AI-extracted from the 10-Q filed 2026-09-02 — Q1 FY2027 (quarter ended July 31, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
NetApp Q1 FY2027 revenue surged 30% YoY to $2.0B, driven by 51% product growth and 28% Public Cloud expansion; net income more than doubled to $375M despite $56M restructuring charge.
Biggest Revenue Drivers
Hybrid Cloud$1,819M+30% YoY
Higher product revenues from all-flash array systems supported by price increases; support revenues increased primarily due to additional week and higher installed base contract values.
Public Cloud$206M+28% YoY
Higher customer demand driven by overall growth in cloud market, plus additional week in period contributing ~$15M.
Biggest Revenue Drivers
Total revenue: $2,025M+30% YoY
Hybrid Cloud$1,819M+30% YoY
Higher product revenues from all-flash array systems supported by price increases; support revenues increased primarily due to additional week and higher installed base contract values.
Public Cloud$206M+28% YoY
Higher customer demand driven by overall growth in cloud market, plus additional week in period contributing ~$15M.
Largest Expense Items
Cost of product revenues$450M+49% YoY
Materials costs increased $152M reflecting higher product revenues and elevated component costs; materials represented 94% of cost.
Sales and marketing$507M+10% YoY
Higher compensation costs driven by incentive compensation and extra week in Q1; additional week contributed ~$22M.
Research and development$274M+13% YoY
Higher compensation costs primarily from incentive compensation and extra week.
Restructuring charges$56MNM
Approved plan to redirect resources to highest return activities and reduce costs, consisting primarily of employee severance; activities expected to complete by end of FY2027.
Margins: Gross profit margin held steady at 70% YoY despite 49% cost-of-product increase, as price increases offset higher component costs. Public Cloud margins expanded six percentage points to 86% due to cost optimization and reduced fixed-asset depreciation.
Watch Items from the Filing
Supply chain pressures persist: materials costs rose $152M; company has $1.9B in firm, non-cancelable purchase commitments; pricing increases may face customer resistance.
$2.375B Senior Notes ($550M current portion) due June 2027; debt refinancing in elevated rate environment poses near-term liquidity obligation.
All-flash revenues grew to 72% of Hybrid Cloud segment (+8 points YoY), indicating strong customer shift toward higher-margin all-flash; Public Cloud growing at 28% YoY signals cloud adoption acceleration.
DataPelago acquisition ($193M; $87M paid in cash, $106M contingent) adds AI infrastructure capability; $56M restructuring charge suggests operational rationalization underway.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
2 transactions in NTAP reported by 2 members of Congress under the STOCK Act, most recent trade Feb 27, 2026. Reported transactions, not recommendations.
About NetApp, Inc. (NTAP): stock profile, AI score and financials
NetApp, Inc. (NTAP) stock profile, AI quality score, and SEC EDGAR financial data, a Technology sector company. 13F Pro's AI-powered ranking engine scores NTAP at 66.8/100 on a composite quality score built from its SEC filings, placing it at rank #387 of 2,925 stocks — the top 25% of the AI-ranked universe. NTAP scores in the top quartile across balance sheet strength (91.6), revenue scale (82.7), profitability (80.9). Shareholder dilution risk is elevated at 21.4/100, reflecting ongoing share issuance or stock-based compensation. Based on the latest XBRL financial filings (Q1 2027), NetApp, Inc. reports quarterly revenue of $1.8B, net income of $375.0M, an operating margin of 26.6%. Top institutional holders of NTAP by reported 13-F value include BlackRock, VANGUARD CAPITAL MANAGEMENT, VANGUARD PORTFOLIO MANAGEMENT, based on the most recent SEC filings. NTAP trades on the Nasdaq exchange and files with the SEC under CIK 1002047. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate NTAP daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for NetApp, Inc. directly from SEC EDGAR.