NetApp reported fourth quarter results that exceeded Wall Street expectations and issued guidance well above analyst estimates, sending shares up 13.5% in after-hours trading Thursday.
The data infrastructure company posted adjusted earnings per share of $2.43 for the fourth quarter of fiscal 2026, beating the analyst consensus of $2.27 by $0.16. Revenue reached $1.95 billion, surpassing the $1.87 billion estimate and marking a 12% increase YoY. "Fiscal year 2026 was a landmark year for NetApp with record results across revenue, gross profit, operating income, cash flow from operations, and free cash flow," said Chief Executive Officer George Kurian.
The company’s strong performance was driven by record all-flash array net revenue of $1.2 billion, up 18% YoY, and record Public Cloud net revenue of $182 million, up 11% YoY. The Hybrid Cloud segment generated $1.77 billion in revenue, while the Public Cloud segment contributed $182 million.
For the first quarter of fiscal 2027, NetApp expects adjusted EPS of $2.05 to $2.15, with a midpoint of $2.10 that significantly exceeds the analyst consensus of $1.84. The company projects revenue of $1.75 billion to $1.9 billion, with a midpoint of $1.825 billion above the $1.67 billion consensus.
For the full fiscal year 2027, NetApp forecasts adjusted EPS of $8.70 to $9.00, with a midpoint of $8.85 compared to the consensus of $8.53. Revenue guidance of $7.325 billion to $7.575 billion has a midpoint of $7.45 billion, exceeding the $7.2 billion estimate.
NetApp generated record free cash flow of $900 million in the fourth quarter and $1.87 billion for fiscal 2026. The company returned $1.36 billion to stockholders through share repurchases and dividends during the fiscal year.
