EarningsQ1 2027 Earnings Report
MX:NTAP Q1 2027 EPS Results
Actual EPS$46.86
Consensus EPS$38.56
Beat/MissBeat by +$8.30
One Year Ago EPS$28.15
MX:NTAP Q1 2027 Revenue Results
Actual Revenue$36.79B
Expected Revenue$33.36B
Beat/MissBeat by +$3.43B
YoY Revenue Growth+30.12%
Earnings Announcement Details
QuarterQ1 2027
Date09/02/2026
TimeAfter Close
Conference CallWednesday, September 2, 2026
MX:NTAP Upcoming Earnings
NetApp's next earnings date is estimated for December 1, 2026, based on past reporting schedules.
Q1 2027 Earnings Call Audio
MX:NTAP Q1 2027 Earnings Call
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Q1 2027 Earnings Slide Deck
Q1 2027 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive. NetApp reported record Q1 results, broad-based demand, substantial AI and cloud momentum, strong cash generation, and materially raised fiscal-year revenue, margin, and EPS guidance. The principal challenges were higher component costs, product-mix-related gross margin pressure, lower sequential inventory turns, and some timing variability from accelerated or deferred customer purchases, but management said product-margin expectations had improved slightly versus prior guidance and expressed strong confidence in the business.Company Guidance
Record Q1 Financial Performance
NetApp delivered a record-setting first quarter, exceeding Q1 guidance on every metric. Revenue increased 30% year-over-year to $2.03 billion, gross profit grew 29% to a record $1.43 billion, operating margin reached 31.9%, and non-GAAP EPS increased 66% year-over-year to $2.58.
Broad-Based Demand Momentum
Management reported strength across customer sizes, geographies, industries, workloads, on-premises, Keystone, and cloud. Results reflected a healthier demand environment as customers invested in AI and modernization, along with some accelerated purchases and pricing benefits.
Raised Fiscal 2027 Outlook
Fiscal 2027 revenue guidance was raised to $7.975 billion to $8.225 billion, with an $8.1 billion midpoint representing 17% year-over-year growth and an increase of $650 million versus prior guidance. Operating margin guidance was raised to 30.3% to 31.3%, and EPS guidance was raised to $9.73 to $10.03, with a $9.88 midpoint representing 22% year-over-year growth.
Strong Q2 Guidance
Q2 revenue is expected to be $2.1 billion, plus or minus $75 million, implying 23% year-over-year growth at the midpoint. EPS guidance is $2.54 to $2.64, with a $2.59 midpoint.
All-Flash Array Growth
All-flash array revenue reached $1.31 billion in Q1, up 47% year-over-year. Management said customers are standardizing on NetApp for mission-critical workloads, including GPU-intensive AI pipelines, and that innovation and go-to-market execution are driving share gains.
Public Cloud Revenue Growth
Q1 public cloud revenue grew 28% year-over-year to $206 million, or 19% excluding the additional week. Growth was driven by adoption of first-party and marketplace storage services, and public cloud gross margin was 86.4%, up 70 basis points sequentially and more than 6 percentage points year-over-year.
Hybrid Cloud and Product Revenue Expansion
Hybrid Cloud revenue was $1.82 billion, up 30% year-over-year and 27% excluding the additional week. Product revenue was $987 million, up 51% year-over-year, while management also reported accelerating interest in hybrid-flash solutions.
AI and Data Lake Deal Momentum
NetApp won approximately 350 AI and data lake modernization deals in Q1. Management said deal sizes are increasing as customers move from proof of concept to production-level workloads, with prior wins expanding into production environments.
AI Platform and Customer Wins
NetApp signed a significant agreement with Samsung Electronics, won a strategic public-sector modernization deal leveraging AFX with NVIDIA SuperPOD, and secured a significant win with an Asian neo-cloud provider for secure, scalable storage supporting AI services and inference workloads.
New Customer Acquisition and Competitive Displacements
Management reported that new customer counts, new customer dollars, and expansion within existing customers were all ahead of internal forecasts. Examples included a major U.S. utility standardizing on NetApp's unified AI-ready data infrastructure, a European IT service provider selecting NetApp for critical infrastructure, and NetApp displacing a competitor at a leading transportation agency.
Cloud Migration Opportunities
NetApp reported customer wins involving Amazon FSx for NetApp ONTAP and Azure NetApp Files for VMware migration and data modernization. Management said these solutions delivered superior performance, lower cost, versatile workload support, technical advantages, and substantial cost savings in the cited customer deployments.
DataPelago Acquisition
NetApp acquired DataPelago, whose Nucleus software engine enables high-performance in-place data processing, eliminates data movement, and streamlines AI readiness. Management said the acquisition expands the platform's AI data infrastructure capabilities and helps customers unlock additional value from unstructured data already managed on NetApp.
JetStream Acquisition
At the start of Q2, NetApp acquired JetStream, a provider of cloud-native disaster recovery for VMware environments. JetStream enables continuous protection and recovery across diverse storage environments with replication to NetApp cloud offerings such as Azure NetApp Files.
Recurring Revenue and Contract Visibility
NetApp exited Q1 with $4.85 billion in deferred revenue, up 7% year-over-year, and remaining performance obligations of $5.65 billion, up 14% year-over-year.
Operating Leverage and Cash Generation
Operating income increased 61% year-over-year to $645 million, while operating margin expanded 6.1 percentage points year-over-year to 31.9%. Cash flow from operations was $503 million and free cash flow was $401 million.
Shareholder Returns and Reduced Share Count
NetApp returned $302 million to shareholders in Q1, including $200 million in share repurchases and $102 million in dividends, or $0.52 per share. Diluted share count decreased by 3 million shares, or 1.5% year-over-year.
Healthy Balance Sheet
NetApp ended the quarter with $3.6 billion in cash and short-term investments and $2.5 billion in gross debt, resulting in a net cash position of $1.1 billion.
Keystone Growth
Professional Services revenue was $112 million, up 15% year-over-year, mainly driven by continued robust growth in Keystone. Management said Keystone grew roughly in the same ballpark as prior quarters and as the overall flash business, and that the business was seeing more new customers and additional capabilities.
Continued Investment in AI Solutions
Management said it is continuing to invest in AI solutions while maintaining discipline in operating expenses. The expected full-year operating expense increase remains much less than half of projected revenue growth.
AFX Progress
AFX is being positioned for high-end performance and scale environments, particularly AI GPU-as-a-service deployments, neo-clouds, and private AI clouds. Management said AFX is being certified across a large number of customers and is making good progress.
MX:NTAP Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed