The significant guidance raise for FY2027 (revenue up ~9% at midpoint vs prior guidance) signals strong demand momentum in AI storage and hybrid cloud. Traders should watch for continued all-flash array growth and public cloud adoption. The stock is likely to re-rate higher given the beat-and-raise pattern. Monitor Q2 execution against the raised bar.
Price Chart
Executive Summary
NetApp reported a record Q1 FY2027 with revenue of $2.025B (+30% YoY) and GAAP EPS of $1.88 (+63% YoY), significantly exceeding its own guidance. The company raised full-year FY2027 revenue guidance to $7.975B-$8.225B (from $7.325B-$7.575B) and GAAP EPS to $7.35-$7.65 (from $6.51-$6.81), driven by 47% all-flash array growth and 28% public cloud growth. This is a strong beat with raised guidance, indicating accelerating momentum in AI and hybrid cloud.
Key Financial Metrics
Key Facts
- Record Q1 FY2027 net revenue of $2.025B, up 30% YoY from $1.559B
- GAAP diluted EPS of $1.88, up 63% YoY from $1.15; non-GAAP EPS of $2.58 (record)
- All-flash array revenue $1.3B (+47% YoY); Public Cloud revenue $206M (+28% YoY)
- Billings of $2.057B, up 36% YoY
- GAAP operating margin of 23.9%; non-GAAP operating margin of 31.9%
- Acquired DataPelago, an AI data infrastructure company
- Raised Q2 FY2027 guidance: revenue $2.025B-$2.175B, GAAP EPS $1.97-$2.07
- Raised full FY2027 guidance: revenue $7.975B-$8.225B, GAAP EPS $7.35-$7.65 (vs prior $6.51-$6.81)
- Operating cash flow of $503M; free cash flow of $401M
- Quarterly dividend maintained at $0.52/share
Financial Impact
Revenue beat prior guidance midpoint by ~11% ($2.025B vs $1.825B); EPS beat prior guidance midpoint by ~34% ($1.88 vs $1.40). Full-year revenue guidance raised by ~$650M at midpoint.
Risk Factors
- Elevated expectations after a strong beat may make future quarters harder to exceed
- Restructuring charges of $56M in Q1 could indicate ongoing cost actions
- Free cash flow declined 35% YoY to $401M due to higher capex and acquisition spend
- Macroeconomic uncertainty could slow enterprise IT spending
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001002047-26-000003 |
| Document: ntap-20260902.htm | 0001002047-26-000003 |
| Document: 0001002047-26-000003-index-headers.html | 0001002047-26-000003 |
| Document: 0001002047-26-000003-index.html | 0001002047-26-000003 |
| Document: 0001002047-26-000003.txt | 0001002047-26-000003 |
| 8-K Data (Synthetic) | 0001002047-26-000003 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 14, 2026 18d ago | Insider Cluster | $188.28 $189.93 | ▲ +0.88% | ▲ +1.34% | $229.93 (+22.12%) |
Sep 2, 2026 29d ago | 8-K | $185.38 $185.59 | ▲ +0.11% | ▲ +0.50% | $229.93 (+24.03%) |
Aug 19, 2026 6w ago | Insider Cluster | $192.71 $192.27 | ▼ −0.23% | ▼ −0.63% | $229.93 (+19.32%) |
Jun 5, 2026 16w ago | Insider Cluster | $170.31 $165.00 | ▼ −3.12% | ▼ −2.82% | $229.93 (+35.01%) |
May 28, 2026 18w ago | 8-K | $174.29 $179.70 | ▲ +3.10% | ▲ +2.83% | $229.93 (+31.92%) |
May 20, 2026 19w ago | Insider Cluster | $123.95 $139.36 | ▲ +12.43% | ▲ +11.99% | $229.93 (+85.50%) |
Mar 3, 2026 30w ago | Court Ruling | $98.29 $99.04 | ▲ +0.77% | ▲ +0.01% | $229.93 (+133.94%) |
Feb 28, 2026 30w ago | Institutional Cluster | $99.64 $98.29 | ▼ −1.36% | ▼ −0.44% | $229.93 (+130.76%) |
US Market Status
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