NetApp, Inc. SEC 10-Q Report

NetApp, Inc., a leading provider of data management and cloud services, has released its Form 10-Q report for the first quarter of fiscal 2026. The report highlights the company's financial performance, operational achievements, and strategic initiatives aimed at driving future growth. This comprehensive summary provides an overview of the key financial and business highlights from the report.

Financial Highlights

• Net Revenues: $1,559 million, increased by 1% compared to the same period last year, driven by an increase in services revenues.
• Gross Profit: $1,098 million, with a gross margin of 70.4%, consistent with the prior year.
• Income from Operations: $309 million, representing 20% of net revenues, an increase from 18% in the prior year.
• Net Income: $233 million, a decrease from $248 million in the prior year, impacted by a higher effective tax rate.
• Net Income Per Share (Basic): $1.16, compared to $1.20 in the prior year.
• Net Income Per Share (Diluted): $1.15, compared to $1.17 in the prior year.

Business Highlights

• Revenue Segments: The company's operations are divided into two segments: Hybrid Cloud and Public Cloud. Hybrid Cloud includes software, hardware, and related support, while Public Cloud offers products delivered primarily as-a-service, including cloud storage, data services, and operational services.
• Geographical Performance: The Americas region, including the U.S., Canada, and Latin America, accounted for $791 million in net revenues, showing growth compared to the previous year. The EMEA region generated $503 million, while the APAC region remained stable at $265 million.
• Sales Units: There was a decrease in Hybrid Cloud product revenues due to lower sales of hybrid systems, although this was partially offset by higher sales of all-flash array systems.
• Future Outlook: The company anticipates capital expenditures for the remainder of fiscal 2026 to be between $125 million and $175 million. Additionally, the company is monitoring the impact of the One Big Beautiful Bill Act (OBBB) and Pillar Two rules on its operations.
• Operational Strategy: The company is focused on modernizing data centers and enhancing resilience against ransomware, as well as developing scalable, high-performance data pipelines for AI workloads.
• Stock Repurchase and Dividend Activity: During the first three months of fiscal 2026, the company repurchased 3.0 million shares of its common stock and declared cash dividends of $0.52 per share.
• Senior Notes Repayment: The company repaid its 1.875% Senior Notes due June 2025, which impacted its cash flow and liquidity management strategies.

SEC Filing: NetApp, Inc. [ NTAP ] - 10-Q - Aug. 27, 2025