NetApp 2026 Q2 Earnings Revenue Up 2.8% and Net Income Grows 2.0%

NetApp (NTAP) reported fiscal 2026 Q2 earnings on Nov 25, 2025, with revenue and net income growth outpacing expectations. The company raised full-year guidance, reflecting confidence in sustained demand for AI and cloud solutions.

Revenue

NetApp’s total revenue rose 2.8% to $1.71 billion in Q2 2026, driven by strong performance in high-margin segments. Product revenue led with $788 million, while support services added $647 million. Professional and other services brought in $99 million, and public cloud revenue stood at $171 million, rounding out the $1.71 billion total.

Earnings/Net Income

EPS increased 4.1% to $1.53, with net income reaching $305 million—a 2.0% rise from the prior year. The 4.1% EPS increase reflects solid earnings growth, bolstered by improved profitability metrics.

Price Action

The stock price of NetApp has climbed 3.22% during the latest trading day, has climbed 4.77% during the most recent full trading week, and has dropped 4.42% month-to-date.

Post-Earnings Price Action Review

The strategy of buying NetApp (NTAP) shares after its revenue beat expectations on the financial report release date and holding for 30 days resulted in a 8.61% return over the past three years. However, this performance was significantly under the benchmark return of 65.99%, with an excess return of -57.38% and a CAGR of 2.81%. The strategy had a maximum drawdown of 0.00% and a Sharpe ratio of 0.09, indicating a low risk profile but modest returns compared to the market.

CEO Commentary

CEO George Kurian highlighted the company’s 3% revenue growth, driven by AI and cloud solutions. He emphasized the shift to all-flash and public cloud, which now account for 70% of revenue, and noted improved profitability. Strategic priorities include AI innovations like AFX and AIDE, positioning NetApp for long-term growth in hybrid and multicloud environments.

Guidance

NetApp raised FY2026 revenue guidance to $6.625–$6.875 billion and non-GAAP EPS to $7.75–$8.05. Q3 revenue is expected to range between $1.615–$1.765 billion, reflecting confidence in maintaining growth momentum.

Additional News

1. Swiss National Bank

   increased its stake by 9%, acquiring 51,400 shares to hold 0.31% of NetApp.

2. New AI Platforms: NetApp launched AFX and AIDE, enhancing AI data management and integration with NVIDIA SuperPOD.

3. Dividend Announcement: A quarterly dividend of $0.52 per share was declared, reflecting a 1.9% yield.