$NTAP (+1,18%)

🔹 Adj. EPS: $1.93 (Est. $1.89) 🟢; +7% YoY

🔹 Revenue: $1.73B (Est. $1.72B) 🟢; +4% YoY

🔹 All-Flash ARR: $4.1B; +14% YoY

🔹 Public Cloud Rev: $164M; +8% YoY

Q1 Guide:

🔹 Adj. EPS: $1.48–$1.58 (Est. $1.66) 🔴

🔹 Revenue: $1.46B–$1.61B (Est. $1.60B) 🟡

🔹 Gross Margin (Non-GAAP): 71%–72%

🔹 Op. Margin (Non-GAAP): 25%–26%

FY26 Guidance:

🔹 Revenue: $6.625B–$6.875B

🔹 Adj. EPS: $7.60–$7.90

🔹 Gross Margin (Non-GAAP): 71%–72%

🔹 Op. Margin (Non-GAAP): 28.8%–29.8%

Other Key Q1 Metrics:

🔹 Gross Profit (Non-GAAP): $1.20B; Record

🔹 Op. Income (Non-GAAP): $496M; Record

🔹 Cash from Ops: $675M (vs. $613M YoY)

Dividend Update:

🔸 Next dividend: $0.52/share, payable July 23, 2025

Strategic & Product Highlights:

🔸 Innovation: New ASA/FAS50 storage arrays, EF portfolio QLC support, BlueXP AI tools, AI/ML data vaulting, ransomware protection, Trident 25.02 for Kubernetes

🔸 Cloud Focus: Exited Spot by NetApp; stronger Microsoft & Google Cloud integrations

🔸 AI Leadership: Validated by NVIDIA for DGX SuperPOD; integrated with NVIDIA AI Data Platform

🔸 NFL Partnership: Named Official Intelligent Data Infrastructure Partner

Executive & Recognition:

🔸 New Appointments:

 • Frank Pelzer to Board

 • Beth O’Callahan as Chief Administrative Officer

🔸 Awards:

 • Google Cloud Infra Partner of the Year

 • Gartner Peer Insights: Customers’ Choice

 • CRN: Top AI, Storage, Data Center & Partner Awards

$NTAP (+1,18%) ’s value comes from its ability to drive revenue growth into earnings growth through a business with solid margins.

The stock trades at a reasonable valuation with a forward P/E of 16.8x, reflecting strong earnings growth and potential in AI and cloud segments.

This one should be on investors' watchlist.

$NTAP (+1,18%) 's position in the data management and AI market, as well as its expanded flash portfolio, make it well-positioned for top-line growth.

NetApp's results for FY24 thus far reflect a sequential upward trend in billings, revenue, and its all-flash array annualized revenue run rate.

We're expecting more strong results well into FY25 and beyond...

$NTAP (+1,18%) | 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."