NetApp reported a record Q4 and FY26, with revenue exceeding guidance, driven by strength in all-flash, public cloud, AI, and Keystone. Management guided to FY27 revenue growth acceleration and provided Q1 guidance. The company is navigating memory cost inflation but sees robust demand driven by enterprise AI adoption, particularly through a major expanded partnership with Google Cloud. Record Q4 revenue of $1.95B (+12% YoY) and FY26 revenue of $6.93B (+5% YoY), with operating margin hitting a record 32%.
NetApp reported a record Q4 and FY26, with revenue exceeding guidance, driven by strength in all-flash, public cloud, AI, and Keystone. Management guided to FY27 revenue growth acceleration and provided Q1 guidance. The company is navigating memory cost inflation but sees robust demand driven by enterprise AI adoption, particularly through a major expanded partnership with Google Cloud. Record Q4 revenue of $1.95B (+12% YoY) and FY26 revenue of $6.93B (+5% YoY), with operating margin hitting a record 32%.
Management highlighted accelerating enterprise AI adoption, with 500 AI wins in Q4 and 1,100 for FY26. They see AI as a growth engine, with solutions like AFX and AIDE gaining traction, and emphasize their ability to activate unstructured data for AI as a key competitive…
Management highlighted accelerating enterprise AI adoption, with 500 AI wins in Q4 and 1,100 for FY26. They see AI as a growth engine, with solutions like AFX and AIDE gaining traction, and emphasize their ability to activate unstructured data for AI as a key competitive…
AI momentum is strong: ~500 AI wins in Q4, over 1,100 for FY26, with nearly half from customers where NetApp was not the incumbent data infrastructure provider.
Guidance · revenue to $7.45B
Management highlighted accelerating enterprise AI adoption, with 500 AI wins in Q4 and 1,100 for FY26. They see AI as a growth engine, with solutions like AFX and AIDE gaining traction, and emphasize their ability to activate unstructured data for AI as a key competitive advantage.
NetApp guides to an acceleration in revenue growth for FY27, driven by AI momentum, cloud growth, and a positive demand environment. Despite component cost pressures, the company expects gross margin to moderate but maintain strong operating leverage.
Management expressed strong confidence in sustained demand and growth, highlighted record results and ambitious FY27 guidance, while acknowledging component cost headwinds but signaling proactive mitigation.
“For us, July quarter is more or less the trough, and from there on, we're anticipating gradual improvements... those price adjustments will start seeing more and more effect as the year progresses.”
“I was particularly pleased with the fact that a very large percentage of our AI wins were from customers who we are not the incumbent, you know, data infrastructure provider.”
“This outperformance was driven by an increase in support performance obligations associated with the Google agreement, as well as Keystone unbilled RPO”
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| EPS | FY2027 | $8.70–$9.00 | $8.85 | INITIATED |
| EPS | FY2027 Q1 | $2.05–$2.15 | $2.10 | INITIATED |
| Gross margin | FY2027 | 68.5%–69.5% | 69% | INITIATED |
| Op margin | FY2027 | 29.1%–30.1% | 29.6% | INITIATED |
| Revenue | FY2027 | $7.325B–$7.575B | $7.45B | INITIATED |
| Revenue | FY2027 Q1 | $1.75B–$1.9B | $1.825B | INITIATED |
| Issued | Metric | Target | Guide | Actual | Outcome |
|---|---|---|---|---|---|
| FY2026 Q3 | EPS | FY2026 Q4 | $2.21–$2.31 | $2.43 | Met / beat |
| FY2026 Q3 | Revenue | FY2026 Q4 | $1.795B–$1.945B | $1.948B | Met / beat |
| FY2026 Q2 | EPS | FY2026 Q3 | $2.01–$2.11 | $2.12 | Met / beat |
| FY2026 Q2 | Gross margin | FY2026 Q3 | 72.3%–73.3% | 70.58% | Missed |
| FY2026 Q2 | Op margin | FY2026 Q3 | 30.5%–31.5% | 25.16% | Missed |
| FY2026 Q2 | Revenue | FY2026 Q3 | $1.615B–$1.765B | $1.713B | Met / beat |
The AFX solution powering NVIDIA SuperPOD environments indicates a close partnership and integration with NVIDIA's AI infrastructure, suggesting mutual dependency and demand for AI storage.
“NetApp's disaggregated AFX solution for their NVIDIA SuperPOD environment enabled independent scaling of compute and storage, delivering flexible, future-proof infrastructure.”
… AI solutions. These offerings help organizations simplify their AI infrastructure, eliminate silos, and accelerate their data pipelines. reinforcing NetApp's role as the data infrastructure platform for AI. Let me walk through a couple of additional customer wins that spotlight NetApp's competitive advantages. A European government agency required real-time situational awareness with ultra-fast, latency-free data processing. NetApp's disaggregated AFX solution for their NVIDIA SuperPOD environment enabled independent scaling of compute and storage, delivering flexible, future-proof infrastructure. Our rapid execution and expertise empowered a robust, mission-critical AI platform to meet evolving operational demands. A global financial leader signed a $20 million deal with NetApp to accelerate its AI-driven fraud detection and customer personalization. NetApp's GPU-ready, low-latency data lake platform delivers high-performance access to multi-petabyte datasets, enabling global, real-time fraud scoring, continuous model retraining, and robust enterprise governance and resiliency. It's high-impact wins like these that helped us achieve record-setting results while navigating a …
This win demonstrates the value of NetApp's integration with Azure Databricks for AI, highlighting the synergies and the strength of the cloud partnership.
“A leading insurance company accelerated financial risk modeling and data science by connecting Azure Databricks directly to their data in Azure NetApp files, ensuring security, governance, and performance.”
… NetApp's capabilities deeper into their cloud environments. Customers are increasingly choosing NetApp, to simplify and scale their hybrid and multi-cloud environments, leveraging our unified data management capabilities for operational consistency and agility. Our expanding cloud portfolio is unlocking new use cases and verticals, including AI, fueling growth and expanding our addressable market. For example, a leading insurance company accelerated financial risk modeling and data science by connecting Azure Databricks directly to their data in Azure NetApp files, ensuring security, governance, and performance. Similarly, an Asian engineering company streamlined its GenAI chatbot deployment on AWS by leveraging FSx for NetApp on tap. allowing secure, permission-aware access to data in place and reducing operational overhead. Across these wins, the common thread is NetApp's ability to deliver secure, governed, high-performance data access for AI workloads, enabling customers to innovate faster and operate more efficiently, all while maintaining control and compliance. FY26 all-flash revenue was $4.2 billion, an increase of 11% from last year, propelled by robust Q4 performance …
Wins on AWS for GenAI deployments demonstrate the viability of NetApp's cloud storage service with AWS, showing value in the partnership for AI workloads.
“An Asian engineering company streamlined its GenAI chatbot deployment on AWS by leveraging FSx for NetApp on tap.”
… our unified data management capabilities for operational consistency and agility. Our expanding cloud portfolio is unlocking new use cases and verticals, including AI, fueling growth and expanding our addressable market. For example, a leading insurance company accelerated financial risk modeling and data science by connecting Azure Databricks directly to their data in Azure NetApp files, ensuring security, governance, and performance. Similarly, an Asian engineering company streamlined its GenAI chatbot deployment on AWS by leveraging FSx for NetApp on tap. allowing secure, permission-aware access to data in place and reducing operational overhead. Across these wins, the common thread is NetApp's ability to deliver secure, governed, high-performance data access for AI workloads, enabling customers to innovate faster and operate more efficiently, all while maintaining control and compliance. FY26 all-flash revenue was $4.2 billion, an increase of 11% from last year, propelled by robust Q4 performance with revenue of $1.2 billion, up 18% year-over-year. Customers are choosing NetApp to power their most mission-critical workloads, and our momentum in this segment is a testament …
The Google Cloud Distributed Cloud agreement has a significant support revenue component, as evidenced by a large increase in unbilled remaining performance obligations (RPO). — The deal frames NetApp as a core data layer for sovereign cloud infrastructure, providing a durable multi-year revenue stream.
“Another significant achievement is our expanded partnership with Google Cloud for Google Distributed Cloud, which underscores both the growing opportunity in AI and sovereign cloud environments and the strength of our technology.”
… reinforce our position as a trusted collaborator in the evolving cloud ecosystem. A leading neocloud turned to NetApp for intelligent all-flash storage infrastructure, eliminating complexity and powering orchestration at cloud scale. The new deployments will help accelerate AI onboarding and time to value. With this win, we can begin to expand into other workloads to become the foundational data layer. Another significant achievement is our expanded partnership with Google Cloud for Google Distributed Cloud, which underscores both the growing opportunity in AI and sovereign cloud environments and the strength of our technology. This collaboration enables government agencies and regulated enterprises to leverage advanced AI capabilities from Google and NetApp's secure by design data infrastructure platform to modernize operations and accelerate AI-driven insights, even in the most sensitive environments. We achieved record revenue in Q4 and FY26, driven by public cloud, All Flash and Keystone, which all reached all-time highs, reflecting strong demand from customers modernizing infrastructure and scaling AI workloads. Public cloud revenue grew to $688 million in FY26, up 18% …
NetApp's AI wins are increasingly from non-incumbent accounts with large data sets, indicating share gains against competitors like Dell and Pure Storage in AI-focused workloads. — This signals a potential shift in the competitive landscape for AI storage, with NetApp demonstrating success in displacing incumbents.
Yeah, hi. Thank you for taking my question. I had a couple. One, I wanted to understand the incremental revenue opportunity from AIDE. And do you view this as something that will help you gain share in the traditional market, or is that an add-on module that you can sell and expand into addressing more AI workloads? How do you think about that, and how do you think about quantifying how would you monetize it in terms of percentage of revenue and so on and so forth?
There's two use cases. Thank you for your question. There's two use cases, as you correctly said. One, for our install base, it creates a very sticky competitive mode where we are able to give them a huge amount of value for their existing infrastructure. We can choose to monetize that as either standalone, you know, software subscription or as part of a broader offering, you know, a fuller solution including storage. And then I think with regard to the net new environment, as I said, you know, I was particularly pleased with the fact that a very large percentage of our AI wins were from customers who we are not the incumbent, you know, data infrastructure provider. And there, what we are able to do is combine AI DE together with our storage so that they can build a really good data lake or a data prep environment. And we saw momentum on that this past quarter.
NetApp explicitly guided that the July quarter is the product gross margin trough, with gradual improvements expected through the fiscal year as price increases take effect.