Core Insights - NetApp, Inc. (NTAP) reported first-quarter fiscal 2026 non-GAAP earnings of $1.55 per share, exceeding the Zacks Consensus Estimate by 0.7%, but down 0.6% year over year [1][9] - Revenues for the quarter were $1.56 billion, reflecting a 1% increase year over year and beating the consensus mark by 1.2% [2][9] - Management reaffirmed its fiscal 2026 outlook, expecting revenues between $6.625 billion and $6.875 billion, and non-GAAP earnings per share between $7.60 and $7.90 [3][9] Financial Performance - Revenues from the Hybrid Cloud segment increased 1% year over year to $1.4 billion, while Public Cloud segment revenues improved 1% to $161 million [6] - Product revenues within the Hybrid Cloud segment decreased 2% year over year to $654 million, accounting for 46.8% of segment revenues [7] - Support Contracts revenues totaled $647 million, up 3% year over year, and Professional and Other Services revenues amounted to $97 million, up 18% [10] Operational Metrics - Non-GAAP gross margin was 71.1%, down 110 basis points from the prior year, with the Hybrid segment's gross margin at 70% and Public Cloud segment at 80.1% [12] - Non-GAAP operating income decreased 0.5% year over year to $401 million, with a non-GAAP operating margin of 25.7% [13] - Total billings rose 4% year over year to $1.51 billion, and deferred revenues totaled $4.5 billion, up 8.6% [11] Cash Flow and Shareholder Returns - Net cash from operations was $673 million, slightly down from $675 million in the previous year [14] - Free cash flow was $620 million, with a free cash flow margin of 39.8%, compared to $640 million in the prior year [15] - The company returned $404 million to shareholders through dividends and share repurchases, with a dividend of 52 cents per share announced [16][15] Guidance - For the second quarter, the company anticipates revenues in the range of $6.625 billion to $6.875 billion, reflecting a 3% growth at the midpoint [17] - Non-GAAP EPS is projected to be between $1.84 and $1.94, with a midpoint of $1.89 [18]