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]

Market Volatility and Systemic Risk - Financial institutions face systemic risks amplified by geopolitical shocks, tariffs (spiking costs by 10-20%), and regulatory changes, necessitating proactive risk management [1] - The interconnectedness of global economies means events in one region (e g, Japan, London) can impact others, highlighting the importance of mitigating systemic risk [1] - Traditional risk models often struggle to keep pace with intraday market volatility, requiring faster data processing and analysis [7] Data and Technology Challenges - Many financial institutions still rely on legacy systems for risk management, which are inadequate for today's volatile environment [1] - Institutions face a data explosion when performing risk calculations like Monte Carlo simulations, generating 15+ terabytes of data daily for a 10-day VaR calculation [5] - Moving data to and from the public cloud for calculations can be slow (e g, taking 3 hours to retrieve 15 terabytes), hindering timely risk analysis [8] Hybrid Cloud and Data Architecture - Hybrid cloud environments are becoming essential, allowing institutions to leverage the scalability of the public cloud while keeping sensitive data on-premises due to regulatory requirements [10][39] - A well-designed data architecture is critical for CIOs, enabling them to leverage different environments for their respective strengths [44][45] - DDN enables a hybrid multi-protocol environment, allowing institutions to keep sensitive data on-premises while running analytics and making the results available quickly [44] DDN's Solutions and Capabilities - DDN offers data intelligence solutions, focusing on providing relevant information up the stack rather than just storage [1] - DDN's Infinia platform can achieve up to 8x faster performance compared to legacy NAS architectures in grid runs with Murex and scenario reloads [28][29] - DDN's data ocean concept allows institutions to leverage data where it sits, avoiding slow and difficult data movement, and provides thousands of tags for finding relevant data [36][37]

Financial Performance - NetApp's Q3 FY25 revenue reached $1.64 billion, a 2.2% year-over-year increase[61] - Billings for Q3 FY25 amounted to $1.71 billion, representing a 1.5% year-over-year growth[61] - The company's all-flash array annualized revenue run rate grew by 10% year-over-year, reaching $3.8 billion[59] - First party and marketplace cloud storage services revenue grew approximately 46% year-over-year[59] - Capital returns totaled $306 million in Q3 FY25[61] Guidance - NetApp projects Q4 FY25 revenue between $1.65 billion and $1.80 billion[97] - The company anticipates a Non-GAAP gross margin of 69% to 70% and a Non-GAAP operating margin of approximately 28% for Q4 FY25[97] - NetApp expects Non-GAAP earnings per share to be in the range of $1.84 to $1.94 for Q4 FY25[97] Strategic Focus - NetApp secured over 100 AI and data lake modernization deals, including AI-as-a-Service wins[59] - The company divested Spot by NetApp to refine its Public Cloud business focus[59] - NetApp launched new all-flash AFF A-series and C-series, enhanced StorageGRID object storage capabilities, and expanded cloud storage offerings[59]