Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
NetApp delivered a strong fiscal year 2026, with revenue growing 5.6% to $6.24B, operating income surging 25.2% to $1.67B, and operating cash flow jumping 37.3% to $2.07B, reflecting disciplined cost management and expanding margins.
Revenue
$6.24B
+5.59% YoY
EPS (Diluted)
$6.35
+11.99% YoY
Gross Margin
78.5%
+0.5 pts YoY
Operating Income
$1.67B
+25.21% YoY
Source: SEC XBRL
NetApp (NTAP) reported FY2026 revenue of $6.24B, up 5.6% year over year. Operating margin was 26.8%, up 4.2 points from 22.6% a year earlier. Operating cash flow was $2.07B, up 37.3% year over year.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026This filing | 2.43 | 2.31 | Beat +5.1% |
| Mar 2026 | 2.12 | 2.11 | Beat +0.7% |
| Dec 2025 | 2.05 | 1.92 | Beat +6.6% |
| Sep 2025 | 1.55 | 1.57 | Miss -1.2% |
Reported EPS of $2.43 versus the $2.31 analyst consensus — a +5.1% beat for Jun 2026.
Compiled by AI from this SEC filing
NetApp grew total revenue by 5.6% year-over-year to $6.24B in FY2026 (from $5.91B in FY2025), indicating sustained demand for its hybrid cloud and intelligent data infrastructure solutions. This growth was achieved despite a competitive storage market environment.
Source: 10-K Income Statement, Financial Data
Operating income grew 25.2% to $1.67B, far outpacing revenue growth of 5.6%, driving operating margin expansion of approximately 420 basis points to 26.8% from 22.6%. This reflects disciplined cost control, including a 2.1% reduction in R&D expense to $991M, and improved operational efficiency.
Source: 10-K Income Statement, Financial Data
Operating cash flow surged 37.3% to $2.07B, enabling NetApp to return significant capital to shareholders via $950M in share buybacks and $413M in dividends. Long-term debt was also reduced by 23.1% to $2.49B, strengthening the balance sheet.
Source: 10-K Cash Flow Statement & Balance Sheet, Financial Data
Gross margin remained robust at 78.5%, a slight improvement from 78.1% in the prior year, suggesting a favorable shift toward higher-margin software and services revenue and effective management of cost of revenue, which grew only 3.4% versus revenue growth of 5.6%.
Source: 10-K Income Statement, Financial Data
Stockholders' equity improved 29.9% to $1.35B from $1.04B, while total liabilities declined 4.0% to $9.39B. Current liabilities fell sharply by 13.7% to $4.02B, improving the current ratio to 1.44x and signaling improved near-term financial flexibility.
Source: 10-K Balance Sheet, Financial Data
Compiled by AI from this SEC filing · 1 high, 3 medium, 1 low
NetApp carries a debt-to-equity ratio of approximately 6.95x, which remains elevated despite long-term debt declining 23.1% to $2.49B. This level of leverage could constrain financial flexibility in a rising interest rate environment or during periods of revenue softness, and limits the company's ability to absorb unexpected shocks.
Source: 10-K Balance Sheet, Financial Data
Cash and equivalents fell 24.5% to $2.07B from $2.74B in the prior year, largely driven by $2.15B in financing outflows including buybacks and debt repayment. While operating cash flow is strong, a continued drawdown of cash reserves could reduce the company's buffer against economic downturns or investment opportunities.
Source: 10-K Cash Flow Statement & Balance Sheet, Financial Data
R&D expense declined 2.1% to $991M in FY2026, which, while supporting near-term margin expansion, could signal reduced investment in next-generation technologies such as AI-driven storage and cloud-native solutions. In a rapidly evolving data infrastructure market, sustained underinvestment in innovation poses a medium-term competitive risk.
Source: 10-K Income Statement, Financial Data
Investing cash flow swung sharply to -$595M from +$147M in the prior year, a change of over 500%, suggesting significantly higher capital expenditures or acquisition activity. If these investments do not generate expected returns, they could weigh on future profitability and cash generation.
Source: 10-K Cash Flow Statement, Financial Data
NetApp returned approximately $1.36B to shareholders through buybacks ($950M) and dividends ($413M) in FY2026, representing a substantial portion of its $2.07B operating cash flow. While this reflects confidence in the business, it leaves limited retained cash for strategic investments or to weather potential revenue headwinds.
Source: 10-K Cash Flow Statement, Financial Data
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 6.24 $B | 5.91 $B | +5.59% |
Cost of Revenue $B | 2.03 $B | 1.96 $B | +3.42% |
Gross Profit $B | 4.90 $B | 4.61 $B | +6.20% |
Operating Income $B | 1.67 $B | 1.34 $B | +25.21% |
Net Income $B | 1.28 $B | 1.19 $B | +7.59% |
EPS (Basic) $ | 6.41 $ | 5.81 $ | +10.33% |
EPS (Diluted) $ | 6.35 $ | 5.67 $ | +11.99% |
R&D Expense $B | 0.99 $B | 1.01 $B | -2.08% |
Answers draw on this SEC filing and the data on this page
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