Core Insights - NetApp, Inc. (NTAP) reported fourth-quarter fiscal 2025 non-GAAP earnings of $1.93 per share, exceeding the Zacks Consensus Estimate by 1.6% and reflecting a year-over-year increase of 7.2% [1] - Revenues for the quarter reached $1.73 billion, a 3.8% year-over-year increase, and also surpassed the consensus mark by 0.2% [2] - Management provided a mixed outlook for fiscal 2026, citing global macroeconomic slowdown and increased spending caution [3][4] Financial Performance - Fiscal 2025 revenues rose 5% year over year to $6.57 billion, with non-GAAP earnings per share increasing by 12.4% to $7.25 [2] - The Hybrid Cloud segment generated $1.57 billion in revenue, up 3% year over year, while the Public Cloud segment saw an 8% increase to $164 million [6][8] - Non-GAAP gross margin for the quarter was 69.5%, down 200 basis points from the previous year, while operating income rose 5.8% to $496 million [12] Guidance and Outlook - For fiscal 2026, NTAP expects revenues between $6.625 billion and $6.875 billion, representing a 3% year-over-year increase at the midpoint [4] - Non-GAAP earnings per share are projected to be between $7.60 and $7.90, with gross margin anticipated to be 71-72% [4] Shareholder Returns - In the fiscal fourth quarter, NTAP returned $355 million to shareholders through dividends and share repurchases, with a total of $1.57 billion returned in fiscal 2025 [15][16] - The company announced a dividend of 52 cents per share, payable on July 23, 2025 [16] Market Reaction - Following the earnings announcement, NTAP's shares fell 4.8% in pre-market trading, despite a 10.6% increase over the past month [5]

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]