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NetApp’s 1,100 AI Deal Surge: Can Hybrid Cloud Drive The Next Growth Leg?

NetApp Inc. reported robust financial performance for fiscal year 2026, achieving record revenue, gross profit, operating income, and free cash flow. The company recorded a 5% year-over-year revenue increase to $6.93 billion, or 7% excluding the divestiture of its Spot business, driven by strong demand in Public Cloud, all-flash storage, and its Keystone storage-as-a-service offerings. Fourth-quarter revenue grew 12% year-over-year to $1.95 billion with a non-GAAP EPS of $2.43, surpassing guidance expectations for both metrics. This marked the tenth consecutive quarter of year-over-year revenue growth for NetApp Inc. The fiscal year’s operating margin improved to 30.2%, up 190 basis points, illustrating disciplined expense management alongside revenue growth. Gross margin was 71.3%, benefiting from Public Cloud and professional services expansion, though somewhat offset by lower product margins impacted by rising memory and component costs.