NetApp Reports Third Quarter of Fiscal Year 2025 Results
NetApp, a leading intelligent data infrastructure company, has released its financial results for the third quarter of fiscal year 2025, ending January 24, 2025. The company reported a slight increase in net revenues and highlighted several key business and operational developments.
Financial Highlights
NetApp reported net revenues of $1.64 billion for the third quarter, a 2% increase from the $1.61 billion reported in the same period last year. The company's GAAP net income was $299 million, down from $313 million in the third quarter of fiscal year 2024. Non-GAAP net income was $397 million, compared to $410 million in the previous year. GAAP earnings per share (EPS) were $1.44, slightly down from $1.48, while non-GAAP EPS was $1.91, compared to $1.94 in the same period last year.
Business and Operational Highlights
NetApp continued to innovate in the data infrastructure space, launching new all-flash NetApp™ AFF A-Series and C-Series systems, enhancing StorageGRID™ object storage capabilities, and expanding cloud storage offerings. The company also reported a 10% year-over-year increase in the all-flash array annualized net revenue run rate, reaching $3.8 billion. Additionally, first-party and marketplace cloud storage services revenue grew by more than 40% year-over-year.
Strategic Initiatives and Corporate Developments
NetApp returned $306 million to stockholders through share repurchases and cash dividends. The company also announced a multiyear strategic partnership with the San Francisco 49ers, designating NetApp as the Official Intelligent Data Infrastructure Partner. Furthermore, NetApp entered into an agreement to sell its Spot by NetApp FinOps business to Flexera, reflecting its focus on intelligent data infrastructure and long-term growth opportunities.
Management's Perspective
George Kurian, CEO of NetApp, commented on the results, stating, "The strength of our business model yielded operating margin ahead of and EPS in-line with expectations, despite Q3 top line performance below our standards. We are taking action to enhance our execution and improve our momentum. I remain confident in our position as the supplier of choice for AI and other data-driven workloads and our ability to achieve our long-term financial goals and deliver increasing shareholder value."
Future Outlook
For the fourth quarter of fiscal year 2025, NetApp expects net revenues to be in the range of $1.65 billion to $1.80 billion. GAAP EPS is projected to be between $1.45 and $1.55, while non-GAAP EPS is expected to range from $1.84 to $1.94. For the full fiscal year 2025, the company anticipates net revenues between $6.49 billion and $6.64 billion, with GAAP EPS ranging from $5.49 to $5.59 and non-GAAP EPS between $7.17 and $7.27.
SEC Filing: NetApp, Inc. [ NTAP ] - 8-K - Feb. 27, 2025