NetApp, Inc. (NTAP) reported fiscal Q1 2027 revenue of $2.025 billion, a 29.9% increase year-over-year, exceeding analysts’ expectations by 9.9%. Non-GAAP earnings reached $2.58 per share, surpassing the consensus estimate by 21.1%. The quarter saw an approximate $65 million revenue increase from an extra week, predominantly in support and Public Cloud services.
All-flash array revenues surged 46.6% to a record $1.309 billion, while Public Cloud revenues grew 28% to a record $206 million. Together, these segments constituted 75% of total revenues. For FY2027, NetApp raised its revenue guidance to between $7.975 billion and $8.225 billion, indicating an expected 17% year-over-year growth.
Despite strong revenue growth, NetApp’s non-GAAP gross margin declined to 70.6% from 71.1% the previous year, with product gross margin dropping to 54.6%. The company expects a gross margin of 68.1%-69.1% for fiscal 2027, highlighting ongoing pressures from component costs.
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