NetApp reported record first-quarter fiscal 2027 net revenue of $2.03 billion, increasing 30% from $1.56 billion in the prior-year period. Hybrid Cloud revenue increased 30% to $1.82 billion, while Public Cloud revenue rose 28% to a record $206 million. Billings increased 36% to $2.06 billion.
All-flash array revenue reached a record $1.3 billion, up 47% year over year. NetApp reported GAAP net income of $375 million, up 61%, with diluted EPS increasing 63% to $1.88. Non-GAAP net income increased 64% to $515 million, while non-GAAP diluted EPS climbed 66% to a record $2.58.
GAAP operating margin was 23.9%, while non-GAAP operating margin reached 31.9%. Free cash flow was $401 million.
NetApp also acquired DataPelago, an AI data infrastructure company, as part of its strategy to enable computing closer to where enterprise data is created and stored. Other recent initiatives include expanded AI collaborations with Cisco, SK Telecom, Tata Consultancy Services and others.
For the second quarter, NetApp expects revenue of $2.025 billion to $2.175 billion and non-GAAP diluted EPS of $2.54 to $2.64.
The company significantly raised its full-year fiscal 2027 outlook and now expects revenue of $7.975 billion to $8.225 billion and non-GAAP diluted EPS of $9.73 to $10.03.
KEY QUOTE:
“NetApp delivered a record-setting start to the year, exceeding guidance on every metric and achieving our strongest first quarter ever. Our momentum reflects not only the trust of existing customers but also our success in winning new ones, as organizations choose the NetApp Platform to power their AI and hybrid multi-cloud initiatives. Through continued innovation and strategic investments, we are enabling customers to address their most critical needs and creating lasting value for all stakeholders.”
George Kurian, Chief Executive Officer of NetApp
