Description

NetApp’s $8.2 Billion Revenue Push — Can AI & Flash Storage Sustain The Surge?

NetApp’s fiscal first quarter of 2027 demonstrated significant growth and strong financial performance, marked by revenue reaching $2.03 billion, a 30% year-over-year increase, and earnings per share rising 66% to $2.58. This quarter included an additional week, which contributed approximately $65 million to revenue, but even excluding this, growth remained robust at 26% year-over-year. The company attributed results to broad-based demand across customer segments, geographies, and product lines, buoyed by heightened investments in AI-driven workloads, cloud adoption, and data modernization. Revenue growth was driven by strength in multiple areas, including public cloud, which increased 28% year-over-year, all-flash arrays revenue growing 47%, and Keystone storage-as-a-service showing continued momentum. Product revenue growth was particularly notable at 51%, though this mix contributed to a slight margin pressure with product gross margins at 54.6%, down somewhat from prior quarters due to higher component costs. Nonetheless, overall gross margin was 70.