Shares of NetApp (NTAP) plummeted 16.88% in Friday's intraday trading session, following the company's fiscal third-quarter earnings release. The data storage firm reported revenue of $1.64 billion, missing analyst expectations of $1.69 billion. While adjusted earnings per share of $1.91 matched forecasts, investors were spooked by NetApp's lowered full-year revenue and earnings guidance.

The company now expects fiscal 2025 revenue between $6.49 billion and $6.64 billion, down from its prior range of $6.54 billion to $6.74 billion. NetApp also cut its full-year adjusted EPS outlook to $7.17 - $7.27, versus previous guidance of $7.20 - $7.40. The reduced outlook reflects diminishing demand conditions for NetApp's core data storage offerings and the planned divestiture of its cloud optimization platform, Spot.

NetApp CEO George Kurian acknowledged sales execution issues and delayed deal closures as contributing factors to the revenue miss. Analysts also pointed to softness in public sector spending due to political and economic uncertainty. However, Kurian assured that the company's flexible global supply chain would help mitigate potential tariff impacts, as NetApp has reduced its dependency on China in recent years.