NetApp Raises Fiscal 2027 Outlook After Record Quarter
First-quarter net revenues reached a record $2.03 billion, up 30% from a year earlier, after 12% growth in the fourth quarter and 4% in the third.
NetApp (NTAP), the Intelligent Data Infrastructure company, reported record net revenues of $2.03 billion for the first quarter of fiscal year 2027, which ended July 31, 2026, up 30% from a year earlier. That pace marked a sharp acceleration from 12% year-over-year growth in the fourth quarter of fiscal 2026 and 4% growth in the third quarter.
Chief Executive Officer George Kurian said the company exceeded guidance on every metric and delivered its strongest first quarter ever, citing both existing customers and new ones choosing the NetApp Platform for AI and hybrid multicloud work.
GAAP earnings were $1.88 a share. Non-GAAP earnings reached a record $2.58 a share. GAAP operating margin was 23.9% and non-GAAP operating margin was 31.9%. Restructuring charges were $56 million in the three months ended July 31, 2026, versus $2 million a year earlier.
Hybrid Cloud segment revenues were $1.82 billion. Public Cloud segment revenues hit a record $206 million. All-flash array net revenue reached a record $1.3 billion. Billings were $2.06 billion.
Product revenue was $987 million and services revenue was $1.04 billion. Gross profit was $1.42 billion. Net cash provided by operating activities was $503 million. Free cash flow was $401 million.
Cash, cash equivalents and investments were $3.58 billion at July 31, 2026. Inventories were $375 million. Accounts receivable were $966 million. Long-term debt was $1.94 billion, with a $550 million current portion.
The company acquired DataPelago, Inc., an AI data infrastructure company, to help customers simplify and accelerate AI deployment at scale. It also announced StorageGRID 12.1, Trident 26.06 capabilities, Azure NetApp Files support for large files up to 64 TiB, an Object REST API, a migration assistant, nconnect on Azure VMware Solution, and Instaclustr for Model Context Protocol Gateway. Partnerships included Cisco, CGI, SK Telecom, Okestro, and Tata Consultancy Services.
For the second quarter of fiscal 2027, NetApp expects net revenues of $2.025 billion to $2.175 billion, GAAP earnings of $1.97 to $2.07 a share, and non-GAAP earnings of $2.54 to $2.64 a share. Consolidated gross margins are expected at 66.0% to 67.0% on a GAAP basis and 67.0% to 68.0% on a non-GAAP basis. Operating margins are expected at 24.9% to 25.9% GAAP and 30.9% to 31.9% non-GAAP.
The company significantly raised full-year fiscal 2027 guidance. Net revenues are expected at $7.975 billion to $8.225 billion. GAAP earnings are expected at $7.35 to $7.65 a share and non-GAAP earnings at $9.73 to $10.03 a share. Full-year gross margins are expected at 67.1% to 68.1% GAAP and 68.1% to 69.1% non-GAAP. Operating margins are expected at 24.3% to 25.3% GAAP and 30.3% to 31.3% non-GAAP.
The next cash dividend is $0.52 a share, payable October 28, 2026, to stockholders of record as of October 9, 2026. The company appointed Alvaro Celis as Chief Partner and Ecosystem Officer.