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NetApp, Inc.: What’s Inside the Sovereign AI Push & How Does AFX Expand the Global Opportunity?

NetApp reported robust financial results for the second quarter of fiscal year 2026, indicating strong operational execution and favorable market positioning. The company’s total revenue for the quarter was $1.71 billion, marking an increase of 3% year-over-year. When excluding the divested Spot business, revenue grew by 4%. The report highlights significant growth in their All-Flash and Public Cloud segments, which together composed 70% of the Q2 revenue. This strategic shift towards high-margin sectors translated into achieving record gross margins and surpassing expectations for operating margin and EPS. Positively, the company’s Public Cloud revenue demonstrated notable growth, excluding the Spot business, with a year-over-year increase of 18%. This growth was propelled by strong demand in first-party and marketplace storage services. Additionally, the All-Flash array revenue experienced a 9% year-over-year growth, supported by an increasing base of installed systems.