NetApp: Fiscal 2Q26 Financial Results

Summary:

• NetApp hosted its annual customer conference, NetApp Insight, unveiling significant innovation for data, AI, cyber resilience, and cloud, strengthening its enterprise-grade data platform to fuel AI data factories
• All-flash array revenue grew 9% year-over-year to $1.0 billion in the second quarter, for an annualized net revenue run rate2 of $4.1 billion
• Public Cloud revenue of $171 million in the second quarter was driven by first-party and marketplace storage services, which grew 32% YoY
• Billings3 of $1.65 billion in the second quarter grew 4% YoY, the eighth consecutive quarter of YoY growth
• Record second quarter GAAP operating profit of $399 million; record non-GAAP operating profit3 of $530 million
• Record second quarter GAAP operating margin of 23.4%; record non-GAAP operating margin3 of 31.1%
• Returned $353 million to stockholders through share repurchases and cash dividends

NetApp Inc., an Intelligent Data Infrastructure company, reported financial results for the second quarter of fiscal year 2026, which ended on October 24, 2025.“Through strong execution and operational discipline, we delivered an outstanding second quarter with revenue growth driven by strong demand for our AI solutions, first-party and marketplace cloud storage 2 services, and all-flash offerings,” said George Kurian, CEO. “Our close alignment with customers’ key data initiatives has positioned us to capitalize on our significant competitive advantages. We remain confident that our visionary approach to a data-driven future will enable us to outpace market growth and capture additional market share.”

Second Quarter of Fiscal Year 2026 Financial Results
(In millions, except earnings per share and percentages)

Constant Currency – Q2 Fiscal Year 2026 versus Q2 Fiscal Year 2025

• In constant currency, YoY, net revenues increased by 2% and billings increased by 3%
• The YoY fluctuations of GAAP and non-GAAP net income presented in the tables above each include a favorable impact of approximately $14 million from foreign currency exchange rate changes
• The YoY fluctuations of GAAP and non-GAAP earnings per share presented in the tables above each include a favorable impact of approximately $0.07 from foreign currency exchange rate changes

Dividend
The next cash dividend of $0.52 per share is to be paid on January 21, 2026, to stockholders of record as of the close of business on January 2, 2026.

Second Quarter of Fiscal Year 2026 Business Highlights

Leading Product Innovation

• NetApp launched NetApp AFX, a unified, AI-ready enterprise data platform that decouples performance and capacity, enabling organizations to operationalize and scale Al workflows at enterprise-scale
• NetApp unveiled NetApp AI Data Engine, integrating Nvidia accelerated computing to simplify, secure, and accelerate AI workloads across hybrid and multicloud environments with integrated data discovery, curation, guardrails, and vectorization for GenAI
• NetApp introduced NetApp Keystone Storage-as-a-Service (STaaS) for Enterprise Al, a flexible, consumption-based Al infrastructure solution powered by NetApp AFX architecture
• NetApp launched enhanced Ransomware Resilience capabilities, adding AI-powered data breach detection and isolated recovery environments to help enterprises proactively identify potential threats, prevent data exfiltration, and securely restore critical workloads
• NetApp announced StorageGRID 12.0, a scalable, software-defined object storage solution that helps organizations manage growing volumes of unstructured data while enhancing AI initiatives, strengthening data security, and modernizing data infrastructure
• NetApp released Trident 25.10, the latest version of its open-source Kubernetes storage orchestrator, introducing enhanced parallelism, automated volume failover, AI/ML workload integration with NetApp AFX, and customizable compute resources to boost scalability, performance, and resilience
• NetApp announced an expanded version of the NetApp Shift Toolkit, adding support for Red Hat OpenShift Virtualization, Proxmox, and Oracle Linux VM, enabling bidirectional migration between VMware and Hyper-V, and giving customers increased flexibility
• NetApp Backup and Recovery added support for Microsoft SQL Server, delivering scalable, application-consistent protection and extending NetApp SnapCenter capabilities as a service
• NetApp announced updates to NetApp Cloud Volumes, including enhanced I/O performance, and robust security features like VNet encryption of data in transit

Customer and Partner Momentum

• NetApp and Google Cloud enhanced Google Cloud NetApp Volumes with block storage, Gemini Enterprise integration for AI applications, and FlexCache to unify on-premises and cloud data for seamless hybrid cloud access and simplified migration
• Google Cloud NetApp Volumes announced support for block capabilities with Flex service level, offering unified storage via NAS (NFS/SMB) and SAN (iSCSI)
• Amazon FSx for NetApp ONTAP announced support for Amazon Elastic VMware Service, enabling secure, efficient migration of VMware workloads to AWS with integrated data management, disaster recovery, and ransomware protection
• NetApp achieved AWS Competency Partner status, recognizing its proven technical expertise and customer success in delivering high-performance cloud storage and data management solutions on AWS
• Azure NetApp Files announced enhanced capabilities, including single file restore from backup, availability of short-term clones to reduce costs by avoiding full copy storage and minimizing operational overhead, and flexible service levels to allow customers to provision capacity pools by independently selecting storage capacity and throughput
• NetApp and Cisco announced a collaboration to integrate Cisco Nexus switches into NetApp AFX architecture, delivering AI-ready, enterprise-grade storage and networking for scalable, highperformance AI workloads
• NetApp and Red Hat expanded their collaboration to enhance hybrid cloud flexibility, accelerate VM migration with the NetApp Shift Toolkit, and strengthen virtualization through Trident integration, helping customers run containerized and VM workloads efficiently across environments
• NetApp, Equinix, Broadcom, and Kochasoft launched a managed service for SAP S/4HANA and legacy workloads on VMware Cloud Foundation, combining NetApp all-flash storage, Equinix secure infrastructure, and Broadcom private cloud technology to deliver resilient, high-performance, cost-efficient SAP environments
• Aston Martin Aramco Formula One Team announced that it runs entirely on NetApp storage, leveraging AI-ready infrastructure to accelerate simulations, optimize strategies, and enable rapid, data-driven decision making on the track

Corporate News and Events

• NetApp announced a multiyear partnership with the 49ers Foundation to deliver hands-on data science education to Bay Area high school students through the 49ers EDU Data Analytics Lesson Series, teaching practical skills in data storage, cloud, and cybersecurity
• NetApp released a global enterprise AI maturity study with IDC5, revealing that organizations investing in data readiness, protection, and scalable infrastructure realize the business impact from AI

Awards and Recognition  

• NetApp was recognized as a Leader in the 2025 Gartner Magic Quadrant for Enterprise Storage Platforms for its strong Completeness of Vision and Ability to Execute, reflecting its innovation in Intelligent Data Infrastructure, AI integration, and cyber resilience
• NetApp received a five-star rating in Newsweek’s America’s Greenest Companies 2025, recognized for measurable sustainability performance in emissions reduction, water management, and waste minimization
• NetApp won PQC Solution of the Year in the 2025 Cybersecurity Breakthrough Awards
• NetApp was awarded a Gold ranking by EcoVadis
• NetApp won Gold in the 2025 Merit Awards Technology Program, recognizing innovation and leadership in cloud services