Fourth quarter net revenues of $1.73 billion, an increase of 4% year-over-year; Fiscal year 2025 net revenues of $6.57 billion, an increase of 5% year-over-year

Record all-flash array annualized net revenue run rate¹ of $4.1 billion, an increase of 14% year-over-year
Record first-party and marketplace Public Cloud services revenue of $416 million in fiscal year 2025, an increase of 43% year-over-year
Record billings² of $6.78 billion for fiscal year 2025, an increase of 8% year-over-year
Record GAAP gross profit of $1.19 billion for the fourth quarter; record non-GAAP gross profit² of $1.20 billion
Record GAAP gross profit of $4.61 billion for fiscal year 2025; record non-GAAP gross profit of $4.67 billion
GAAP operating profit of $348 million for the fourth quarter; record non-GAAP operating profit² of $496 million
Record GAAP operating profit of $1.34 billion for fiscal year 2025; record non-GAAP operating profit of $1.86 billion
Record GAAP operating margins of 20% for fiscal year 2025; record non-GAAP operating margins² of 28%
Returned $1.57 billion to stockholders through share repurchases and cash dividends in fiscal year 2025

NetApp (NASDAQ:NTAP), the intelligent data infrastructure company, today reported financial results for the fourth quarter and fiscal year 2025, which ended on April 25, 2025.

"Fiscal Year 2025 marked many revenue and profitability records, driven by significant market share gains in all-flash storage and accelerating growth in our first party and marketplace storage services. During the year, we refreshed our entire systems portfolio, sharpened the focus of our cloud services, and positioned ourselves to lead in the enterprise AI market," said George Kurian, Chief Executive Officer. "We are starting fiscal year 2026 following a year of market share gains, armed with the strongest portfolio in the company's history and a differentiated value proposition that addresses customers' top priorities. Looking ahead, I am confident our continued innovation and market expansion will drive sustainable long-term growth."

Fourth Quarter of Fiscal Year 2025 Financial Results

Net revenues: $1.73 billion, compared to $1.67 billion in the fourth quarter of fiscal year 2024; a year-over-year increase of 4%.
- Hybrid Cloud segment revenue: $1.57 billion, compared to $1.52 billion in the fourth quarter of fiscal year 2024.
- Public Cloud segment revenue: $164 million, compared to $152 million in the fourth quarter of fiscal year 2024.
Billings: $2.03 billion, compared to $1.81 billion in the fourth quarter of fiscal year 2024; a year-over-year increase of 12%.
All-flash array ARR: $4.1 billion, compared to $3.6 billion in the fourth quarter of fiscal year 2024; a year-over-year increase of 14%.
Net income: GAAP net income of $340 million, compared to $291 million in the fourth quarter of fiscal year 2024; non-GAAP net incomeof $397 million, compared to $382 million in the fourth quarter of fiscal year 2024.
Earnings per share: GAAP net income per share³of $1.65, compared to $1.37 in the fourth quarter of fiscal year 2024; non-GAAP net income per share²of $1.93, compared to $1.80 in the fourth quarter of fiscal year 2024.
Cash, cash equivalents and investments: $3.85 billion at the end of the fourth quarter of fiscal year 2025.
Cash provided by operations: $675 million, compared to $613 million in the fourth quarter of fiscal year 2024.
Share repurchases and dividends: Returned $355 million to stockholders through share repurchases and cash dividends.

Fiscal Year 2025 Financial Highlights

Net revenues: $6.57 billion, compared to $6.27 billion in fiscal year 2024; a year-over-year increase of 5%.
- Hybrid Cloud segment revenue: $5.91 billion, compared to $5.66 billion in fiscal year 2024.
- Public Cloud segment revenue: $665 million, compared to $611 million in fiscal year 2024.
Billings: $6.78 billion, compared to $6.25 billion in fiscal year 2024; a year-over-year increase of 8%.
Net income: GAAP net income of $1.19 billion, compared to $986 million in fiscal year 2024; non-GAAP net income of $1.52 billion, compared to $1.38 billion in fiscal year 2024.
Earnings per share: GAAP net income per share of $5.67 compared to $4.63 in fiscal year 2024; non-GAAP net income per share of $7.25 compared to $6.46 in fiscal year 2024.
Cash provided by operations: $1.51 billion, compared to $1.69 billion in fiscal year 2024.
Share repurchases and dividends: Returned $1.57 billion to stockholders through share repurchases and cash dividends.

First Quarter of Fiscal Year 2026 Financial Outlook

The Company provided the following financial guidance for the first quarter of fiscal year 2026:

Net revenues are expected to be in the range of:	$1.455 billion - $1.605 billion
	GAAP	Non-GAAP
Consolidated gross margins are expected to be in the range of:	70% - 71%	71% - 72%
Operating margins are expected to be in the range of:	19% - 20%	25% - 26%
Earnings per share is expected to be in the range of:	$1.06 - $1.16	$1.48 - $1.58

Full Fiscal Year 2026 Financial Outlook

The Company provided the following financial guidance for the full fiscal year 2026:

Net revenues are expected to be in the range of:	$6.625 billion - $6.875 billion
	GAAP	Non-GAAP
Consolidated gross margins are expected to be in the range of:	70% - 71%	71% - 72%
Operating margins are expected to be in the range of:	22.8% - 23.8%	28.8% - 29.8%
Earnings per share is expected to be in the range of:	$5.80 - $6.10	$7.60 - $7.90

Dividend

The next cash dividend of $0.52 per share is to be paid on July 23, 2025, to stockholders of record as of the close of business on July 3, 2025.

Fourth Quarter of Fiscal Year 2025 Business Highlights

Leading Product Innovation

NetApp announced updates to its enterprise storage portfolio, expanding the ASA block-optimized family with systems targeted for remote or branch offices, giving customers even more options for simple, powerful, and affordable block storage.
NetApp updated the NetApp EF portfolio with 30TB or 60TB QLC drives to provide the fast, affordable, high-performance, and high-capacity options required for demanding workloads such as media and entertainment, HPC and AI, and high-performance databases.
NetApp introduced the NetApp FAS50 array, striking the right balance between price and performance optimization to enable businesses to store and manage secondary workloads efficiently.
NetApp released new data security capabilities, including post-quantum cryptography, enhanced ransomware protection, expanded backup and recovery support, and professional security services, to help customers strengthen their cyber resilience at the storage layer.
NetApp announced the NetApp™ cyber vaulting solution, powered by SnapLock™ compliance software, delivering confidentiality, integrity, and availability of data while maintaining storage infrastructure agility and efficiency.
NetApp introduced NetApp Trident™ 25.02 software with powerful new capabilities – from Fibre Channel support to advanced data protection – to simplify storage deployment and management on Kubernetes for both on-premises and cloud environments.
NetApp announced an enhancement to BlueXP™ workload factory for GenAI, enabling it to derive insights from images in PDF and Word documents, supporting multimodal data analysis for deeper, more accurate AI-powered insights.

Customer and Partner Momentum

The NFL named NetApp its Official Intelligent Data Infrastructure partner as the company works with the league to develop cutting-edge, silo-free storage technology that will allow it to manage its data to drive innovation.
NVIDIA validated NetApp's high-performance enterprise storage with NetApp ONTAP™ for NVIDIA DGX SuperPOD, NVIDIA Cloud Partners, and NVIDIA-Certified Systems, powering AI training and inferencing workloads.
NetApp and NVIDIA integrated the NVIDIA AI Data Platform with NetApp ONTAP to advance agentic AI, enabling businesses to power AI reasoning and inference through a unified, high-performance data pipeline optimized for hybrid cloud and unstructured data.
NetApp announced the general availability of Domino Volumes for NetApp ONTAP, giving users the ability to unify, orchestrate, and govern AI and data across environments with Domino's enterprise AI platform backed by NetApp.
Microsoft announced new capabilities for Azure NetApp Files, including a Flexible service level and enhanced scale and performance features, enabling organizations to control how they manage capacity and performance demands.
NetApp announced NetApp Cloud Volumes ONTAP Freemium deployment through the Microsoft Azure Marketplace, saving time and streamlining the setup of Cloud Volumes ONTAP instances.
NetApp and Google Cloud announced new enhancements to Google Cloud NetApp Volumes that boost scalability, performance, and AI integration, enabling enterprises to manage petabyte-scale workloads and seamlessly connect with tools like Vertex AI for advanced data-driven innovation.
NetApp introduced Autonomous Ransomware Protection for Amazon FSx for NetApp ONTAP, bringing industry-leading ransomware detection capabilities to AWS Cloud with FSx for ONTAP, enhancing data security.
United Kingdom (U.K.) distributor TD SYNNEX announced that it was appointed distributor for the NetApp Keystone™ storage-as-a-service solution in the U.K. and Ireland.
Australian cloud hosting provider Servers Australia announced a strategic collaboration with NetApp to support secure, high-performance, and scalable IT infrastructure.

Corporate News and Events

NetApp further honed the focus of its Public Cloud segment with the completion of the sale of the Spot by NetApp business to Flexera.
NetApp released new research identifying the trade-offs between U.K. business' sustainability goals and AI ambitions, revealing that technology companies are struggling to balance both due to data management challenges.

Awards and Recognition

NetApp received the 2025 Google Cloud Infrastructure Modernization Partner of the Year for Storage award for its achievements in the Google Cloud ecosystem, helping joint customers accelerate cloud workloads with intelligent data infrastructure and bring AI to their data with NetApp and Google Cloud.
NetApp was named a Customers' Choice in the 2025 Gartner Peer Insights Voice of the Customer for Primary Storage Platforms, with 98% of verified users saying they would recommend the company for its intelligent, secure, and scalable data infrastructure.
NetApp was recognized in CRN's AI 100 Awards as one of the "25 Hottest AI Companies for Data Center and Edge," with CEO George Kurian highlighting NetApp's success in AI-specific use cases and its ability to bridge the gap between AI systems and enterprise data.
As part of CRN's 2025 Storage 100 Awards, NetApp was named as a vendor bringing software capabilities, services, and cloud connectivity to storage technology, highlighting the company's leadership in bringing on-premises storage to the cloud.
NetApp was named one of the "Hottest Data Center Companies of 2025" as part of CRN's Data Center 50 List, described as the only enterprise-grade storage service embedded into the world's largest public clouds.
NetApp was listed as one of the "Coolest Data Management and Integration Tool Companies" for CRN's 2025 Big Data 100 Awards, spotlighting NetApp's hardware and software storage offerings.
GigaOm's Sonar report named NetApp a leader in the SaaS market, making it a standout company for partners and customers to consider.
NetApp was recognized as a Champion in the first-ever Canalys Global Channel Leadership Matrix, underscoring its excellence in channel management and commitment to partner success.
NetApp's Partner Sphere Partner Program was given five stars in CRN's "2025 Partner Program Guide," highlighting NetApp's new Partner Services benefit.
Jenni Flinders, SVP of NetApp's Worldwide Partner Organization, was recognized as one of the 50 Most Influential Channel Leaders in CRN's 2025 Channel Chiefs Awards, highlighting her commitment to NetApp partners and use of NetApp's new Partner Hub portal.
NetApp's Channel Lead for the U.K. and Ireland, Sonya Mathieu, was recognized in CRN's Channel Leaders EMEA List, highlighting her clear vision, execution, and influence on NetApp's channel programs.

Board and Executive Leadership Announcements

NetApp appointed Frank Pelzer, Chief Operating Officer of Spotnana, to its Board of Directors. Pelzer brings deep expertise in cloud, finance, and software to support NetApp's continued growth in intelligent data infrastructure.
NetApp appointed Beth O'Callahan as Chief Administrative Officer, formalizing her prior role as Chief Legal Officer and Interim Chief Human Resources Officer. Her expanded role includes Human Resources, Workplace Experience, and Corporate Communications functions alongside Legal, Compliance, Government Relations, and Sustainability to drive greater alignment and execution across the business.

Webcast and Conference Call Information

NetApp will host a conference call to discuss these results today at 2:30 p.m. Pacific Time. To access the live webcast of this event, go to the NetApp Investor Relations website at investors.netapp.com. In addition, this press release, historical supplemental data tables, and other information related to the call will be posted on the Investor Relations website. An audio replay will be available on the website after 4:30 p.m. Pacific Time today.

"Safe Harbor" Statement Under U.S. Private Securities Litigation Reform Act of 1995

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, all of the statements made in the First Quarter of Fiscal Year 2026 Financial Outlook section and the Full Fiscal Year 2026 Financial Outlook section, and statements about our business, economic and market outlook, financial guidance, our overall future prospects, our ability to compete for AI and other data-driven workloads against our competitors, our ability to deliver a modern approach to hybrid, multicloud infrastructure and data management, and our ability to deliver increasing results and value for our stakeholders. Actual results may differ materially from these statements for a variety of reasons, including, without limitation, our ability to keep pace with the rapid industry, technological and market trends and changes in the markets in which we operate; our ability to gain market acceptance for our products and services; our ability to maintain our customer, partner, supplier and contract manufacturer relationships on favorable terms and conditions; global political, macroeconomic and market conditions, including inflation, fluctuating interest rates, changing tariffs and trade policies and the related uncertainty thereof, regulations, monetary policy shifts, economic downturn and recession risks, and foreign exchange volatility and the resulting impact on demand for our products; the impact of new or ongoing geopolitical conflicts and sanctions; adoption or changes to laws, regulations standards or policies affecting our operations, products, services, the storage industry, or AI usage; material cybersecurity and other security breaches; the impact of supply chain disruptions on our business operations, financial performance and results of operations; changes and related uncertainty in U.S. government spending or policy; changes in overall technology spending by our customers; revenue seasonality; changes in laws or regulations, including those relating to privacy, data protection and information security; the timing of orders and their fulfilment; and our ability to manage our gross profit margins, including managing component costs. These and other equally important factors are described in reports and documents we file from time to time with the Securities and Exchange Commission, including the factors described under the sections titled "Risk Factors" in our most recently filed annual report on Form 10-K and quarterly report on Form 10-Q. We disclaim any obligation to update information contained in this press release whether as a result of new information, future events, or otherwise.

NetApp, the NetApp logo, and the marks listed at http://www.netapp.com/TM are trademarks of NetApp, Inc. All other marks are the property of their respective owners.

Footnotes

¹All-flash array annualized net revenue run rate is determined by products and services revenue for the current quarter, multiplied by 4.

²Refer to "NetApp Usage of Non-GAAP Financial Information" below for explanations of consolidated non-GAAP gross profit, non-GAAP operating profit, non-GAAP gross margins, non-GAAP operating margins, non-GAAP net income, non-GAAP net income per share, free cash flow, and billings.

³GAAP net income per share and non-GAAP net income per share are calculated using the diluted number of shares.

NetApp Usage of Non-GAAP Financial Information

To supplement NetApp's condensed consolidated financial statement information presented in accordance with generally accepted accounting principles in the United States (GAAP), NetApp provides investors with certain non-GAAP measures, including, but not limited to, historical non-GAAP gross profit, non-GAAP operating profit, historical non-GAAP gross margins, non-GAAP operating margins, non-GAAP operating results, non-GAAP net income, non-GAAP effective tax rate, free cash flow, billings, and historical and projected non-GAAP earnings per diluted share.

In prior periods, NetApp presented the hardware and software components of our GAAP product revenues to illustrate the significance and value of the Company's software. Because our revenue recognition policy under GAAP defines a configured storage system, inclusive of the operating system software essential to its functionality, as a single performance obligation, hardware and software components of our product revenues are considered non-GAAP measures.

Effective in fiscal year 2025, NetApp no longer presents the non-GAAP hardware and software components of our product revenues, as management no longer considers them to be key financial measures. The Company's current strategy is expected to deliver investor value through growth in total revenues, including product revenues, while maintaining operational discipline to drive earnings leverage. While software continues to be the primary value driver of our products, NetApp is primarily focused on driving growth in total product revenues, through the sale of configured storage systems comprised of both hardware and software, with less focus on the pricing of each component.

Additionally, the Company is considering potential opportunities to simplify pricing for certain products in the future, which may eliminate the existence of separate prices for hardware and software components and/or impact our ability to allocate between them.

NetApp believes that the presentation of its non-GAAP measures, when shown in conjunction with the corresponding GAAP measures, provides useful information to investors and management regarding financial and business trends relating to its financial condition and results of operations. NetApp's management uses non-GAAP measures in making operating decisions because it believes that the measurements provide meaningful supplemental information regarding NetApp's ongoing operational performance.

NetApp believes that the presentation of non-GAAP gross profit, non-GAAP operating profit, non-GAAP gross margins, non-GAAP operating margins, non-GAAP effective tax rate, non-GAAP net income, and non-GAAP earnings per share data, provides investors with supplemental metrics that assist in understanding current results and future prospects, earnings and profitability that are complementary to GAAP metrics. Each of these non-GAAP metrics is defined as the applicable GAAP metric adjusted to exclude the items defined in A through I below, as applicable, while our non-GAAP effective tax rate and non-GAAP net income also reflect a non-GAAP tax provision, as described in item J below, instead of our GAAP tax provision. Non-GAAP net income per share is computed as non-GAAP net income divided by the diluted number of shares for the applicable period.

NetApp believes that the presentation of free cash flow, which it defines as the net cash provided by operating activities less cash used to acquire property and equipment, to be a liquidity measure that provides useful information to management and investors because it reflects cash that can be used to, among other things, invest in its business, make strategic acquisitions, repurchase common stock, and pay dividends on its common stock. As free cash flow is not a measure of liquidity calculated in accordance with GAAP, free cash flow should be considered in addition to, but not as a substitute for, the analysis provided in the statement of cash flows.

NetApp approximates billings by adding net revenues as reported on our Condensed Consolidated Statements of Operations for the period to the change in total deferred revenue and financed unearned services revenue as reported on our Condensed Consolidated Statements of Cash Flows for the same period. Billings is a performance measure that NetApp believes provides useful information to management and investors because it approximates the amounts under purchase orders received by us during a given period that have been billed.

Non-GAAP financial measures are used to: (1) measure company performance against historical results, (2) facilitate comparisons to our competitors' operating results and (3) allow greater transparency with respect to information used by management in financial and operational decision making.

NetApp excludes the following items from its non-GAAP measures when applicable:

A. Amortization of intangible assets. NetApp records amortization of intangible assets that were acquired in connection with its business combinations. The amortization of intangible assets varies depending on the level of acquisition activity. Management finds it useful to exclude these charges to assess the appropriate level of various operating expenses to assist in budgeting, planning and forecasting future periods and in measuring operational performance.

B. Stock-based compensation expenses. NetApp excludes stock-based compensation expenses from its non-GAAP measures primarily because the amount can fluctuate based on variables unrelated to the performance of the underlying business. While management views stock-based compensation as a key element of our employee retention and long-term incentives, we do not view it as an expense to be used in evaluating operational performance in any given period.

C. Litigation settlements. NetApp may periodically incur charges or benefits related to litigation settlements. NetApp excludes these charges and benefits, when significant, because it does not believe they are reflective of ongoing business and operating results.

D. Acquisition-related expenses. NetApp excludes acquisition-related expenses, including (a) due diligence, legal and other one-time integration charges and (b) write down of assets acquired that NetApp does not intend to use in its ongoing business, from its non-GAAP measures, primarily because they are not related to our ongoing business or cost base and, therefore, are less useful for future planning and forecasting.

E. Restructuring charges. These charges consist of restructuring charges that are incurred based on the particular facts and circumstances of restructuring decisions, including employment and contractual settlement terms, and other related charges, and can vary in size and frequency. We therefore exclude them in our assessment of operational performance.

F. Asset impairments. These are non-cash charges to write down assets when there is an indication that the asset has become impaired. Management finds it useful to exclude these non-cash charges due to the unpredictability of these events in its assessment of operational performance.

G. Gains/losses on the sale or derecognition of assets. These are gains/losses from the sale of our properties and other transactions in which we transfer and/or lose control of assets to a third party. This is inclusive of third-party advisory, legal and other costs that result directly from and are essential to a sale transaction and that would not have been incurred had the decision to sell not been made. Management believes that these transactions do not reflect the results of our underlying, ongoing business and, therefore, are less useful for future planning and forecasting.

H. Gains/losses on the sale of investments in equity securities. These are gains/losses from the sale of our investment in certain equity securities. Typically, such investments are sold as a result of a change in control of the underlying businesses. Management believes that these transactions do not reflect the results of our underlying, ongoing business and, therefore, are less useful for future planning and forecasting.

I. Debt extinguishment costs. NetApp excludes certain non-recurring expenses incurred as a result of the early extinguishment of debt. Management believes such non-recurring costs do not reflect the results of its underlying, ongoing business and, therefore, are less useful for future planning and forecasting.

J. Income tax adjustments. NetApp's non-GAAP tax provision is based upon a projected annual non-GAAP effective tax rate for the first three quarters of the fiscal year and an actual non-GAAP tax provision for the fourth quarter of the fiscal year. The non-GAAP tax provision also excludes, when applicable, (a) tax charges or benefits in the current period that relate to one or more prior fiscal periods that are a result of events such as changes in tax legislation, authoritative guidance, income tax audit settlements, statute lapses and/or court decisions, (b) tax charges or benefits that are attributable to unusual or non-recurring book and/or tax accounting method changes, (c) tax charges or benefits that are a result of a non-routine foreign cash repatriation, (d) tax charges or benefits that are a result of infrequent restructuring of the Company's tax structure, (e) tax charges or benefits that are a result of a change in valuation allowance, and (f) tax charges or benefits resulting from the integration of intellectual property from acquisitions. Management believes that the use of non-GAAP tax provisions provides a more meaningful measure of the Company's operational performance.

Non-GAAP measures are not in accordance with, or an alternative for, measures prepared in accordance with GAAP, and may be different from non-GAAP measures used by other companies. In addition, non-GAAP measures are not based on any comprehensive set of accounting rules or principles. NetApp believes that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with the Company's results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate the Company's results of operations in conjunction with the corresponding GAAP measures. NetApp management compensates for these limitations by analyzing current and projected results on a GAAP basis as well as a non-GAAP basis. The presentation of non-GAAP financial information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with generally accepted accounting principles in the United States. The non-GAAP financial measures are meant to supplement, and be viewed in conjunction with, GAAP financial measures. A detailed reconciliation of our non-GAAP to GAAP results can be found herein.

Constant Currency

In periods in which the impacts of foreign currency exchange rate changes are significant, NetApp presents certain constant currency growth rates or quantifies the impact of foreign currency exchange rate changes on year-over-year fluctuations, including for net revenues, billings, and earnings. This constant currency information assumes the same foreign currency exchange rates that were in effect for the comparable prior-year period were used in translation of the current period results.

About NetApp

NetApp is the intelligent data infrastructure company, combining unified data storage, integrated data, operational and workload services to turn a world of disruption into opportunity for every customer. NetApp creates silo-free infrastructure, harnessing observability and AI to enable the industry's best data management. As the only enterprise-grade storage service natively embedded in the world's biggest clouds, our data storage delivers seamless flexibility. In addition, our data services create a data advantage through superior cyber resilience, governance, and application agility. Our operational and workload services provide continuous optimization of performance and efficiency for infrastructure and workloads through observability and AI. No matter the data type, workload, or environment, with NetApp you can transform your data infrastructure to realize your business possibilities. Learn more at www.netapp.com or follow us on X, LinkedIn, Facebook, and Instagram.


NETAPP, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In millions) (Unaudited)

	April 25, 2025		April 26, 2024

ASSETS

Current assets:
Cash, cash equivalents and investments	$	3,846	$	3,252
Accounts receivable		1,246		1,007
Inventories		186		186
Other current assets		573		452
Total current assets		5,851		4,897

Property and equipment, net		563		604
Goodwill and purchased intangible assets, net		2,766		2,883
Other non-current assets		1,643		1,503
Total assets	$	10,823	$	9,887

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
Accounts payable	$	511	$	517
Accrued expenses		1,122		1,013
Current portion of long-term debt		750		400
Short-term deferred revenue and financed unearned services revenue		2,279		2,176
Total current liabilities		4,662		4,106
Long-term debt		2,485		1,992
Other long-term liabilities		379		585
Long-term deferred revenue and financed unearned services revenue		2,257		2,058
Total liabilities		9,783		8,741

Stockholders' equity		1,040		1,146
Total liabilities and stockholders' equity	$	10,823	$	9,887


NETAPP, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except per share amounts) (Unaudited)

	Three Months Ended				Year Ended
	April 25, 2025		April 26, 2024		April 25, 2025		April 26, 2024

Revenues:
Product	$	845	$	806	$	3,040	$	2,849
Services		887		862		3,532		3,419
Net revenues		1,732		1,668		6,572		6,268

Cost of revenues:
Cost of product		378		314		1,284		1,137
Cost of services		161		178		675		698
Total cost of revenues		539		492		1,959		1,835
Gross profit		1,193		1,176		4,613		4,433

Operating expenses:
Sales and marketing		458		460		1,865		1,828
Research and development		256		271		1,012		1,029
General and administrative		85		78		311		308
Restructuring charges		45		—		83		44
Acquisition-related expense		1		1		5		10
Total operating expenses		845		810		3,276		3,219

Income from operations		348		366		1,337		1,214

Other income, net		6		14		46		49

Income before income taxes		354		380		1,383		1,263

Provision for income taxes		14		89		197		277

Net income	$	340	$	291	$	1,186	$	986

Net income per share:
Basic	$	1.67	$	1.41	$	5.81	$	4.74

Diluted	$	1.65	$	1.37	$	5.67	$	4.63

Shares used in net income per share calculations:
Basic		203		206		204		208

Diluted		206		212		209		213


NETAPP, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) (Unaudited)

	Three Months Ended						Year Ended
	April 25, 2025			April 26, 2024			April 25, 2025			April 26, 2024
Cash flows from operating activities:
Net income	$	340		$	291		$	1,186		$	986
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		53			64			243			255
Non-cash operating lease cost		10			11			41			45
Stock-based compensation		95			88			386			357
Deferred income taxes		10			55			(100	)		53
Other items, net		25			(17	)		-			(13	)
Changes in assets and liabilities, net of acquisitions of businesses:
Accounts receivable		(323	)		(228	)		(219	)		(33	)
Inventories		81			(55	)		(1	)		(18	)
Accounts payable		69			120			(8	)		123
Accrued expenses		156			129			62			113
Deferred revenue and financed unearned services revenue		300			146			208			(14	)
Long-term taxes payable		(123	)		1			(207	)		(106	)
Changes in other operating assets and liabilities, net		(18	)		8			(85	)		(63	)
Net cash provided by operating activities		675			613			1,506			1,685
Cash flows from investing activities:
(Purchases) redemptions of investments, net		(345	)		(251	)		245			(580	)
Purchases of property and equipment		(35	)		(46	)		(168	)		(155	)
Other investing activities, net		67			—			70			—
Net cash (used in) provided by investing activities		(313	)		(297	)		147			(735	)
Cash flows from financing activities:
Proceeds from issuance of common stock under employee stock award plans		—			—			108			100
Payments for taxes related to net share settlement of stock awards		(31	)		(19	)		(199	)		(127	)
Repurchase of common stock		(250	)		(100	)		(1,150	)		(900	)
Issuances of debt, net of issuance costs		1,240			—			1,240			—
Repayments and extinguishment of debt		—			—			(400	)		—
Dividends paid		(105	)		(104	)		(424	)		(416	)
Other financing activities, net		(3	)		(1	)		(3	)		(1	)
Net cash provided by (used in) financing activities		851			(224	)		(828	)		(1,344	)

Effect of exchange rate changes on cash, cash equivalents and restricted cash		18			(9	)		15			(19	)

Net change in cash, cash equivalents and restricted cash		1,231			83			840			(413	)
Cash, cash equivalents and restricted cash:
Beginning of period		1,518			1,826			1,909			2,322
End of period	$	2,749		$	1,909		$	2,749		$	1,909


NETAPP, INC. SUPPLEMENTAL DATA (In millions except net income per share, percentages, DSO, DPO and Inventory Turns) (Unaudited)

Revenues by Segment
	Q4'FY25			Q3'FY25			Q4'FY24			FY2025			FY2024
Product	$	845		$	758		$	806		$	3,040		$	2,849
Support		625			621			623			2,512			2,488
Professional and Other Services		98			88			87			355			320
Hybrid Cloud Segment Net Revenues		1,568			1,467			1,516			5,907			5,657
Public Cloud Segment Net Revenues		164			174			152			665			611
Net Revenues	$	1,732		$	1,641		$	1,668		$	6,572		$	6,268

Gross Profit by Segment
	Q4'FY25			Q3'FY25			Q4'FY24			FY2025			FY2024
Product	$	468		$	430		$	494		$	1,762		$	1,718
Support		577			573			574			2,315			2,293
Professional and Other Services		28			25			20			94			77
Hybrid Cloud Segment Gross Profit		1,073			1,028			1,088			4,171			4,088
Public Cloud Segment Gross Profit		130			133			104			500			408
Total Segments Gross Profit		1,203			1,161			1,192			4,671			4,496

Amortization of Intangible Assets		(3	)		(8	)		(8	)		(28	)		(34	)
Stock-based Compensation		(7	)		(8	)		(8	)		(30	)		(29	)
Unallocated Cost of Revenues		(10	)		(16	)		(16	)		(58	)		(63	)

Gross Profit	$	1,193		$	1,145		$	1,176		$	4,613		$	4,433

Gross Margin by Segment
	Q4'FY25			Q3'FY25			Q4'FY24			FY2025			FY2024
Product		55.4	%		56.7	%		61.3	%		58.0	%		60.3	%
Support		92.3	%		92.3	%		92.1	%		92.2	%		92.2	%
Professional and Other Services		28.6	%		28.4	%		23.0	%		26.5	%		24.1	%
Hybrid Cloud Segment Gross Margin		68.4	%		70.1	%		71.8	%		70.6	%		72.3	%
Public Cloud Segment Gross Margin		79.3	%		76.4	%		68.4	%		75.2	%		66.8	%

Geographic Mix
	% of Q4 FY'25			% of Q3 FY'25			% of Q4 FY'24			% of FY 2025			% of FY 2024
	Revenue			Revenue			Revenue			Revenue			Revenue
Americas		51	%		51	%		51	%		51	%		51	%
Americas Commercial		42	%		41	%		41	%		40	%		40	%
U.S. Public Sector		9	%		10	%		10	%		11	%		11	%
EMEA		34	%		34	%		34	%		34	%		34	%
Asia Pacific		15	%		15	%		15	%		15	%		15	%

Pathways Mix
	% of Q4 FY'25			% of Q3 FY'25			% of Q4 FY'24			% of FY 2025			% of FY 2024
	Revenue			Revenue			Revenue			Revenue			Revenue
Direct		22	%		21	%		24	%		22	%		24	%
Indirect		78	%		79	%		76	%		78	%		76	%

Non-GAAP Income from Operations, Income before Income Taxes & Effective Tax Rate

	Q4'FY25			Q3'FY25			Q4'FY24			FY2025			FY2024
Non-GAAP Income from Operations	$	496		$	492		$	469		$	1,862		$	1,682
% of Net Revenues		28.6	%		30.0	%		28.1	%		28.3	%		26.8	%
Non-GAAP Income before Income Taxes	$	492		$	500		$	483		$	1,901		$	1,726
Non-GAAP Effective Tax Rate		19.3	%		20.6	%		20.9	%		20.2	%		20.3	%

Non-GAAP Net Income
	Q4'FY25			Q3'FY25			Q4'FY24			FY2025			FY2024
Non-GAAP Net Income	$	397		$	397		$	382		$	1,516		$	1,375
Non-GAAP Weighted Average Common Shares Outstanding, Diluted		206			208			212			209			213
Non-GAAP Net Income per Share, Diluted	$	1.93		$	1.91		$	1.80		$	7.25		$	6.46

Select Balance Sheet Items
	Q4'FY25			Q3'FY25			Q4'FY24
Deferred Revenue and Financed Unearned Services Revenue	$	4,536		$	4,122		$	4,234
DSO (days)		65			50			55
DPO (days)		86			80			96
Inventory Turns		12			7			11

Days sales outstanding (DSO) is defined as accounts receivable divided by net revenues, multiplied by the number of days in the quarter.
Days payables outstanding (DPO) is defined as accounts payable divided by cost of revenues, multiplied by the number of days in the quarter.
Inventory turns is defined as annualized cost of revenues divided by net inventories.

Select Cash Flow Statement Items
	Q4'FY25			Q3'FY25			Q4'FY24			FY2025			FY2024
Net Cash Provided by Operating Activities	$	675		$	385		$	613		$	1,506		$	1,685
Purchases of Property and Equipment	$	35		$	47		$	46		$	168		$	155
Free Cash Flow	$	640		$	338		$	567		$	1,338		$	1,530
Free Cash Flow as % of Net Revenues		37.0	%		20.6	%		34.0	%		20.4	%		24.4	%

Free cash flow is a non-GAAP measure and is defined as net cash provided by operating activities less purchases of property and equipment.
Some items may not add or recalculate due to rounding.


NETAPP, INC. RECONCILIATION OF GAAP TO NON-GAAP INCOME STATEMENT INFORMATION (In millions, except net income per share amounts)

	Q4'FY25			Q3'FY25			Q4'FY24			FY2025			FY2024
NET INCOME	$	340		$	299		$	291		$	1,186		$	986
Adjustments:
Amortization of intangible assets		6			13			14			47			57
Stock-based compensation		95			103			88			386			357
Litigation settlements		—			—			—			—			(5	)
Restructuring charges		45			9			—			83			44
Acquisition-related expense		1			2			1			5			10
Gains/losses on the sale or derecognition of assets		1			3			—			7			—
Gain on sale of equity investment		(10	)		—			—			(10	)		—
Income tax effects		(42	)		(32	)		(12	)		(149	)		(74	)
Resolution of income tax matters		(39	)		—			—			(39	)		—
NON-GAAP NET INCOME	$	397		$	397		$	382		$	1,516		$	1,375

COST OF REVENUES	$	539		$	496		$	492		$	1,959		$	1,835
Adjustments:
Amortization of intangible assets		(3	)		(8	)		(8	)		(28	)		(34	)
Stock-based compensation		(7	)		(8	)		(8	)		(30	)		(29	)
NON-GAAP COST OF REVENUES	$	529		$	480		$	476		$	1,901		$	1,772

COST OF PRODUCT REVENUES	$	378		$	330		$	314		$	1,284		$	1,137
Adjustments:
Stock-based compensation		(1	)		(2	)		(2	)		(6	)		(6	)
NON-GAAP COST OF PRODUCT REVENUES	$	377		$	328		$	312		$	1,278		$	1,131

COST OF SERVICES REVENUES	$	161		$	166		$	178		$	675		$	698
Adjustments:
Amortization of intangible assets		(3	)		(8	)		(8	)		(28	)		(34	)
Stock-based compensation		(6	)		(6	)		(6	)		(24	)		(23	)
NON-GAAP COST OF SERVICES REVENUES	$	152		$	152		$	164		$	623		$	641

GROSS PROFIT	$	1,193		$	1,145		$	1,176		$	4,613		$	4,433
Adjustments:
Amortization of intangible assets		3			8			8			28			34
Stock-based compensation		7			8			8			30			29
NON-GAAP GROSS PROFIT	$	1,203		$	1,161		$	1,192		$	4,671		$	4,496


NETAPP, INC. RECONCILIATION OF GAAP TO NON-GAAP INCOME STATEMENT INFORMATION (In millions, except net income per share amounts)

	Q4'FY25			Q3'FY25			Q4'FY24			FY2025			FY2024
SALES AND MARKETING EXPENSES	$	458		$	451		$	460		$	1,865		$	1,828
Adjustments:
Amortization of intangible assets		(3	)		(5	)		(6	)		(19	)		(23	)
Stock-based compensation		(40	)		(44	)		(34	)		(162	)		(143	)
NON-GAAP SALES AND MARKETING EXPENSES	$	415		$	402		$	420		$	1,684		$	1,662

RESEARCH AND DEVELOPMENT EXPENSES	$	256		$	247		$	271		$	1,012		$	1,029
Adjustments:
Stock-based compensation		(31	)		(36	)		(33	)		(135	)		(132	)
NON-GAAP RESEARCH AND DEVELOPMENT EXPENSES	$	225		$	211		$	238		$	877		$	897

GENERAL AND ADMINISTRATIVE EXPENSES	$	85		$	74		$	78		$	311		$	308
Adjustments:
Stock-based compensation		(17	)		(15	)		(13	)		(59	)		(53	)
Gains/losses on the sale or derecognition of assets		(1	)		(3	)		—			(4	)		—
NON-GAAP GENERAL AND ADMINISTRATIVE EXPENSES	$	67

NetApp Reports Record Results for Fourth Quarter and Fiscal Year 2025