Ari Terjanian's questions to NetApp (NTAP) leadership • Q1 2026
Question
Ari Terjanian of Cleveland Research Company asked for an update on the all-flash competitive landscape, noting a peer's strong results, and inquired about the customer take-rates of pricing actions taken last year.
Answer
CEO George Kurian acknowledged the competitive environment but stated NetApp saw no adverse competitive patterns during the quarter. He clarified that recent product gross margin pressure was due to year-over-year component cost increases, not new pricing actions, as they are in a 'wait and see' mode regarding tariffs. He expressed confidence that cost comparisons will become more benign through the year, helping margins recover.