NetApp reported fiscal Q3 2026 revenue of $1.71 billion, a 4% year‑over‑year increase that surpassed the consensus estimate of $1.70 billion. Non‑GAAP earnings per share were $2.12, beating the $2.07 estimate by $0.05 or 2.4%. The company’s operating margin reached a record 31.1%, up from 30.5% in the same quarter last year, reflecting disciplined cost management and a favorable mix shift toward higher‑margin products.
All‑flash array revenue topped $1.0 billion, up 11% from $0.90 billion in Q3 FY2025, driven by strong demand for high‑performance storage for AI workloads. Public‑cloud revenue rose 27% to $174 million, while hybrid‑cloud revenue increased 5% to $1.54 billion. These segment gains, combined with favorable foreign‑exchange effects, underpinned the overall revenue growth and margin expansion.
The record operating margin was largely a result of the mix shift toward all‑flash and public‑cloud solutions, which carry higher gross margins, and of effective cost controls that offset modest increases in operating expenses. NetApp’s pricing power in these high‑margin segments allowed the company to maintain profitability even as it invested in new AI‑ready infrastructure.
Management raised its full‑year revenue guidance to $6.772 billion–$6.922 billion, an increase of $0.5 billion from the prior outlook, and lifted non‑GAAP EPS guidance to $7.92–$8.02, reflecting confidence in continued demand for AI and cloud services and in the company’s ability to sustain margin expansion.
"Our strong Q3 results reflect the successful execution of our strategy to drive growth in key areas such as AI and cloud services. We remain committed to delivering value to our customers and shareholders through innovation and operational excellence," said CEO George Kurian. "Our results demonstrate strong execution on key revenue growth opportunities in All‑Flash, public cloud, and AI, along with a continued focus on operational discipline, resulting in record highs in both quarterly operating income and EPS."
NetApp returned $303 million to shareholders in Q3 FY2026 through $200 million in share repurchases and $103 million in dividends, underscoring the company’s commitment to delivering shareholder value while investing in growth initiatives.
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