NetApp shares fall 4% on weak guidance despite Q4 earnings beat

Published 29/05/2025, 21:10
NetApp shares fall 4% on weak guidance despite Q4 earnings beat

SAN JOSE, Calif. - NetApp Inc. (NASDAQ:NTAP) shares fell 4.5% in after-hours trading Thursday as the data storage company’s first-quarter guidance fell short of analyst expectations, overshadowing better-than-expected fourth-quarter results.

The intelligent data infrastructure company reported adjusted earnings of $1.93 per share for its fiscal fourth quarter, beating the analyst consensus of $1.89. Revenue rose 4% year-over-year to $1.73 billion, slightly above estimates of $1.72 billion.

However, NetApp’s outlook for the current quarter disappointed investors. The company forecast first-quarter adjusted earnings of $1.48 to $1.58 per share on revenue of $1.46 billion to $1.61 billion. Both ranges fell below Wall Street’s projections of $1.66 per share in earnings and $1.6 billion in revenue.

For the full fiscal year 2025, NetApp reported record revenue of $6.57 billion, up 5% from the previous year. The company also achieved record non-GAAP operating profit of $1.86 billion and operating margins of 28%.

"Fiscal Year 2025 marked many revenue and profitability records, driven by significant market share gains in all-flash storage and accelerating growth in our first party and marketplace storage services," said CEO George Kurian.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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