of $0.52 per share, scheduled for payment on October 28, 2026, to stockholders of record as of October 9, 2026. Additionally, the company significantly raised its fiscal year 2027 revenue and earnings guidance:
- Full Fiscal Year 2027 Revenue Guidance: $7.975 billion - $8.225 billion
- Full Fiscal Year 2027 Non-GAAP EPS Guidance: $9.73 - $10.03
For the second quarter of fiscal year 2027, NetApp expects:
- Net Revenues: $2.025 billion - $2.175 billion
- Non-GAAP EPS: $2.54 - $2.64
Forward Catalyst:
Investors should closely monitor NetApp's continued execution in the AI and hybrid cloud markets, particularly how the integration of DataPelago enhances its offerings. Additionally, the upcoming second quarter results will be critical to assess whether the company can maintain its growth momentum and meet the elevated guidance provided. The market's response to the dividend announcement and any further strategic partnerships will also be key indicators of shareholder sentiment moving forward.
In summary, NetApp's Q1 FY27 results reflect a strong start to the fiscal year, with significant growth across all key metrics, positioning the company favorably for the future.
Here are the extracted tables from the press release:
NETAPP, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS ($ in millions, except net income per share amounts) (Unaudited)
Note: Amounts are in millions.
| Three Months Ended | July 31, 2026 | July 25, 2025 | |
|---|---|---|---|
| Revenues: | Product | $987 | $654 |
| Services | $1,038 | $905 | |
| Net revenues | $2,025 | $1,559 | |
| Cost of revenues: | Cost of product | $450 | $302 |
| Cost of services | $156 | $159 | |
| Total cost of revenues | $606 | $461 | |
| Gross profit | $1,419 | $1,098 | |
| Operating expenses: | Sales and marketing | $507 | $461 |
| Research and development | $274 | $242 | |
| General and administrative | $98 | $84 | |
| Restructuring charges | $56 | $2 | |
| Total operating expenses | $935 | $789 | |
| Income from operations | $484 | $309 | |
| Other expense, net | — | ($5) | |
| Income before income taxes | $484 | $304 | |
| Provision for income taxes | $109 | $71 | |
| Net income | $375 | $233 | |
| Net income per share: | Basic | $1.91 | $1.16 |
| Diluted | $1.88 | $1.15 | |
| Shares used in net income per share calculations: | Basic | 196 | 201 |
| Diluted | 200 | 203 |
NETAPP, INC. CONDENSED CONSOLIDATED BALANCE SHEETS ($ in millions) (Unaudited)
Note: Amounts are in millions.
| July 31, 2026 | April 24, 2026 | |||
|---|---|---|---|---|
| ASSETS | Current assets: | Cash, cash equivalents and investments | $3,576 | $3,584 |
| Accounts receivable | $966 | $1,286 | ||
| Inventories | $375 | $198 | ||
| Other current assets | $755 | $708 | ||
| Total current assets | $5,672 | $5,776 | ||
| Property and equipment, net | $663 | $592 | ||
| Goodwill and purchased intangible assets, net | $2,954 | $2,794 | ||
| Other non-current assets | $1,666 | $1,582 | ||
| Total assets | $10,955 | $10,744 | ||
| LIABILITIES AND STOCKHOLDERS' EQUITY | Current liabilities: | Accounts payable | $566 | $550 |
| Accrued expenses | $1,200 | $1,151 | ||
| Current portion of long-term debt | $550 | — | ||
| Short-term deferred revenue | $2,252 | $2,320 | ||
| Total current liabilities | $4,568 | $4,021 | ||
| Long-term debt | $1,938 | $2,487 | ||
| Other long-term liabilities | $360 | $360 | ||
| Long-term deferred revenue | $2,594 | $2,525 | ||
| Total liabilities | $9,460 | $9,393 | ||
| Stockholders' equity | $1,495 | $1,351 | ||
| Total liabilities and stockholders' equity | $10,955 | $10,744 |
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