NetApp Shares Climb After Q2 Earnings Beat Estimates

Core Insights - NetApp, Inc. reported strong second-quarter earnings, surpassing both revenue and earnings estimates, leading to a significant increase in stock price [1][2] Financial Performance - Quarterly earnings were $2.05 per share, exceeding the consensus estimate of $1.89 [2] - Quarterly revenue reached $1.71 billion, beating the Street estimate of $1.69 billion [2] Business Highlights - The revenue growth was attributed to high demand for AI solutions, first-party and marketplace cloud storage services, and all-flash offerings, as stated by CEO George Kurian [3] - All-flash array revenue grew 9% year-over-year to $1 billion, resulting in an annualized net revenue run rate of $4.1 billion [4] - Public Cloud revenue was $171 million, driven by first-party and marketplace storage services, which grew 32% year-over-year [4] - Billings for the quarter were $1.65 billion, reflecting a 4% year-over-year growth, marking the eighth consecutive quarter of growth [4] Future Outlook - The company raised its fiscal 2026 adjusted EPS guidance to a range of $7.75 to $8.05, while affirming its revenue guidance of $6.63 billion to $6.88 billion [4] - The stock price increased by 4.06% to $116.01 in extended trading following the earnings report [4]