NetApp (NTAP) Company Report

NetApp CFO Wissam Jabre emphasized priorities of revenue growth, profitability expansion, and returning 100% of free cash flow via dividends and buybacks.
Q2 product gross margin reached 59.5%, driven by cost improvements and NAND pricing locks, and is expected to remain stable through FY26.
Public Cloud segment ex-Spot grew 18% YoY, with first-party and marketplace storage up 32%, targeting 80–85% gross margin.
NetApp reported ~200 enterprise AI wins across data prep (45%), training (25%), and inferencing (35%), positioning AI inferencing as a future data-infrastructure growth driver.
FY26 revenue is guided to grow around 3% at the midpoint, with accelerating all-flash adoption and anticipated recovery in U.S. public sector and EMEA.

Dec 11, 2025, 12:15 AM

Transcript

NetApp discusses fiscal 2026 outlook at Barclays Global Technology Conference

NTAP

Guidance Update

In his first year, CFO emphasized revenue growth, profitability expansion, improving free cash flow, and plans to return 100% of free cash flow via dividends and buybacks
Q2 product gross margin of 59.5%, driven by locked‐in NAND pricing; expects stable product margins in FY26 and will pass commodity costs to customers
Public cloud segment ex-Spot grew 18% in Q2, with first-party and marketplace storage up 32%; achieved 83% segment gross margin and will fully lap Spot by Q1 FY27
Hybrid Cloud all-flash arrays represent ~66% of segment revenue; 46% of installed base refreshed to all-flash, with refresh rate set to increase ~1 pp per quarter
Secured ~200 AI-related wins in Q2: 45% data prep, 25% training, 35% inferencing; inferencing seen as key driver for future data infrastructure demand

Dec 11, 2025, 12:15 AM

Transcript

NetApp CFO outlines strategy and growth outlook at Barclays Tech Conference

NTAP

CFO priorities center on driving top-line growth and expanding profitability while enhancing free cash flow; the company returns 100% of free cash flow to shareholders via dividends and buybacks.
Q2 product gross margin improved to 59.5%, supported by locked-in NAND pricing and pass-through adjustments, contributing to an overall gross margin of 72.6% in the quarter.
The public cloud segment (ex-Spot) grew 18% with an 83% gross margin; within that, first-party and marketplace storage expanded 32%, and the Keystone consumption model grew ~80% in H1, targeting 80–85% segment margins.
NetApp reported ~200 AI-related enterprise wins in Q2—45% data prep, 25% training, 35% inferencing—highlighting a growing opportunity to modernize data infrastructure for AI workloads.

Dec 11, 2025, 12:15 AM

Transcript

NetApp highlights AI storage opportunity and stable margins

NTAP

Product Launch

Demand Weakening

Revenue Acceleration/Inflection

Core enterprise demand is “tepid”—revenues excluding U.S. public sector grew mid-single digits, while total revenue growth was 2–3% due to federal spending cuts.
DRAM accounts for low-single-digit percentages of bill of materials; with $2 billion in annual COGS, NetApp manages margin by bulk, opportunistic purchasing and raised list prices to sustain 59.5% gross margin, expected to hold in FY 2026.
AI momentum builds with 200 design wins in the quarter (versus 100 a year ago), driven largely by data lake consolidation ahead of inference workloads.
Launched the disaggregated AFF platform in October 2025 to target AI inference use cases; customer traction will become clearer over fiscal 2026.
Public cloud storage (Keystone) run rate at $6.7 billion, with first-party marketplace revenue (≈75% of cloud revenues) up ~30% year-over-year.

Dec 9, 2025, 4:20 PM

Transcript

NetApp outlines demand trends and AI-focused product launch at Raymond James TMT conference

NTAP

Product Launch

Demand Weakening

NetApp reported mid-single digit revenue growth ex-U.S. public sector, but overall revenues rose only 2–3%, held back by federal cuts (U.S. public sector 10–14% of sales).
U.S. public sector declines stem from cuts at federal agencies (≈75% of that segment), split roughly into military, intelligence, and civilian (each ~1/3).
Memory components represent a small portion of cost (DRAM low single digits of BOM); total COGS is about $2 billion, with SSDs rising and procurement managed opportunistically.
AI storage strategy is gaining traction: 200 AI design wins in the quarter (vs. 100 a year ago) and launch of the disaggregated AFF platform in October to target inference workloads.
The public-cloud business (Keystone) has a $6.7 billion run rate, with first-party marketplace revenues up ~30% year-over-year, and is attracting many new customers.

Dec 9, 2025, 4:20 PM

Transcript

NetApp outlines demand trends and AI strategy at Raymond James TMT Conference

NTAP

Demand Weakening

Product Launch

Core enterprise demand remains tepid, with mid-single-digit growth ex-U.S. public sector and public sector down year-on-year due to federal cuts representing 10–14% of revenues.
NetApp manages memory cost inflation via volume-based, opportunistic purchasing, raising list prices and adjusting discounts to sustain ~59.5% gross margin, with FY26 guidance implying margins hold.
AI momentum: reported 200 AI design wins (vs 100 a year ago) and targets inference-driven storage growth; introduced AFF disaggregated AI storage platform in October.
Public cloud business run rate at $6.7 billion, with ~30% YoY first-party marketplace revenue growth and thousands of customers, half of which are new to NetApp.
Global footprint: ~50% revenues in Americas, ~33% in EMEA (Germany #1 market share), mid-teens in APAC.

Dec 9, 2025, 4:20 PM

Transcript

NetApp presents Q2 highlights and AI strategy at Morgan Stanley US IT hardware conference

NTAP

Guidance Update

NetApp delivered 4% year-on-year Q2 revenue growth, led by 32% growth in cloud storage and 9% growth in all-flash storage, achieving record gross and operating margins.
The company doubled its AI project wins to ~200 in the quarter, covering data lake organization (45%), model training/fine-tuning (25%), and inferencing (30%), leveraging its hybrid multi-cloud architecture.
Hybrid cloud revenue mix comprises two-thirds all-flash systems and 46% of the install base, with all-flash mix rising roughly 1% per quarter, while disk remains stable for high-capacity workloads.
Management reaffirmed a long-term target of mid-to-high single-digit revenue growth, cloud margins of 80–85%, and plans to return ~100% of free cash flow to shareholders through dividends and buybacks.

Dec 9, 2025, 1:30 PM

Transcript

NetApp outlines Q2 results and AI-driven storage strategy

NTAP

Guidance Update

Demand Weakening

Q2 results beat expectations with strong product gross margins driven by higher-performance flash mix; EMEA market share widened while U.S. federal public-sector demand remained soft, expected to normalize in spring (FY Q2 2026).
Cloud storage grew 18% ex-Spot, anchored by first-party offerings up 32% YoY with gross margins near 83%, and expanding multi-protocol support across hyperscalers.
NetApp reported 200 AI wins, with storage projects split into 45% data prep, 25% training, and 30% inferencing, reflecting rising demand for AI-ready infrastructure.
Margin expansion is supported by a high-margin services base (support at 92%, Keystone at 80%), structured NAND pricing agreements, and continued focus on cyber-resilient storage and unstructured data leadership.

Dec 2, 2025, 10:35 PM

Transcript

NetApp outlines AI-driven growth and sector dynamics at UBS Tech Conference

NTAP

NetApp reported strong execution in Europe despite macro headwinds, while U.S. public sector demand softened, with spending expected to normalize in spring 2026.
The all-flash business continues to outpace legacy systems, and hybrid cloud revenue grew, driven by product mix, with support margins at 92%.
Public cloud solutions saw 18% ex-Spot growth, and first-party cloud storage expanded 32% year-on-year at 83% gross margin, supported by multi-protocol integrations across hyperscalers.
AI infrastructure is emerging as a key storage driver: NetApp secured 200 AI wins, with deployments allocated 45% to data prep, 25% to training/fine-tuning, and 30% to inferencing workloads.
Gross margin leverage is maintained through structured NAND/DRAM pricing agreements and a shift toward higher-performance flash systems.

Dec 2, 2025, 10:35 PM

Transcript

NetApp highlights strong margins and AI momentum

NTAP

Demand Weakening

Revenue Acceleration/Inflection

New Projects/Investments

NetApp delivered 83% cloud gross margin and 32% YoY growth in first-party cloud storage, with all-flash product mix boosting overall margins.
EMEA storage demand outperformed expectations, driving market share gains, while U.S. public sector remains weak as federal spending delays push projects into spring.
The company has secured 200 AI infrastructure wins, with revenue split 45% data prep, 25% training, and 30% inferencing, signaling rising on-premises AI build-outs.
Disciplined margin management via structured NAND pricing agreements and stable memory procurement ensure continued access to innovation amid commodity price fluctuations.

Dec 2, 2025, 10:35 PM

Transcript

Earnings Transcripts

Quarterly earnings call transcripts for NetApp.

Q2 2026

Nov 25, 2025

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Q1 2026

Aug 27, 2025

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Q4 2025

May 29, 2025

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NetApp (NTAP)

Analyst Earnings Quarterly Reports

Q3 2025

Q2 2025

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Executives

George Kurian

Beth O'Callahan

Cesar Cernuda

Syam Nair

Wissam Jabre

Board Members

Anders Gustafsson

Carrie Palin

Deborah Kerr

Deepak Ahuja

Frank Pelzer

Gerald Held

June Yang

T. Michael Nevens

Analyst Coverage

Ananda Baruah

David Vogt

Simon Leopold

Wamsi Mohan

Steven Fox

Tim Long

Jason Ader

Krish Sankar

Louis Miscioscia

Mehdi Hosseini

Samik Chatterjee

Ari Terjanian

Asiya Merchant

Paramveer Singh

Aaron Rakers

Amit Daryanani

Erik Woodring

Meta Marshall

Nehal Chokshi

Michael Cadiz

Param Singh

Samit Chatterjee

Sreekrishnan Sankarnarayanan

Elizabeth Elliott

Hannah

Jake Wilhelm

Joseph Cardoso

Ruplu Bhattacharya

Timothy Long

Victor Chiu

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