NetApp(NTAP)2025-05-29 20:05Financial 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]