NetApp, Inc. Q1 2027 Earnings Recap

NetApp’s Q1 results were strong, but the stock rose only 1.2%, suggesting investors viewed the upside as broadly in line with expectations or discounted. Revenue grew 30% year over year to $2.03 billion, while management materially raised its fiscal 2027 outlook, supported by growth across public cloud, all-flash arrays, Keystone, and AI-related demand.

Key Takeaways

• Revenue increased 30% year over year to $2.03 billion; gross profit rose 29% to $1.43 billion.
• Non-GAAP operating margin reached 31.9%, and EPS increased 66% from the prior-year quarter.
• Public cloud revenue grew 28% to $206 million, or 19% excluding the additional week; all-flash array revenue rose 47% to $1.31 billion.
• NetApp reported approximately 350 AI and data-lake modernization wins, with deal sizes increasing as customers move from proof-of-concept deployments to production workloads.
• Management said it exceeded Q1 guidance on every metric and materially raised its fiscal 2027 outlook, while noting some benefit from accelerated purchasing decisions and pricing.