FY25 Performance Highlights - Total revenue reached $6.6 billion, a 5% year-over-year increase[45] - All Flash revenue amounted to $4.1 billion, demonstrating a 14% year-over-year growth[45] - Cloud Storage revenue experienced substantial growth, reaching $416 million, a 43% year-over-year increase[47] - Keystone TCV sales achieved $224 million, marking a 54% year-over-year growth[45] - The company's EPS reached $7.25, reflecting a 12% year-over-year increase[47] Q4 FY25 Financial Summary - Revenue for Q4 FY25 was $1.73 billion, a 3.8% year-over-year increase compared to the guidance of $1.65 billion - $1.80 billion[51] - Billings for Q4 FY25 reached $2.03 billion, a 12% year-over-year increase[51] - Non-GAAP gross margin was 69.5%, a decrease of 200 bps year-over-year[51] - Non-GAAP operating margin was 28.6%, an increase of 50 bps year-over-year[51] - Non-GAAP earnings per share (EPS) was $1.93, a 7.2% year-over-year increase compared to the guidance of $1.84 - $1.94[51]

Financial Performance - Fourth quarter net revenues reached $1.73 billion, a 4% increase year-over-year[1] - Fiscal year 2025 net revenues totaled $6.57 billion, reflecting a 5% year-over-year growth[1] - Billings for fiscal year 2025 amounted to $6.78 billion, an 8% increase year-over-year[3] - Net revenues for Q4 FY25 were $1,732 million, a 3.8% increase from $1,668 million in Q4 FY24[49] - Product revenues reached $845 million in Q4 FY25, up 4.8% from $806 million in Q4 FY24[52] - Net income for Q4 FY25 was $340 million, a 16.8% increase from $291 million in Q4 FY24[49] - Non-GAAP net income for FY2025 reached $1,516 million, up 10.3% from FY2024's $1,375 million[58] - Earnings per share for fiscal year 2025 were $5.67, up from $4.63 in fiscal year 2024[6] - Net income per share for Q4 FY25 was $1.65, compared to $1.37 in Q4 FY24, marking a 20.4% increase[62] Cash Flow and Shareholder Returns - The company plans to return $1.57 billion to stockholders through share repurchases and cash dividends in fiscal year 2025[3] - Free cash flow for Q4 FY25 was $640 million, which is 37.0% of net revenues[55] - The company repurchased $250 million of common stock in Q4 FY25, compared to $100 million in Q4 FY24[51] Assets and Liabilities - Total assets increased to $10,823 million as of April 25, 2025, compared to $9,887 million on April 26, 2024, reflecting a growth of approximately 9.4%[47] - Current assets rose to $5,851 million, up from $4,897 million, indicating an increase of about 19.4% year-over-year[47] - Total liabilities increased to $9,783 million, compared to $8,741 million, marking a growth of about 11.9%[47] - Long-term debt rose to $2,485 million from $1,992 million, reflecting an increase of approximately 24.8%[47] - The company reported a significant increase in accounts receivable, which grew to $1,246 million from $1,007 million, a rise of about 23.7%[47] - The total current liabilities increased to $4,662 million, up from $4,106 million, indicating a growth of approximately 13.5%[47] Operational Efficiency - Gross profit for Q4 FY25 was $1,193 million, compared to $1,176 million in Q4 FY24, reflecting a gross margin of 68.8%[49][52] - Non-GAAP income from operations for Q4 FY25 was $496 million, representing 28.6% of net revenues[53] - Total operating expenses for Q4 FY25 were $845 million, up from $810 million in Q4 FY24[49] - Research and development expenses for Q4 FY25 were $256 million, down from $271 million in Q4 FY24[60] - Sales and marketing expenses for FY2025 were $1,865 million, an increase of 2% from FY2024's $1,828 million[60] Future Projections - For Q1 FY 2026, net revenues are expected to be in the range of $1.455 billion to $1.605 billion[7] - Full FY 2026 net revenues are projected to be between $6.625 billion and $6.875 billion[8] - The company projects Q1 FY26 GAAP gross margin guidance of 70% - 71% and non-GAAP gross margin guidance of 71% - 72%[76] - For FY26, the company expects GAAP net income per share to be between $5.80 and $6.10, with non-GAAP net income per share guidance of $7.60 to $7.90[83] Strategic Focus - The company is focusing on driving growth in total product revenues through the sale of configured storage systems, emphasizing operational discipline to enhance earnings leverage[25] - NetApp's strategy includes potential simplification of pricing for certain products, which may impact the allocation between hardware and software components[26] - The company aims to maintain strong relationships with customers, partners, and suppliers while navigating global economic uncertainties and market conditions[1]

Company Overview - NetApp provides enterprise storage and data management software and hardware products and services, assisting enterprises in managing multi-cloud environments and adopting next-generation technologies like artificial intelligence (AI) and Kubernetes [11] Investment Ratings - NetApp is currently rated 3 (Hold) on the Zacks Rank, with a VGM Score of B, indicating a moderate investment outlook [12] - The company has a Momentum Style Score of A, with shares increasing by 11.1% over the past four weeks [12] Earnings Estimates - One analyst has revised NetApp's earnings estimate upwards for fiscal 2025, with the Zacks Consensus Estimate increasing by $0 to $7.23 per share [12] - NetApp boasts an average earnings surprise of 2.8%, suggesting a positive trend in earnings performance [12] Investment Considerations - With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, NetApp is recommended for investors' short lists [13]

Group 1 - NetApp is expected to announce its fiscal fourth-quarter earnings on May 29, 2025, with anticipated earnings of $1.90 per share and revenue of $1.72 billion, reflecting a 35% year-over-year increase in earnings and a 3% rise in sales compared to the previous year [1] - The company forecasts full-year 2025 revenue between $6.49 billion and $6.64 billion, with a non-GAAP operating margin of approximately 28%-28.5%, leading to an adjusted EPS expectation of $7.17 to $7.27 [2] - NetApp's current market capitalization is $20 billion, with past twelve months revenue recorded at $6.5 billion, operational profitability of $1.4 billion in operating profits, and a net income of $1.1 billion [2] Group 2 - Historical data indicates that NTAP stock has risen 63% of the time following earnings announcements, with a median one-day increase of 4.4% and a maximum observed jump of 18% [1][4] - Over the last five years, there have been 19 earnings data points for NTAP, with 12 positive and 7 negative one-day returns, resulting in positive returns approximately 63% of the time [5] - The correlation between short-term and medium-term returns post-earnings can provide a strategy for traders, particularly if the 1D and 5D returns demonstrate a strong correlation [4][5]

Core Viewpoint - NetApp, Inc. is expected to report its fourth-quarter fiscal 2025 earnings on May 29, with anticipated non-GAAP earnings per share between $1.84 and $1.94, and net revenues between $1.65 billion and $1.8 billion, reflecting a year-over-year increase [1][2] Financial Performance - The Zacks Consensus Estimate for earnings per share is $1.89, indicating a 5% rise from the previous year, while net revenues are estimated at $1.73 billion, implying a 3.4% increase from the prior year [1] - NetApp has beaten estimates in two of the last four quarters, with an average earnings surprise of 2.8% [2] Product and Market Dynamics - Strong demand for NetApp's modern all-flash arrays, particularly the C-series and ASA block-optimized flash, is expected to positively impact revenue [2] - The launch of new entry-level and midrange ASA systems is anticipated to enhance market penetration in the all-flash segment [3] - Keystone's storage-as-a-service offering has seen nearly 60% year-over-year revenue growth in the last reported quarter [3] Segment Performance - Hybrid Cloud revenues are estimated at $1.5 billion, reflecting a 2.2% increase from the previous year [4] - Public Cloud revenues are projected at $175.6 million, up 15.6% year-over-year, driven by a 40% increase in first-party and marketplace cloud storage services [5] Challenges and Outlook - The fiscal fourth-quarter outlook has been revised due to the Spot divestiture, a strong U.S. dollar, and global public sector weakness [6] - Uncertain macroeconomic conditions and cautious IT spending are expected to pose challenges [6]

Core Viewpoint - JP Morgan analyst Samik Chatterjee anticipates conservative earnings results for several hardware companies due to ongoing demand uncertainty and renewed tariff risks [1][2] Group 1: Company-Specific Insights - Dell Technologies Inc. is expected to benefit from AI spending and a stronger-than-expected AI market share, leading to an Overweight rating and a price forecast increase from $108 to $111 [5][4] - Hewlett Packard Enterprise Company is viewed as well-positioned for upcoming earnings, with projected revenue of $32.4 billion, reflecting an 8% year-over-year growth, and gross margins at 28.7% [9][8] - HP Inc. is anticipated to post solid second-quarter results due to strong PC demand, with a price forecast increase from $29 to $30, despite facing higher tariffs and uncertainty in future PC demand [11][10] - NetApp, Inc. is expected to see stable demand with a slight revenue beat in F4Q25E, but FY26 revenue growth is projected to be in the low-to-mid single digits due to a muted macro environment [12][13] Group 2: Market Trends and Economic Factors - The analyst notes that macroeconomic trends will significantly impact HPQ and HPE throughout the year, with NTAP showing resilience but limited revenue upside [5][6] - The upcoming earnings reports are likely to reflect management's strategies to mitigate risks for the second half of the year, especially after stronger-than-expected performances in the first half [2][3] - The tariff landscape remains a key concern, with expectations that it will affect second-quarter guidance and fiscal 2026 outlooks [6][7]

Core Viewpoint - NetApp (NTAP) is expected to report quarterly earnings of $1.89 per share, reflecting a 5% increase year-over-year, with revenues projected at $1.73 billion, a 3.4% increase from the previous year [1]. Earnings Estimates - Changes in earnings estimates are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate revisions and short-term stock performance [2]. Key Metrics Overview - Analysts project 'Net revenues- Services' to reach $893.66 million, indicating a 3.7% increase year-over-year [4]. - 'Net revenues- Product' is expected to be $831.32 million, reflecting a 3.1% increase from the previous year [4]. - 'Net revenues- Public Cloud' is forecasted at $169.80 million, showing an 11.7% increase year-over-year [4]. - 'Net revenues- Hybrid Cloud' is anticipated to reach $1.56 billion, a 2.6% increase from the previous year [5]. - 'Geographic Revenue- United States, Canada and Latin America' is projected at $877.61 million, a 3.5% increase year-over-year [5]. - 'Geographic Revenue- Asia Pacific' is expected to be $262.60 million, reflecting a 3.4% increase from the previous year [5]. - 'Geographic Revenue- Europe, Middle East and Africa' is estimated at $583.11 million, indicating a 3% increase year-over-year [6]. Margin and Revenue Changes - 'Gross margin - Product - Non-GAAP' is expected to be 56.2%, down from 61.3% in the same quarter last year [6]. - 'Gross margin - Services - Non-GAAP' is projected at 82.0%, compared to 81% in the previous year [7]. - Total Revenue is expected to change by 3.3%, down from 6% in the same quarter last year [7]. - 'Geographic Mix - Asia Pacific' is estimated at 15.2%, slightly up from 15% year-over-year [7]. - 'Geographic Mix - Americas' is projected at 50.9%, down from 51% in the same quarter last year [8]. Stock Performance - NetApp shares have increased by 13.2% over the past month, outperforming the Zacks S&P 500 composite, which rose by 10.7% [8].

NetApp (NTAP) closed the latest trading day at $93.09, indicating a +0.82% change from the previous session's end. This change outpaced the S&P 500's 0.64% loss on the day. On the other hand, the Dow registered a loss of 0.24%, and the technology-centric Nasdaq decreased by 0.74%. The the stock of data storage company has risen by 21.33% in the past month, leading the Computer and Technology sector's gain of 3.67% and the S&P 500's gain of 0.38%. The investment community will be closely monitoring the perfo ...

The most recent trading session ended with NetApp (NTAP) standing at $82.45, reflecting a +0.94% shift from the previouse trading day's closing. This move lagged the S&P 500's daily gain of 2.51%. Meanwhile, the Dow gained 2.66%, and the Nasdaq, a tech-heavy index, added 2.71%. Prior to today's trading, shares of the data storage company had lost 14.13% over the past month. This has lagged the Computer and Technology sector's loss of 12.18% and the S&P 500's loss of 8.86% in that time. The investment commun ...

As a value investor concentrating on companies with long-term growth potential at a reasonable price, I prioritize those undergoing strategic changes. These changes initiate a corrective force that returns the stock to its intrinsic value. My approach centers on analyzing company strategies and competitive advantages and how they will affect its future prospects. I believe that companies undergoing these strategic changes present investors with the highest return possible due to the many misconceptions and ...