New Delhi, India – August 28, 2025 – NetApp, Inc., a leading provider of data management and cloud solutions, announced its financial results for the first quarter of fiscal 2026. The company’s Form 10-Q report highlights steady revenue growth alongside ongoing investments in cloud innovation and AI infrastructure.
NetApp generated $1.56 billion in net revenues for the quarter ending July 2025. This amount reflects a 1% year-over-year increase. The rise was driven mainly by higher services revenue, although product sales in some areas declined during the period.
Despite the revenue gain, NetApp’s net income dropped to $233 million, compared to $248 million a year earlier. The company attributed the decline primarily to a higher effective tax rate. Basic earnings per share were $1.16, and diluted earnings per share stood at $1.15, slightly below last year’s levels.
Operating income increased to $309 million, which equals 20% of total net revenues. This figure improved from 18% in the previous fiscal year. The gross margin held steady at 70.4%, consistent with prior performance.
NetApp organizes its operations into two main segments: Hybrid Cloud and Public Cloud. The hybrid cloud segment comprises software, hardware, and support services. Public cloud focuses on cloud storage and data services provided as-a-service.
Hybrid cloud product revenues declined, reflecting weaker sales of hybrid systems. However, strong demand for all-flash array systems partially offset these losses. Meanwhile, the Public Cloud segment remained stable, indicating progress in the company’s cloud-first transformation.
Geographically, the Americas led with $791 million in net revenues, an increase compared to last year. The EMEA region contributed $503 million, while Asia-Pacific revenues held steady at $265 million. This distribution confirms NetApp’s balanced global footprint and the Americas as its largest market.
Looking ahead, NetApp plans to allocate $125 million to $175 million in capital expenditures for fiscal 2026. These investments will support data center modernization, cybersecurity enhancements, and the creation of scalable data pipelines to support AI workloads.
The company is also monitoring regulatory changes such as the One Big Beautiful Bill Act (OBBB) and Pillar Two tax regulations. These developments could affect NetApp’s operations and tax strategies.
During this quarter, NetApp repurchased 3 million shares of its common stock and declared a cash dividend of $0.52 per share. These actions demonstrate the company’s commitment to providing shareholder value.
Furthermore, NetApp repaid its 1.875% Senior Notes due June 2025. While this repayment impacted cash flow, it improved the company’s overall liquidity and financial position.
NetApp’s Q1 results reflect a company navigating steady financial performance alongside a strategic shift toward cloud services and AI technology. Although net income slipped slightly, the rise in operating margins signals improved operational efficiency.
The company’s continued investment in future-ready technologies signals confidence in long-term growth prospects. By modernizing its offerings and expanding cloud capabilities, NetApp aims to maintain its leadership in the evolving data landscape.
As the technology sector evolves, NetApp remains focused on innovation. Its cloud-first strategy and AI infrastructure investments position the company well for future market demands.
Overall, NetApp demonstrates resilience and strategic foresight. Its diversified segments, strong global presence, and shareholder-friendly policies support sustainable value creation.
NetApp’s clear focus on cloud and AI growth will help it capitalize on new opportunities and meet customer demands in a data-driven future.
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