Overview
NetApp fiscal Q2 revenue grows 3% yr/yr, beating analyst expectations
Adjusted EPS for fiscal Q2 beats consensus, driven by strong demand for AI solutions
Company returns $353 mln to shareholders via repurchases and dividends
Outlook
NetApp sees Q3 revenue between $1.615 bln and $1.765 bln
NetApp expects Q3 GAAP EPS between $1.52 and $1.62
NetApp anticipates FY26 revenue between $6.625 bln and $6.875 bln
Result Drivers
AI SOLUTIONS DEMAND - Strong demand for AI solutions contributed to revenue growth, according to CEO George Kurian
ALL-FLASH ARRAY GROWTH - All-flash array revenue increased 9% yr/yr to $1 bln, contributing to overall revenue growth
CLOUD STORAGE SERVICES - Public Cloud revenue rose 32% yr/yr, driven by first-party and marketplace storage services
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $1.71 bln | $1.69 bln (16 Analysts) |
Q2 Adjusted EPS | Beat | $2.05 | $1.89 (17 Analysts) |
Q2 EPS | $1.51 | ||
Q2 Net Income | $305 mln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 7 "strong buy" or "buy", 14 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the computer hardware peer group is "buy."
Wall Street's median 12-month price target for NetApp Inc is $119.09, about 8.5% above its November 24 closing price of $108.96
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 13 three months ago
Press Release: ID:nBw91rVTVa
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)