Data storage firm NetApp Q2 revenue beats analyst expectations on strong AI demand
Overview
NetApp fiscal Q2 revenue grows 3% yr/yr, beating analyst expectations
Adjusted EPS for fiscal Q2 beats consensus, driven by strong demand for AI solutions
Company returns $353 mln to shareholders via repurchases and dividends
Outlook
NetApp sees Q3 revenue between $1.615 bln and $1.765 bln
NetApp expects Q3 GAAP EPS between $1.52 and $1.62
NetApp anticipates FY26 revenue between $6.625 bln and $6.875 bln
Result Drivers
AI SOLUTIONS DEMAND - Strong demand for AI solutions contributed to revenue growth, according to CEO George Kurian
ALL-FLASH ARRAY GROWTH - All-flash array revenue increased 9% yr/yr to $1 bln, contributing to overall revenue growth
CLOUD STORAGE SERVICES - Public Cloud revenue rose 32% yr/yr, driven by first-party and marketplace storage services
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $1.71 bln | $1.69 bln (16 Analysts) |
Q2 Adjusted EPS | Beat | $2.05 | $1.89 (17 Analysts) |
Q2 EPS |
| $1.51 |
|
Q2 Net Income |
| $305 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 7 "strong buy" or "buy", 14 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the computer hardware peer group is "buy."
Wall Street's median 12-month price target for NetApp Inc is $119.09, about 8.5% above its November 24 closing price of $108.96
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 13 three months ago
Press Release: ID:nBw91rVTVa
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.
Related Articles
U.S. September PCE: Likely to Fall Short of Expectations, Bullish for US Stocks
TradingKey - Currently, the market widely anticipates that the core PCE year-on-year growth rate for September will stand at 2.9%, and we expect the upcoming data to be slightly below this consensus forecast.
Palantir: Why PLTR Is So Notorious, Its Stock Performance, and If It's a Buy
TradingKey — Palantir Technologies Inc. (PLTR) stock maintains its investment appeal, with analysts recommending buying on dips as valuation corrections and consistently strong earnings bolster its long-term prospects. While short-term volatility is driven by a cooling AI narrative and adjustments t
The U.S. Dollar Index Is the Key Driver of Gold Prices: Where Are the Dollar and Gold Headed Next?
TradingKey - The strength or weakness of the U.S. Dollar Index stands as the core determinant shaping gold's trajectory.
Alibaba FY2026Q2 Earnings Preview: The Great Pivot from E-Commerce Giant to AI Powerhouse
TradingKey - As Alibaba's earnings approach, one question dominates: Can AI and quick commerce justify sacrificing profits now for future dominance? Preview how the RMB 50 billion quick commerce push, 35.8% AI cloud share, and fierce competition could decide if BABA's 88% rally holds.
U.S. September Nonfarm Payrolls: Two-Scenario Analysis, Will U.S. Stocks Diverge in Short-Term and Medium-to-Long-Term Trends?
TradingKey - This paper conducts an analysis of the U.S. September nonfarm payroll data and the subsequent employment market through two scenario-based assessments, alongside a short-term and medium-to-long-term outlook for U.S. stocks.
