NetApp (NASDAQ: NTAP) reported its third-quarter fiscal 2026 results, highlighting a 4% year-over-year increase in net revenues alongside record non-GAAP earnings per share.
Operations
- Billings for the third quarter reached $1.89 billion, representing a 10% increase compared with the corresponding quarter last year.
- All-flash array revenue grew 11% year-over-year to $1.0 billion in the third quarter.
- Public Cloud segment revenue remained flat at $174 million year-over-year, though first-party and marketplace storage services within the segment grew 27%.
Revenue & Closings
- Total net revenues for the third quarter were $1.71 billion, a 4% increase from $1.64 billion in the prior-year period.
- The Hybrid Cloud segment generated $1.54 billion in revenue, up 5% year-over-year.
Margins & Profitability
- The company reported a GAAP gross margin of 70.6%, an increase from 69.8% in the corresponding quarter last year.
- Non-GAAP gross margin was 71.2%, up from 70.7% in the prior-year period.
- Third-quarter GAAP operating margin was 25.3%, and non-GAAP operating margin was 31.1%.
Bottom Line
- GAAP net income for the quarter was $334 million, a 12% increase from $299 million in the prior-year period.
- Income before income taxes was $433 million, up from $370 million in the corresponding quarter last year.
- On a per-share basis, GAAP earnings were $1.67, a 16% year-over-year increase.
- Non-GAAP net income was $423 million, up 7% year-over-year, and non-GAAP earnings per share reached $2.12.
Outlook
- For the fourth quarter of fiscal 2026, management expects net revenues to be in the range of $1.795 billion to $1.945 billion.
- Management forecasts full fiscal year 2026 net revenues between $6.772 billion and $6.922 billion.
- Management projects full-year GAAP earnings per share in the range of $6.07 to $6.17, and non-GAAP earnings per share between $7.92 and $8.02.