NetApp Reports Strong Q1 Fiscal Year 2027 Earnings with Revenue Growth Across Key Segments
NetApp (NTAP) reported strong financial results for the first quarter of fiscal year 2027, driven by robust demand across its all-flash and hybrid storage solutions as well as public cloud services. The company recorded revenue of $2.03 billion, a 30% increase from the prior year, with non-GAAP earnings per share rising to $2.58 — up 66%. Product revenue surged 51%, while support and public cloud revenues also showed solid growth. Management raised full-year guidance for both revenue and EPS due to sustained demand in enterprise AI initiatives and multicloud modernization. Billings reached $2.06 billion, reflecting a year-over-year increase of 36%. The company's operating margin improved significantly to 31.9%, up from the prior year by over six percentage points. NetApp also reported strong free cash flow generation at $401 million and returned value to shareholders through share repurchases and dividends totaling $302 million. Despite these gains, management noted challenges in component costs — particularly for silicon — which impacted product gross margins slightly. However, the company remains optimistic about its long-term growth trajectory due to continued adoption of AI-driven data lake modernization projects.
Tickers: $NTAP
Topics: billings flash_arrays non-gaap_eps operating_margin product_revenue public_cloud_revenue revenue support_revenue