NetApp, Inc. recently published its financial results for the third quarter of fiscal year 2025, which concluded on January 24, 2025. The company recorded a net revenue of $1.64 billion, a slight rise from $1.61 billion in the same quarter of the previous year, reflecting a year-over-year increase of 2%. The Hybrid Cloud segment generated $1.47 billion, while the Public Cloud segment contributed $174 million.
Financial Highlights
- Annualized net revenue run rate for all-flash arrays reached $3.8 billion, up 10% year-over-year.
- Cloud storage services revenue increased by over 40% year-over-year.
- GAAP operating margin for the third quarter was 22%, while the non-GAAP operating margin stood at 30%.
- GAAP net income was $299 million or $1.44 per share, compared to $313 million or $1.48 per share a year prior. Non-GAAP net income was $397 million or $1.91 per share, down from $410 million or $1.94 per share in the previous year.
- Billings for the quarter totaled $1.71 billion, exhibiting a 2% increase year-over-year.
- Cash provided by operations was $385 million, a decrease from $484 million year-over-year.
- Shareholders received $306 million in total through share repurchases and dividends.
Future Financial Expectations
For the fourth quarter of fiscal year 2025, NetApp anticipates net revenues to fall between $1.65 billion to $1.80 billion, with expected earnings per share (EPS) in the range of $1.45 to $1.55 (GAAP) and $1.84 to $1.94 (non-GAAP). The company’s outlook for the full fiscal year 2025 sets net revenues between $6.49 billion to $6.64 billion, with consolidated gross margins expected around 70% and 71% on a GAAP and non-GAAP basis, respectively.
Innovation and Product Development
NetApp continues to innovate within its product offerings, launching new systems including the AFF A-Series and C-Series, which are tailored for both entry-level and mid-range applications. Enhancements in StorageGRID object storage and the extension of the E-Series product family highlight its commitment to providing advanced storage solutions. New features for NetApp’s software include improved scalability and automation for data protection.
Strategic Partnerships and Collaborations
Partnerships have strengthened NetApp’s capabilities and reach. Notable collaborations include a multi-year agreement with the San Francisco 49ers as their official intelligent data infrastructure partner, and an expanded partnership with Red Hat to integrate NetApp’s storage infrastructure with Red Hat OpenShift. Additional integrations with AWS and Microsoft Azure further enhance NetApp’s service offerings across various deployment environments.
Corporate Developments and Recognitions
NetApp is actively pursuing corporate growth through strategic sales, such as the recent divestiture of its Spot by NetApp FinOps business to Flexera, focusing on its core strengths in intelligent data infrastructure. The company also improved its sustainability initiatives, achieving new emissions reduction targets validated by the Science-Based Targets initiative.
The company has received various accolades, including awards for its hybrid cloud solutions and recognition for its workplace culture. Key personnel changes were made, including the appointment of Wissam Jabre as Executive Vice President and Chief Financial Officer, effective March 10, 2025.
For further information on NetApp’s financial performance and details, the full financial tables are available for review on the official NetApp website.
View Financial Tables: NetApp Financial Tables