Data storage firm NetApp Q2 revenue beats analyst expectations on strong AI demand

NetApp, Inc.

NetApp, Inc.

NTAP

0.00


Overview

  • NetApp fiscal Q2 revenue grows 3% yr/yr, beating analyst expectations

  • Adjusted EPS for fiscal Q2 beats consensus, driven by strong demand for AI solutions

  • Company returns $353 mln to shareholders via repurchases and dividends


Outlook

  • NetApp sees Q3 revenue between $1.615 bln and $1.765 bln

  • NetApp expects Q3 GAAP EPS between $1.52 and $1.62

  • NetApp anticipates FY26 revenue between $6.625 bln and $6.875 bln


Result Drivers

  • AI SOLUTIONS DEMAND - Strong demand for AI solutions contributed to revenue growth, according to CEO George Kurian

  • ALL-FLASH ARRAY GROWTH - All-flash array revenue increased 9% yr/yr to $1 bln, contributing to overall revenue growth

  • CLOUD STORAGE SERVICES - Public Cloud revenue rose 32% yr/yr, driven by first-party and marketplace storage services


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Revenue

Beat

$1.71 bln

$1.69 bln (16 Analysts)

Q2 Adjusted EPS

Beat

$2.05

$1.89 (17 Analysts)

Q2 EPS

$1.51

Q2 Net Income

$305 mln


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 7 "strong buy" or "buy", 14 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the computer hardware peer group is "buy."

  • Wall Street's median 12-month price target for NetApp Inc is $119.09, about 8.5% above its November 24 closing price of $108.96

  • The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nBw91rVTVa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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