Slide 1: Q1 FY26 Earnings Results
Q1 FY26 EARNINGS RESULTS © 2025 NetApp, Inc. All rights reserved.
Slide 2: Safe harbor
Safe harbor • This presentation contains forward-looking statements and projections about our strategy, products and services, shareholder returns, and our future results, performance or achievements, financial and otherwise. These statements and projections reflect management's current expectations
Slide 3: NetApp is the Intelligent Data Infrastructure Company
NetApp is the INTELLIGENT DATA INFRASTRUCTURE COMPANY 3 © 2025 NetApp, Inc. All rights reserved.
Slide 4: Across several eras, NetApp has led in data infrastructure innovation
Across several eras in the age of data, NetApp has led in data infrastructure innovation Adoption Complexity Acceleration Simplification Data Silos & Hybrid Hybrid Intelligence Unification Cloud Multiclouds NetApp delivers silo-free infrastructure, then harnesses observability and AI to enable NetAp
Slide 5: Intelligent Data Infrastructure
GENT DATA INFRASTRU TELLI CTU RE IN SECURITY SUSTAINABILITY EM INTEGRATIONS ECOSYST Infrastructure Data & AI & Workload Services SAVINGS Services SCALABILITY Public Use Case Clouds Solutions NetApp STaaS Intelligent Services SIMPLICITY SMARTS Unified Data Solutions Industry Solutions Storage Storage
Slide 6: With Intelligent Data Infrastructure, you can rise to every moment
BE THE BE THE BE THE SILO BUDGET SUSTAINABILITY BUSTER HERO CHAMPION Deliver simplicity by managing Make your on-premises and cloud Power more sustainable complex workloads and infrastructure spend go further operations with energy-efficient eliminating infrastructure silos technologies, tiering, an
Slide 7: Competitively positioned to drive growth in key markets
Competitively positioned to drive growth in key markets Flash Block Cloud AI + AFF Series ASA Series Optimized The right product Only natively Large portion of the performance and and strategy to integrated player, world’s unstructured design across all disrupt the mature addressing a broad enterpri
Slide 8: ONTAP: Increase productivity and minimize risk with unified simplicity at scale
Increase productivity and minimize risk with unified simplicity at scale High-performance AI/ML/modern Dev/test or Virtual machines Databases Kubernetes Cloud storage file data lakes secondary ONLY NETAPP Comprehensive data management software delivering automation, efficiency, ONTAP ONTAP STORAGE S
Slide 9: ONTAP: Flexible unified storage for any app, any data, anywhere
Flexible unified storage for any app, any data, anywhere NetApp AFF Any unstructured file or object SMB NFS S3 workload Any block NVMe/FC NVMe/TCP workload FCP iSCSI Comprehensive data management software delivering automation, efficiency, ONTAP data protection, and security capabilities for file, b
Slide 10: Consume your data infrastructure on your terms
Consume your data infrastructure on your terms Ultimate flexibility, guaranteed As-A-Service Integrated Tech Refresh Traditional Purchase Public Cloud Consumption NetApp Keystone • Always available and • Choose from the three Storage Lifecycle Program • Procure services, not systems unchanged larges
Slide 11: Peace of mind, guaranteed
Peace of mind, guaranteed Continually evolve your storage environment with confidence Ransomware 6 Nines (99.9999%) Predictable Media Replacement Storage Efficiency Recovery Data Availability Support Pricing Assurance Guarantee Guarantee Guarantee OPTIONAL PROGRAM1 INCLUDED w/ ASA2 INCLUDED w/ Suppo
Slide 12: Unified control across your hybrid multicloud
Unified control across your hybrid multicloud NetApp BlueXP Unified control of storage and services for all your data wherever it lives Powerful AIOps drives operational simplicity Flexible consumption of resources unlocks control, investment protection, and ROI Integrated services maximize data pro
Slide 13: It's always ONTAP, delivered how you need it, where you need it
It's always ONTAP, delivered how you need it, where you need it On-Premises/ Amazon FSx Google Cloud NetApp Cloud Azure NetApp Files Hybrid Cloud for NetApp ONTAP NetApp Volumes Volumes ONTAP The only common storage software provided as on-premises enterprise storage and as a native managed cloud st
Slide 14: NetApp makes data infrastructure intelligent to turn a world of disruption into opportunities
NETAPP MAKES DATA INFRASTRUCTURE INTELLIGENT TO TURN A WORLD OF DISRUPTION INTO OPPORTUNITIES FOR EVERY CUSTOMER 14 © 2025 NetApp, Inc. All rights reserved.
Slide 15: Q1 FY26 highlights
Achieved the #1 share position in the All-Flash market for CY Q1 20251 Public Cloud Services gross margin 2 long-term target range raised to 80% - 85% Record Q1 cash flow from operations and free cash flow2 of $673M and $620M, respectively Q1 FY26 highlights Introduced the AIPod Mini with Intel to s
Slide 16: Q1 FY26 summary
Q1 FY26 summary Q1 guidance Q1 actual (as of May 29, 2025) Revenue $1.455B – $1.605B $1.56B +1.2% y/y Billings1 $1.51B +4.3% y/y Gross margin1 71% – 72% 71.1% -110 bps y/y Operating margin1 25% – 26% 25.7% -20 bps y/y Earnings per share1 $1.48 – $1.58 $1.55 -0.6% y/y FCF margin1 39.8% Remaining perf
Slide 17: Revenues
Revenues All Flash & Public Cloud Services compose 68% of total Q1 FY26 revenue 1% Y/Y $1.7B $1.7B $1.7B $1.6B $1.6B $1.6B $1.5B $1.6B $1.4B Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Other Hybrid Cloud1 All Flash Public Cloud Services 1 Other Hybrid Cloud includes Hybri
Slide 18: Billings
Billings $2.0B $1.8B 4% Y/Y $1.7B $1.7B $1.6B $1.5B $1.5B $1.4B $1.3B Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Billings 18 © 2025 NetApp, Inc. All rights reserved. Billings is a Non-GAAP measure. Refer to appendix for additional details and a reconciliation between GAA
Slide 19: Non-GAAP gross margin
Non-GAAP gross margin $1.2B $1.2B $1.2B $1.2B $1.2B $1.1B $1.1B $1.1B $1.0B 72.0% 72.7% 71.5% 72.2% 72.0% 70.7% 70.7% 71.1% 69.5% Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Hybrid Cloud gross profit Public Cloud gross profit Consolidated gross margin 19 © 2025 NetApp, In
Slide 20: Hybrid Cloud revenue and gross margin
Hybrid Cloud revenue and gross margin $1.6B $1.5B $1.5B $1.5B $1.5B $1.4B $1.4B $1.4B $1.3B 71.1% 72.7% 73.4% 71.8% 72.4% 71.8% 70.1% 68.4% 70.0% Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Revenue Gross margin The company has two segments for financial reporting purposes
Slide 21: Public Cloud revenue and gross margin
Public Cloud revenue and gross margin $174M $168M $164M $159M $161M $154M $154M $151M $152M 79.3% 80.1% 73.8% 76.4% 68.4% 71.1% 66.9% 66.2% 65.6% Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Revenue Gross margin The company has two segments for financial reporting purposes
Slide 22: All flash array annualized revenue run rate
All flash array annualized revenue run rate 6% Y/Y $4.1B $3.8B $3.8B $3.6B $3.6B $3.4B $3.4B $3.2B $2.8B Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 All flash array annualized revenue run rate 22 © 2025 NetApp, Inc. All rights reserved. AFA annualized revenue run rate is
Slide 23: Non-GAAP operating expense
Non-GAAP operating expense $703M $723M $714M $719M $707M $707M $706M $682M $669M 49.1% 46.3% 45.2% 45.3% 43.3% 43.4% 42.5% 40.8% 40.8% Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Non-GAAP operating expense Non-GAAP operating expense as a percent of revenue 23 © 2025 NetAp
Slide 24: Non-GAAP operating profit
Non-GAAP operating profit $485M $492M $496M $469M $475M $419M $399M $401M 30.2% 30.0% $309M 28.1% 28.6% 28.6% 26.8% 25.9% 25.7% 21.6% Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Non-GAAP operating profit Non-GAAP operating margin 24 © 2025 NetApp, Inc. All rights reserved
Slide 25: Non-GAAP earnings per share
Non-GAAP earnings per share $1.94 $1.80 $1.87 $1.91 $1.93 1% Y/Y $1.58 $1.56 $1.55 $1.15 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Non-GAAP earnings per share 25 © 2025 NetApp, Inc. All rights reserved. Refer to appendix for additional details and a reconciliation betwe
Slide 26: Free cash flow
Free cash flow $640M $620M $567M $448M 39.8% $418M 37.0% 34.0% 29.2% 27.9% $338M $300M 19.5% 20.6% $97M $60M 6.2% 3.6% Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Free cash flow Free cash flow as a percent of revenue 26 © 2025 NetApp, Inc. All rights reserved. Refer to ap
Slide 27: Deferred revenue
Deferred revenue 9% Y/Y $4.5B $4.5B $4.2B $4.1B $4.2B $4.2B $4.1B $4.1B $4.0B Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Deferred revenue balance 27 © 2025 NetApp, Inc. All rights reserved.
Slide 28: Q2 Guide
Q2 Guide Q4 FY24 Guidance $1.615B – $1.765B Revenue as of Feb 29, 2024 Gross margin* 70.5% – 71.5% Operating margin* 28% – 29% Q2 FY26 GUIDANCE AS OF AUG 27, 2025 Earnings per share* $1.84 – $1.94 *Gross margin, operating margin and EPS are Non-GAAP numbers. Refer to appendix for additional 28 © 202
Slide 29: FY26 Guide
FY26 Guide Revenue $6.625B – $6.875B Gross margin* 71% – 72% Operating margin* 28.8% – 29.8% REAFFIRMED FY26 GUIDANCE Earnings per share* $7.60 – $7.90 AS OF AUG 27, 2025 Additional modeling points Other income and expense** Approx -$10M Tax rate* 20% – 21% *Gross margin, operating margin, EPS, and
Slide 30: Appendix: Supplementary Tables and GAAP to Non-GAAP Reconciliations & Explanations
Appendix: Supplementary Tables and GAAP to Non- GAAP Reconciliations & Explanations © 2025 NetApp, Inc. All rights reserved.
Slide 31: Supplemental revenue and gross margin data
Supplemental revenue and gross margin data RECONCILIATION OF SEGMENTS GROSS PROFIT TO TOTAL GROSS PROFIT ($ in millions) Q1'FY24 Q2'FY24 Q3'FY24 Q4'FY24 Q1'FY25 Q2'FY25 Q3'FY25 Q4'FY25 Q1'FY26 Revenues by Segment Product $ 590 $ 706 $ 747 $ 806 $ 669 $ 768 $ 758 $ 845 $ 654 Support 611 623 631 623 6
Slide 32: Reconciliation of net revenues to billings (Non-GAAP)
Reconciliation of net revenues to billings (Non-GAAP) RECONCILIATION OF NET REVENUES TO BILLINGS (NON-GAAP) (In millions) Q1'FY24 Q2'FY24 Q3'FY24 Q4'FY24 Q1'FY25 Q2'FY25 Q3'FY25 Q4'FY25 Q1'FY26 Net revenues $ 1,432 $ 1,562 $ 1,606 $ 1,668 $ 1,541 $ 1,658 $ 1,641 $ 1,732 $ 1,559 Change in deferred re
Slide 33: Reconciliation of GAAP to Non-GAAP gross profit and gross margin
Reconciliation of GAAP to Non-GAAP gross profit and gross margin RECONCILIATION OF GAAP TO NON-GAAP GROSS PROFIT AND GROSS MARGIN ($ in millions) Q1'FY24 Q2'FY24 Q3'FY24 Q4'FY24 Q1'FY25 Q2'FY25 Q3'FY25 Q4'FY25 Q1'FY26 NET REVENUES $ 1,432 $ 1,562 $ 1,606 $ 1,668 $ 1,541 $ 1,658 $ 1,641 $ 1,732 $ 1,5
Slide 34: Reconciliation of GAAP to Non-GAAP operating expenses
Reconciliation of GAAP to Non-GAAP operating expenses RECONCILIATION OF GAAP TO NON-GAAP OPERATING EXPENSES ($ in millions) Q1'FY24 Q2'FY24 Q3'FY24 Q4'FY24 Q1'FY25 Q2'FY25 Q3'FY25 Q4'FY25 Q1'FY26 OPERATING EXPENSES $ 818 $ 806 $ 785 $ 810 $ 816 $ 832 $ 783 $ 845 $ 789 Adjustments: Amortization of in
Slide 35: Reconciliation of GAAP to Non-GAAP operating margin
Reconciliation of GAAP to Non-GAAP operating margin RECONCILIATION OF GAAP TO NON-GAAP OPERATING MARGIN ($ in millions) Q1'FY24 Q2'FY24 Q3'FY24 Q4'FY24 Q1'FY25 Q2'FY25 Q3'FY25 Q4'FY25 Q1'FY26 INCOME FROM OPERATIONS $ 178 $ 304 $ 366 $ 366 $ 282 $ 345 $ 362 $ 348 $ 309 Adjustments: Amortization of in
Slide 36: Reconciliation of GAAP to Non-GAAP net income per share
Reconciliation of GAAP to Non-GAAP net income per share RECONCILIATION OF GAAP TO NON-GAAP NET INCOME PER SHARE Q1'FY24 Q2'FY24 Q3'FY24 Q4'FY24 Q1'FY25 Q2'FY25 Q3'FY25 Q4'FY25 Q1'FY26 NET INCOME PER SHARE $ 0.69 $ 1.10 $ 1.48 $ 1.37 $ 1.17 $ 1.42 $ 1.44 $ 1.65 $ 1.15 Adjustments: Amortization of int
Slide 37: Reconciliation of operating cash flow to free cash flow (Non-GAAP)
Reconciliation of net cash provided by (used in) operating activities to free cash flow (Non-GAAP) RECONCILIATION OF NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES TO FREE CASH FLOW (NON-GAAP) (In millions) Q1'FY24 Q2'FY24 Q3'FY24 Q4'FY24 Q1'FY25 Q2'FY25 Q3'FY25 Q4'FY25 Q1'FY26 Net cash provide
Slide 38: Reconciliation of cash and investments to net cash (Non-GAAP)
Reconciliation of cash, cash equivalents and short-term investments to net cash (Non-GAAP) RECONCILIATION OF CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS TO NET CASH (NON-GAAP) (In millions) Q1'FY24 Q2'FY24 Q3'FY24 Q4'FY24 Q1'FY25 Q2'FY25 Q3'FY25 Q4'FY25 Q1'FY26 Cash, cash equivalents and inves
Slide 39: Reconciliation of GAAP guidance to Non-GAAP - second quarter fiscal 2026
Reconciliation of GAAP guidance to Non-GAAP - second quarter fiscal 2026 NETAPP, INC. RECONCILIATION OF GAAP GUIDANCE TO NON-GAAP SECOND QUARTER FISCAL 2026 Second Quarter Fiscal 2026 Gross Margin - GAAP Guidance 69.5% - 70.5% Adjustments: Cost of revenues adjustments 1% Gross Margin - Non-GAAP Guid
Slide 40: Reconciliation of GAAP guidance to Non-GAAP - second quarter fiscal 2026, continued
Reconciliation of GAAP guidance to Non-GAAP - second quarter fiscal 2026, continued NETAPP, INC. RECONCILIATION OF GAAP GUIDANCE TO NON-GAAP SECOND QUARTER FISCAL 2026 Second Quarter Fiscal 2026 GAAP Guidance - Net Income Per Share $1.35 - $1.45 Adjustments of Specific Items to Net Income Per Share
Slide 41: Reconciliation of GAAP guidance to Non-GAAP – fiscal 2026
Reconciliation of GAAP guidance to Non-GAAP – fiscal 2026 NETAPP, INC. RECONCILIATION OF GAAP GUIDANCE TO NON-GAAP FISCAL 2026 Fiscal 2026 Gross Margin - GAAP Guidance 70% - 71% Adjustments: Cost of revenues adjustments 1% Gross Margin - Non-GAAP Guidance 71% - 72% Fiscal 2026 Operating Margin - GAA
Slide 42: Reconciliation of GAAP guidance to Non-GAAP – fiscal 2026, continued
Reconciliation of GAAP guidance to Non-GAAP – fiscal 2026, continued NETAPP, INC. RECONCILIATION OF GAAP GUIDANCE TO NON-GAAP FISCAL 2026 Fiscal 2026 GAAP Guidance - Net Income Per Share $5.72 - $6.02 Adjustments of Specific Items to Net Income Per Share for Fiscal 2026: Amortization of intangible a
Slide 43: Reconciliation of GAAP guidance to Non-GAAP - first quarter fiscal 2026
Reconciliation of GAAP guidance to Non-GAAP - first quarter fiscal 2026 NETAPP, INC. RECONCILIATION OF GAAP GUIDANCE TO NON-GAAP FIRST QUARTER FISCAL 2026 First Quarter Fiscal 2026 Gross Margin - GAAP Guidance 70% - 71% Adjustments: Cost of revenues adjustments 1% Gross Margin - Non-GAAP Guidance 71
Slide 44: Reconciliation of GAAP guidance to Non-GAAP - first quarter fiscal 2026, continued
Reconciliation of GAAP guidance to Non-GAAP - first quarter fiscal 2026, continued NETAPP, INC. RECONCILIATION OF GAAP GUIDANCE TO NON-GAAP FIRST QUARTER FISCAL 2026 First Quarter Fiscal 2026 GAAP Guidance - Net Income Per Share $1.06 - $1.16 Adjustments of Specific Items to Net Income Per Share for
Slide 45: © 2025 NetApp, Inc. All rights reserved.
45 © 2025 NetApp, Inc. All rights reserved.