S&P 500 eases slightly from fresh record high after stronger economic growth
SAN JOSE - NetApp Inc. (NASDAQ:NTAP) reported first-quarter fiscal 2026 results that exceeded analyst expectations, but shares tumbled 9% as investors appeared disappointed with the company’s outlook despite achieving the top market position in all-flash storage.
The intelligent data infrastructure company posted adjusted earnings per share of $1.55 for the quarter ended July 25, slightly above the analyst estimate of $1.54. Revenue came in at $1.56 billion, surpassing the consensus estimate of $1.54 billion and representing a 1% increase YoY.
NetApp’s stock decline came despite the company providing guidance that aligned with analyst expectations. For fiscal 2026, NetApp forecasts adjusted earnings of $7.60-$7.90 per share on revenue of $6.625-6.875 billion, compared to consensus estimates of $7.75 and $6.77 billion, respectively.
"We delivered a solid start to fiscal year 2026 as organizations are increasingly choosing NetApp to build future-proof AI-ready data infrastructure," said George Kurian, Chief Executive Officer. "By helping customers modernize with cutting-edge and cyber-resilient storage solutions, we have taken the lead position in the all-flash market."
All-flash array revenue grew 6% YoY to $893 million, while first-party and marketplace Public Cloud storage services revenue jumped 33% YoY. The company reported record first-quarter cash from operations of $673 million and free cash flow of $620 million.
For the second quarter, NetApp expects adjusted earnings of $1.84-$1.94 per share on revenue between $1.615-1.765 billion, compared to analyst estimates of $1.87 and $1.68 billion.
The company returned $404 million to stockholders through share repurchases and dividends during the quarter and announced a quarterly dividend of $0.52 per share, payable on October 22 to shareholders of record as of October 3.
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