Slide 1: Q2 FY26 Earnings Results
Q2 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, including our A I capabilities and initiatives, shareholder returns, and our future results, performance or achievements, financial and otherwise. These stateme nts and proj
Slide 3: Across several eras in the age of data, 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 4: For over 30 years …
For over 30 years … NetApp has been at the forefront of data innovation - helping the world’s leading organizations turn their data into a true driver of transformation. Innovation isn’t just part of our story – it is our story. 4 © 2025 NetApp, Inc. All rights reserved.
Slide 5: Today …
Today … data is everywhere, and security threats, fragmented architecture, shortage of expertise, and operational complexity slow down progress. We help enterprises solve their most pressing data challenges by rethinking the very foundation they run on – delivering data infrastructure that’s optimiz
Slide 6: Our customers rely on NetApp…
Our customers rely on We unify data services … We bring these priorities NetApp… without tearing down what to life … to modernize data already works and connect through the full strength of our infrastructure, transform fragmented environments portfolio, expert services, and cloud strategies, drive
Slide 7: The reality is …
The reality is … …most companies already have data infrastructure - but very few have one that can evolve, scale, and protect. Only NetApp brings together a legacy of innovation, deep customer focus, and unmatched technical depth to help organizations build Intelligent Data Infrastructure. 7 © 2025
Slide 8: NetApp is THE Intelligent Infrastructure company
That’s what enables NetApp to solve what others can’t. This is why NetApp is THE Intelligent Infrastructure company. 8 © 2025 NetApp, Inc. All rights reserved.
Slide 9: Q2 FY26 highlights
• Announced significant innovation, advancing the NetApp Data Platform with enhanced AI workload capabilities, stronger cyber resilience, and deeper collaborations with our hyperscaler partners • Closed approximately 200 AI infrastructure and data lake modernization deals • Grew first party and mark
Slide 10: Q2 FY26 summary
Q2 FY26 summary Q2 guidance Q2 actual (as of Aug 27, 2025) Revenue $1.615B – $1.765B $1.71B +2.8% y/y Billings1 $1.65B +3.8% y/y Gross margin1 70.5% – 71.5% 72.6% +60 bps y/y Operating margin1 28% – 29% 31.1% +250 bps y/y Earnings per share1 $1.84 – $1.94 $2.05 +10.0% y/y FCF margin1 4.6% Remaining
Slide 11: FY26 YTD summary
FY26 YTD summary Q1 Q2 1H Revenue $1.56B $1.71B $3.26B +1.2% y/y +2.8% y/y +2.0% y/y Billings1 $1.51B $1.65B $3.16B +4.3% y/y +3.8% y/y +4.0% y/y Gross margin1 71.1% 72.6% 71.8% -110 bps y/y +60 bps y/y -30 bps y/y Operating margin1 25.7% 31.1% 28.5% -20 bps y/y +250 bps y/y +120 bps y/y Earnings pe
Slide 12: Revenues
Revenues All Flash & Public Cloud compose 70% of total Q2 FY26 revenue 3% Y/Y $1.7B $1.7B $1.7B $1.7B $1.6B $1.6B $1.6B $1.5B $1.6B Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Other Hybrid Cloud1 All Flash Public Cloud 1 Other Hybrid Cloud includes Hybrid Flash and HDD Ar
Slide 13: Billings
Billings $2.0B $1.8B 4% Y/Y $1.7B $1.7B $1.6B $1.6B $1.5B $1.5B $1.4B Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Billings 13 © 2025 NetApp, Inc. All rights reserved. Billings is a Non-GAAP measure. Refer to appendix for additional details and a reconciliation between GAA
Slide 14: Non-GAAP gross margin
Non-GAAP gross margin $1.2B $1.2B $1.2B $1.2B $1.2B $1.1B $1.2B $1.1B $1.1B $1.0B 72.0% 72.7% 71.5% 72.2% 72.0% 72.6% 70.7% 71.1% 69.5% Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Hybrid Cloud gross profit Public Cloud gross profit Consolidated gross margin 14 © 2025 NetA
Slide 15: Hybrid Cloud revenue and gross margin
Hybrid Cloud revenue and gross margin $1.6B $1.5B $1.5B $1.5B $1.5B $1.5B $1.4B $1.4B $1.4B 72.7% 73.4% 71.8% 72.4% 71.8% 71.4% 70.1% 68.4% 70.0% Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Revenue Gross margin The company has two segments for financial reporting purposes
Slide 16: Public Cloud revenue and gross margin
Public Cloud revenue and gross margin $174M $171M $168M $164M $159M $161M $154M $152M $151M 80.1% 83.0% 76.4% 79.3% 71.1% 73.8% 66.2% 65.6% 68.4% Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Revenue Gross margin The company has two segments for financial reporting purposes
Slide 17: All flash array annualized revenue run rate
All flash array annualized revenue run rate 9% Y/Y $4.1B $4.1B $3.8B $3.8B $3.6B $3.6B $3.4B $3.4B $3.2B Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 All flash array annualized revenue run rate 17 © 2025 NetApp, Inc. All rights reserved. AFA annualized revenue run rate is
Slide 18: Non-GAAP operating expense
Non-GAAP operating expense $706M $723M $714M $719M $707M $707M $707M $682M $669M 46.3% 45.2% 45.3% 43.3% 43.4% 42.5% 41.5% 40.8% 40.8% Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Non-GAAP operating expense Non-GAAP operating expense as a percent of revenue 18 © 2025 NetAp
Slide 19: Non-GAAP operating profit
Non-GAAP operating profit $530M $492M $496M $485M $469M $475M $419M $399M $401M 31.1% 30.2% 30.0% 28.1% 28.6% 28.6% 26.8% 25.9% 25.7% Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Non-GAAP operating profit Non-GAAP operating margin 19 © 2025 NetApp, Inc. All rights reserved
Slide 20: Non-GAAP earnings per share
Non-GAAP earnings per share 10% Y/Y $2.05 $1.94 $1.91 $1.93 $1.87 $1.80 $1.58 $1.56 $1.55 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Non-GAAP earnings per share 20 © 2025 NetApp, Inc. All rights reserved. Refer to appendix for additional details and a reconciliation betw
Slide 21: Free cash flow
Free cash flow $640M $620M $567M 39.8% $448M 37.0% 34.0% 27.9% $338M $300M 19.5% 20.6% $97M $60M $78M 6.2% 3.6% 4.6% Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Free cash flow Free cash flow margin 21 © 2025 NetApp, Inc. All rights reserved. Refer to appendix for addition
Slide 22: Deferred revenue
Deferred revenue 8% Y/Y $4.5B $4.5B $4.4B $4.2B $4.2B $4.1B $4.1B $4.0B $4.1B Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Deferred revenue balance 22 © 2025 NetApp, Inc. All rights reserved.
Slide 23: Q3 Guide
Q3 Guide Q4 FY24 Guidance $1.615B – $1.765B Revenue as of Feb 29, 2024 Gross margin* 72.3% – 73.3% Operating margin* 30.5% – 31.5% Q3 FY26 GUIDANCE AS OF NOV 25, 2025 Earnings per share* $2.01 – $2.11 *Gross margin, operating margin and EPS are Non-GAAP numbers. Refer to appendix for additional 23 ©
Slide 24: FY26 Guide
FY26 Guide Revenue $6.625B – $6.875B Gross margin* 71.7% – 72.7% Operating margin* 29.5% – 30.5% UPDATED FY26 GUIDANCE Earnings per share* $7.75 – $8.05 AS OF NOV 25, 2025 Additional modeling points Other income and expenses** Approx -$15M Tax rate* 20.2% – 21.2% *Gross margin, operating margin, EPS
Slide 25: Appendix: Supplementary Tables and GAAP to Non-GAAP Reconciliations & Explanations
Appendix: Supplementary Tables and GAAP to Non- GAAP Reconciliations & Explanations © 2025 NetApp, Inc. All rights reserved.
Slide 26: Supplemental revenue and gross margin data
Supplemental revenue and gross margin data RECONCILIATION OF SEGMENTS GROSS PROFIT TO TOTAL GROSS PROFIT ($ in millions) First Six Months First Six Months Q2'FY24 Q3'FY24 Q4'FY24 Q1'FY25 Q2'FY25 Q3'FY25 Q4'FY25 Q1'FY26 Q2'FY26 of FY2025 of FY2026 Revenues by Segment Product $ 706 $ 747 $ 806 $ 669 $
Slide 27: 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) First Six Months First Six Months Q2'FY24 Q3'FY24 Q4'FY24 Q1'FY25 Q2'FY25 Q3'FY25 Q4'FY25 Q1'FY26 Q2'FY26 of FY2025 of FY2026 Net revenues $ 1,562 $ 1,606 $ 1,668 $ 1,541 $ 1,658
Slide 28: 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) First Six Months First Six Months Q2'FY24 Q3'FY24 Q4'FY24 Q1'FY25 Q2'FY25 Q3'FY25 Q4'FY25 Q1'FY26 Q2'FY26 of FY2025 of FY2026 NET REVENUES $ 1,562 $ 1,606
Slide 29: 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) First Six Months First Six Months Q2'FY24 Q3'FY24 Q4'FY24 Q1'FY25 Q2'FY25 Q3'FY25 Q4'FY25 Q1'FY26 Q2'FY26 of FY2025 of FY2026 OPERATING EXPENSES $ 806 $ 785 $ 810 $ 816 $ 832 $
Slide 30: 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) First Six Months First Six Months Q2'FY24 Q3'FY24 Q4'FY24 Q1'FY25 Q2'FY25 Q3'FY25 Q4'FY25 Q1'FY26 Q2'FY26 of FY2025 of FY2026 INCOME FROM OPERATIONS $ 304 $ 366 $ 366 $ 282 $ 345 $
Slide 31: 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 First Six Months First Six Months Q2'FY24 Q3'FY24 Q4'FY24 Q1'FY25 Q2'FY25 Q3'FY25 Q4'FY25 Q1'FY26 Q2'FY26 of FY2025 of FY2026 NET INCOME PER SHARE $ 1.10 $ 1.48 $ 1.37 $ 1.17 $ 1.42 $ 1.44
Slide 32: Reconciliation of operating cash flow to free cash flow
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) First Six Months First Six Months Q2'FY24 Q3'FY24 Q4'FY24 Q1'FY25 Q2'FY25 Q3'FY25 Q4'FY2
Slide 33: 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) Q2'FY24 Q3'FY24 Q4'FY24 Q1'FY25 Q2'FY25 Q3'FY25 Q4'FY25 Q1'FY26 Q2'FY26 Cash, cash equivalents and inves
Slide 34: Reconciliation of GAAP guidance to Non-GAAP - third quarter fiscal 2026
Reconciliation of GAAP guidance to Non-GAAP - third quarter fiscal 2026 NETAPP, INC. RECONCILIATION OF GAAP GUIDANCE TO NON-GAAP THIRD QUARTER FISCAL 2026 Third Quarter Fiscal 2026 Gross Margin - GAAP Guidance 71.3% - 72.3% Adjustments: Cost of revenues adjustments 1% Gross Margin - Non-GAAP Guidanc
Slide 35: Reconciliation of GAAP guidance to Non-GAAP - third quarter fiscal 2026, continued
Reconciliation of GAAP guidance to Non-GAAP - third quarter fiscal 2026, continued NETAPP, INC. RECONCILIATION OF GAAP GUIDANCE TO NON-GAAP THIRD QUARTER FISCAL 2026 Third Quarter Fiscal 2026 GAAP Guidance - Net Income Per Share $1.52 - $1.62 Adjustments of Specific Items to Net Income Per Share for
Slide 36: 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 70.7% - 71.7% Adjustments: Cost of revenues adjustments 1% Gross Margin - Non-GAAP Guidance 71.7% - 72.7% Fiscal 2026 Operating Marg
Slide 37: 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 $5.82 - $6.12 Adjustments of Specific Items to Net Income Per Share for Fiscal 2026: Amortization of intangible a
Slide 38: 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 39: 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 40: © 2025 NetApp, Inc. All rights reserved.
© 2025 NetApp, Inc. All rights reserved.