NetApp Q1 FY2027: record $2.03 billion revenue, up 30.0%, guidance raised
NetApp opened fiscal 2027 with its strongest first quarter ever: revenue of $2.03 billion, up 30.0%, and non-GAAP EPS of $2.58. GAAP EPS of $1.88 was 63.5% higher than a year ago. The read-through is simple — the growth came from product and all-flash hardware, not from accounting. The caveats are a guided gross-margin step-down to 66.0%–67.0% and free cash flow that fell 35.3% year-over-year.
1 · Expected vs. Actual
Free preview belowGAAP EPS of $1.88 rose 63.5% from $1.15, and non-GAAP EPS of $2.58 rose 66.5% from $1.55. The $0.70 gap between the two is mostly stock-based compensation ($0.49 per share) and restructuring charges ($0.28), which management asks you to set aside; GAAP net income was $375 million, up 61.0%. GAAP operating margin of 23.9% versus 31.9% non-GAAP shows how much of the profit story depends on which column you read.
Revenue rose 30.0% year-over-year to $2.03 billion from $1.56 billion, with product revenue of $987 million up 50.9% and services revenue of $1.04 billion up 14.7%. All-flash array revenue of $1.31 billion rose 47.0% and billings of $2.06 billion rose 36.0%, so this is broad-based demand rather than one lumpy order. Hybrid Cloud brought in $1.82 billion of the total and Public Cloud $206 million.
For the current quarter NetApp guides revenue to $2.025–$2.175 billion, a $2.10 billion midpoint, with GAAP gross margin of 66.0%–67.0% and GAAP EPS of $1.97–$2.07. For the full fiscal year it points to $7.975–$8.225 billion of revenue, GAAP EPS of $7.35–$7.65 and non-GAAP EPS of $9.73–$10.03. The press release calls the full-year raise significant, but the $2.15 billion next-quarter consensus revenue estimate sits above the guided midpoint.
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Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-09-17
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