NTAP US S&P 500Russell 1000 Earnings call

NetApp (NTAP) · Q2 2026 results and valuation

Share price: $183.12 · 2026-11-11

NetApp provides data management software and storage hardware for enterprises. The company offers solutions to manage, protect, and move data across on-premises, hybrid, and multi-cloud environments. Source: 10-K annual report (2026-06-05)

Results Q2 2026 vs Q1 2026 · previous quarter · fiscal Q1 2027 · published 2 Sep 2026 and 28 May 2026

Net income down 7.2% on the previous quarter. Management sounded very upbeat, though noticeably less so answering analysts.

1 · Numbers

−7.2%

Net income vs Q1 2026

Outlook given

Net income 375.0M vs 404.0M

Revenue +44.4%

Why Against the same quarter last year (+60.9%), net income rose primarily because robust growth in public cloud, all-flash, and Keystone revenues, alongside a disciplined approach to convert top-line growth into profitability despite higher component costs, contributed to a record gross profit of $1.43 billion.

2 · How management spoke

Very upbeat

More upbeat than 95% of company calls

Answers to analysts: very upbeat, but clearly less so than the script.

Last call it was different: script and answers matched.

3 · What stood out

NetApp's all-flash array revenue reached $1.31 billion in Q1, representing an increase of 47% year-over-year.

Valuation

Is NetApp undervalued?

Reverse DCF. Free cash flow from the last full fiscal year (2026-04-24), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.

At 0.0% growth a year (3-year revenue growth), the model's fair value is $114.30 a share — the stock trades 60% above it. Today's price assumes 6.8% growth a year.

Current price

$183.12

close of 2026-11-11

Market implies growth of i

+6.8% for 10 yrs

Fair value / share

$114.30

Buy below

$85.73

Price vs fair value

Overvalued 60%

Price vs buy-below price

Overvalued 114%

FCF growth / yr i Discount rate i Terminal growth i Margin of safety i

Official channels

The company's own website and social media accounts.

Read between the lines

Guidance

Q1 gross margin reached 70.6%, exceeding the high end of guidance and decreasing 50 basis points year-over-year due to a greater product revenue mix compared to a year ago.
Guidance

Earnings per share reached $2.58, exceeding the high end of the guidance range and rising 66% year-over-year to demonstrate the company's operating leverage.
Figure

Public cloud revenue grew to $206 million in Q1, up 28% year-over-year, due to adoption of first-party and marketplace storage services.

Source quote
“Driven by strong adoption of our first-party and marketplace storage services, Q1 public cloud revenue grew to $206 million, up 28% year-over-year and up 19% adjusting for the extra week.”
Figure

All-flash array revenue reached $1.31 billion in Q1, an increase of 47% year-over-year.

Source quote
“All-flash array revenue reached $1.31 billion in Q1, up 47% year-over-year.”
Guidance

The outlook for product margin for Q2 and the rest of the year has improved slightly compared to the guidance provided 90 days ago.

4 more

Key theme

All-flash grew 47% year-on-year, exceeding prior expectations for the overall year.

Source quote
“It was up 47% year-on-year. So when we look at the overall year, all-flash still blows out our prior expectations.”
Guidance

NTAP exceeded its guidance on every metric for fiscal year '27, leading the company to issue materially higher expectations for the year due to durable demand.
Guidance

NTAP is materially raising its outlook for the year due to a strong start and success across its business.
Guidance

NTAP raised its guidance for both the second quarter and the full year.

Tone

How upbeat the language was, compared with other companiesi. Dot: Q2 2026. Ring: Q1 2026.

Prepared remarks Very upbeat (was very upbeat)

Answers to analysts Very upbeat (was very upbeat)

Management sounded noticeably less positive answering analysts than in its prepared script — a bigger drop than in 85% of calls. Scripts are polished in advance; a drop under questioning often marks the topics analysts pressed on, so the answers deserve a closer read than the script.

Sentences that drove the tone

“Our broad-based success spanned industries and geographies with multiyear agreements, expansion into new workloads and deeper customer engagement, all strong leading indicators of durable growth.”

“Our disciplined approach converted robust top line growth into significant profitability even in a challenging component cost environment with gross profit growing 29% to a record $1.43 billion, operating margin...”

“By winning new business, deepening partnerships and investing in innovation, we are building a durable foundation for continued leadership and long-term growth.”

Full figures

USD · SEC EDGAR XBRL (10-Q, period end 2026-07-31)

Metric	Q2 2026period end 2026-07-31	Q1 2026period end 2026-04-24	Change	Q2 2025	YoY
Revenue	1.82B	1.26B	+44.4%	1.40B	+30.1%
Gross profit	1.42B	—		1.10B	+29.2%
Operating income	484.0M	532.0M	−9.0%	309.0M	+56.6%
Net income	375.0M	404.0M	−7.2%	233.0M	+60.9%
EPS	1.88	2.03	−7.4%	1.15	+63.5%
P/E today 23.9	25.2	17.1	+8.1	18.6	+6.6

Topics

Most discussed now

New While NetApp is seeing some accelerated purchase decisions and pricing benefits, it is also seeing a clear structural improvement in the...
NetApp's disciplined approach converted robust top line growth into significant profitability even in a challenging component cost…
Professional Services revenue of $112 million was up 15% year-over-year, mainly driven by continued robust growth in Keystone, NetApp's…
Hybrid Cloud revenue of $1.82 billion was up 30% year-over-year and 27% adjusting for the additional week.
NetApp saw clearly as commodity prices have gone up, it has adjusted its pricing, and you could see that in...

Faded since Q1 2026

Fading Enterprises are reimagining how they operate and compete and only NetApp delivers truly hybrid intelligent data infrastructure on-premises…
Fading When you look at the total gross margin for the company, the Public Cloud business has seen some really nice...
Fading NetApp thinks that it is very well positioned because of its installed base of data, its hybrid cloud data infrastructure...

Latest announcements

Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.

2026-09-11 Change to shareholder rights; Articles or bylaws amended; Shareholder vote results · SEC 8-K
On September 9, 2026, NetApp, Inc. stockholders approved an amended and restated certificate of incorporation providing for officer exculpation and adopted amended and restated bylaws to clarify governance procedures.
2026-09-02 Results of operations · SEC 8-K
2026-05-28 Results of operations; Other events · SEC 8-K
NetApp reported Q4 net revenues of $1.95 billion, up 12% year-over-year, and fiscal year 2026 net revenues of $6.93 billion, up 5% year-over-year.
2026-02-26 Results of operations · SEC 8-K
NetApp reported net revenues of $1.71 billion for the third quarter of fiscal year 2026, representing a 4% increase compared to the previous year.
2026-01-12 Director or officer change; Regulation FD disclosure · SEC 8-K
NetApp, Inc. increased the number of authorized directors from nine to ten and appointed Paul Fipps to the Board of Directors on January 8, 2026.
2025-11-25 Results of operations · SEC 8-K
NetApp reported net revenues of $1.71 billion for the second quarter of fiscal year 2026, representing a 3% increase compared to the previous year.
2025-09-15 Director or officer change; Shareholder vote results · SEC 8-K
Stockholders approved amendments to the Employee Stock Purchase Plan and the 2021 Equity Incentive Plan, increasing share reserves by 4,000,000 and 5,000,000 shares respectively, while also increasing various RSU awards for non-employee directors.
2025-08-27 Results of operations · SEC 8-K
NetApp reported net revenues of $1.56 billion for the first quarter of fiscal year 2026, representing a 1% increase compared to $1.541 billion in the same period last year.

Balance sheet & ownership

From SEC filings; short interest is FINRA data via Yahoo. Collected 2026-10-11.

Cash & runway

Cash & equivalents

$1.57B

2026-07-31

Short-term investments

$2.00B

total $3.58B

Implied runway

—

operating cash flow positive over the TTM window

Dilution

weighted-average basic shares, per quarter. Change: -2.5% YoY.

Quarter	Shares
Q4 2024	204.0M
Q1 2025	204.0M
Q3 2025	201.0M
Q4 2025	199.0M
Q1 2026	198.0M
Q3 2026	196.0M

Shares outstanding: 196.4M (2026-08-28)

Insider transactions

Form 4 open-market trades (codes S/P), trailing 12 months. Coverage: newest 50 of 72 filings; 50 filings parsed.

Sold by insiders

237.4K shares

$45.3M · 32 transactions

Bought by insiders

0 shares

0 transactions

Net direction

net selling

Catalyst calendar

management-stated targets — from the latest earnings call; plans, not promises.

In Q1

acquisition of DataPelago

Source quote
“In Q1, we acquired DataPelago, a recognized innovator in AI data infrastructure.”
At the start of Q2

acquisition of JetStream

Source quote
“At the start of Q2, we acquired JetStream, a leader in cloud native disaster recovery for VMware environments.”
in September

hosting of annual customer conference, NetApp Insight

Source quote
“We are excited to host our annual customer conference, NetApp Insight, in September.”
Q2

revenue

Source quote
“We expect revenue to be $2.1 billion, plus or minus $75 million.”
full year fiscal 2027

revenue

Source quote
“We now expect fiscal year 2027 revenue to be in the range of $7.975 billion to $8.225 billion.”