NetApp meets earnings estimates but lowers guidance, stock price drops

From Nasdaq: 2025-02-28 15:00:00

NetApp, Inc. (NTAP) reported third-quarter fiscal 2025 earnings of $1.91 per share, in line with estimates but down 1.6% YoY. Revenues of $1.64 billion increased 2% YoY but missed consensus. NTAP lowered its full-year outlook due to various factors, expecting revenues of $6.49-$6.64 billion and non-GAAP earnings of $7.17-$7.27 per share.

In the fiscal third quarter, NTAP’s Hybrid Cloud segment revenues increased by 1% to $1.47 billion, while the Public Cloud segment saw revenues improve by 15% to $174 million. The company’s All-Flash Array Business showed a 10% annualized net revenue run rate increase.

NTAP’s non-GAAP gross margin was 70.7%, down 200 bps YoY. Operating income rose 1.4% YoY to $492 million, with net cash from operations at $385 million. The company returned $306 million to shareholders in dividends and buybacks in the quarter.

For Q4, NTAP expects non-GAAP EPS of $1.84-$1.94 and revenues of $1.65-$1.8 billion. Shares fell 15.3% in pre-market trading. Competitors like Pure Storage (PSTG) and Quantum Corporation (QMCO) also reported their earnings, showing mixed results compared to NTAP.



Read more at Nasdaq: NetApp’s Q3 Earnings Meet Estimates, Stock Tanks on Lowered Guidance