NetApp Inc. (NASDAQ: NTAP) shares surged 5.85% in after-hours trading on Tuesday following the release of its second-quarter fiscal 2026 earnings report, which exceeded analyst expectations and prompted the company to raise its full-year guidance.

The data storage and cloud services provider reported adjusted earnings per share of $2.05, significantly beating the consensus estimate of $1.89. Revenue for the quarter came in at $1.71 billion, also surpassing analysts' expectations of $1.69 billion. The company's performance was driven by strong demand for its AI solutions, cloud storage services, and all-flash offerings.

NetApp CEO George Kurian highlighted the company's execution and operational discipline, stating, "Through strong execution and operational discipline, we delivered an outstanding second quarter with revenue growth driven by strong demand for our AI solutions, first-party and marketplace cloud storage services, and all-flash offerings." The company's all-flash array revenue grew 9% year-over-year to $1 billion, while public cloud revenue rose 32% year-over-year.

In response to the strong results, NetApp raised its fiscal 2026 adjusted earnings per share guidance to a range of $7.75 to $8.05, up from the previous forecast of $7.60 to $7.90. The company also maintained its full-year revenue guidance of $6.625 billion to $6.875 billion. These positive developments have clearly resonated with investors, leading to the significant after-hours stock price increase.