NetApp(US:NTAP)2025-11-25 21:15Financial Performance - Total net revenues for the three months ended October 24, 2025, were $1,705 million, a 2.8% increase from $1,658 million for the same period in 2024[20] - Net income for the three months ended October 24, 2025, was $305 million, up from $299 million in the same period of 2024, representing a 2.0% increase[22] - NetApp reported net income of $538 million for the six months ended October 24, 2025, compared to $547 million for the same period in the previous year, reflecting a decrease of approximately 1.6%[28] - Total net revenues for the three months ended October 24, 2025, were $1,705 million, compared to $1,658 million for the same period in 2024, reflecting a year-over-year increase of 2.8%[92] - Revenues from the Americas for the three months ended October 24, 2025, were $863 million, slightly up from $862 million in the same period of 2024[95] Profitability - Gross profit for the six months ended October 24, 2025, was $2,325 million, compared to $2,275 million for the same period in 2024, reflecting a 2.2% increase[20] - The gross profit margin for Hybrid Cloud was 71.4% for the three months ended October 24, 2025, slightly down from 71.8% in the same period of 2024[92] - Total gross profit for the six months ended October 24, 2025, was $2,325 million, compared to $2,275 million for the same period in 2024, marking an increase of 2.2%[94] Cash Flow and Liquidity - Cash flows from operating activities for the six months ended October 24, 2025, were $800 million, compared to $446 million for the same period in 2024, indicating a significant increase[25] - Total cash and cash equivalents decreased to $2,072 million as of October 24, 2025, down from $2,742 million as of April 25, 2025, representing a decline of about 24.4%[39] - Cash, cash equivalents, and short-term investments decreased by $832 million to $3.0 billion as of October 24, 2025, primarily due to debt repayment and stock repurchases[155] Assets and Liabilities - Total current assets decreased to $4,654 million as of October 24, 2025, down from $5,851 million as of April 25, 2025, a decline of 20.4%[15] - Total liabilities decreased to $8,644 million as of October 24, 2025, from $9,783 million as of April 25, 2025, a reduction of 11.6%[17] - Total stockholders' equity as of October 24, 2025, was $986 million, a decrease from $1,040 million as of April 25, 2025[17] - The company’s total liabilities decreased to $1,277 million as of October 24, 2025, down from $1,401 million as of April 25, 2025, indicating a decline of approximately 8.8%[43] Stock and Dividends - The company repurchased $550 million of common stock during the six months ended October 24, 2025[25] - The company declared cash dividends of $0.52 per common share during the reporting period[27] - Cash dividends declared were $207 million for the six months ended October 24, 2025, compared to $213 million for the same period in the previous year, a decrease of approximately 2.8%[28] - Dividends declared per share remained at $1.04 for the six months ended October 24, 2025, with total dividend payments allocated to retained earnings amounting to $65 million[75] Expenses - Research and development expenses for the three months ended October 24, 2025, were $251 million, slightly down from $257 million in the same period of 2024[20] - Total operating expenses for Q2 and the first six months of fiscal 2026 were $805 million (47% of net revenues) and $1,592 million (49% of net revenues), reflecting a decrease of two percentage points year-over-year[140] - Sales and marketing expenses decreased by 4% in Q2 and 3% in the first six months of fiscal 2026 compared to the prior year, totaling $465 million and $926 million respectively[142] - General and administrative expenses increased by 16% in Q2 and 14% in the first six months of fiscal 2026, totaling $77 million and $173 million respectively[146] Restructuring and Charges - The company incurred restructuring charges of $25 million during the first six months of fiscal 2026, with a balance of $32 million remaining at the end of the period[80] - Restructuring charges recorded in the second quarter of fiscal 2026 totaled $23 million, contributing to a total of $25 million for the first six months[118] Future Projections - Future amortization expense related to purchased intangible assets is projected to be $31 million, with $9 million for the remainder of fiscal 2026 and $21 million for fiscal 2027[38] - Capital expenditures for the remainder of fiscal 2026 are anticipated to be between $90 million and $140 million[170] Other Financial Metrics - The effective tax rate for the six months ended October 24, 2025, was 22.8%, an increase from 17.0% in the prior year[81] - Interest income for the three months ended October 24, 2025, was $27 million, while interest expense was $(26) million, resulting in total other income of $(6) million[49] - The company has a total of $2.5 billion in Senior Notes, with maturities ranging from June 2027 to March 2035[166] Market and Sales - Hybrid Cloud product revenues for the three months ended October 24, 2025, were $788 million, an increase from $768 million in the same period of 2024, representing a growth of 2.6%[92] - Public Cloud revenues for the three months ended October 24, 2025, were $171 million, up from $168 million in the same period of 2024, indicating a growth of 1.8%[92] - Product revenues for the second quarter of fiscal 2026 were $768 million, a 3% decrease from $788 million in the same period of fiscal 2025[123] - Services revenues for the second quarter of fiscal 2026 were $917 million, reflecting a 3% increase from $890 million in the same period of fiscal 2025[126]