NetApp Gearing Up to Report Q2 Earnings: Here's What to Expect

Core Insights - NetApp, Inc. (NTAP) is set to announce its second-quarter fiscal 2026 earnings on November 25, with expected non-GAAP earnings per share between $1.84 and $1.94, and a Zacks Consensus Estimate of $1.89, indicating a 1.1% growth year-over-year [1][2] Financial Performance - Anticipated net sales for the quarter are projected to be between $1.615 billion and $1.765 billion, with a Zacks Consensus Estimate of $1.69 billion, reflecting a 1.7% increase from the previous year [2] - NTAP has exceeded earnings estimates in three of the last four quarters, with an average surprise of 1.68% [2] Demand and Growth Drivers - There is a rising demand for NetApp's modern all-flash arrays, particularly the C-series capacity flash and ASA block-optimized flash, which are expected to drive sustained performance [3] - The annualized revenue run rate for NetApp's all-flash array increased by 6% year-over-year to $3.6 billion in the fiscal first quarter, supported by strong customer engagement [4] - The Hybrid Cloud segment is estimated to generate revenues of $1.51 billion in the fiscal second quarter, marking a 1.1% increase from the prior year [4] AI and Cloud Solutions - Increased demand for cloud storage and AI solutions is promising, with over 125 AI and data lake modernization deals secured in the fiscal first quarter [5] - The Public Cloud segment's revenues rose by 1% to $161 million in the last reported quarter, with a projected growth of 6.4% year-over-year to $178.7 million in the fiscal second quarter [6] Market Conditions - The global macroeconomic environment remains uncertain, with inflation pressures and elevated volatility potentially impacting fiscal second-quarter results [7] Earnings Prediction Model - Current models do not predict an earnings beat for NTAP, with an Earnings ESP of -0.12% and a Zacks Rank of 4 [8]