$NTAP (-7.49%) | NetApp Q2 Earnings Highlights:
🔹 Adj EPS: $1.87 (Est. $1.78) 🟢; UP +18% YoY
🔹 Revenue: $1.66B (Est. $1.65B) 🟢; UP +6% YoY
Q3 Guidance:
🔹 Revenue: $1.61B-$1.76B (Est. $1.68B) 🟡
🔹 Adjusted EPS: $1.85-$1.95 (Est. $1.85) 🟡
FY25 Guidance:
🔹 Revenue: $6.54B-$6.74B (Prev. $6.48B-$6.68B, Est. $6.68B) 🟡; UP +8%-9% YoY
🔹 Adj EPS: $7.20-$7.40 (Prev. $7.00-$7.20, Est. $7.11) 🟡
🔹 Adjusted Operating Margin: 28%-28.5% (Prev. 27%-28%) 🟢
Q2 Segment Performance:
🔹 Hybrid Cloud Revenue: $1.49B; UP +5.8% YoY (Met Estimate)
🔹 Public Cloud Revenue: $168M (Est. $164.3M) 🟢; UP +9.1% YoY
🔹 Product Revenue: $768M (Est. $769.8M) 🟡; UP +8.8% YoY
🔹 Support Revenue: $635M (Est. $633.5M) 🟢; UP +1.9% YoY
Profitability Metrics:
🔹 Non-GAAP Gross Margin: 71.5% (Est. 71.6%) 🟡
🔹 Non-GAAP Operating Margin: 29% (Est. 27.9%) 🟢
🔹 GAAP Net Income: $299M; UP +28% YoY
🔹 Free Cash Flow: $105M
Business Highlights:
🔹 All-Flash Array ARR: $3.8B; UP +19% YoY
🔹 Cloud Storage Services: +43% YoY
🔹 Expanded partnerships with Google Cloud and AWS for AI-ready infrastructure.
Capital Allocation:
🔹 Cash & Investments: $2.22B
🔹 Shareholder Returns: $406M through share repurchases and dividends.
🔹 Dividend: $0.52/share payable January 22, 2025.
Management Commentary:
🔸 CEO George Kurian:
"Our strong Q2 performance was driven by record-breaking all-flash storage and robust cloud storage growth. We are well-positioned to outpace the market and deliver outstanding value for our customers and shareholders."
