NASDAQ$NTAP

NetApp Inc · Q3 2025 earnings

Q3 2025 earnings · · After market close · Investor relations

Briefing

NetApp reported a slight increase in revenue but a decline in net income compared to the previous year, with strong growth in cloud storage services.

NetApp reported revenue of $1.64 billion for Q3 FY25, a 2% increase year-over-year. Net income was $299 million, down from $313 million in Q3 FY24. The company maintained strong growth in its cloud storage segment, with first-party and marketplace cloud storage revenue increasing over 40%. Non-GAAP EPS was $1.91, while GAAP EPS was $1.44.

  • Revenue increased 2% year-over-year to $1.64 billion.
  • Net income decreased to $299 million from $313 million in Q3 FY24.
  • Public Cloud segment revenue grew 15% year-over-year to $174 million.
  • Returned $306 million to stockholders through share repurchases and dividends.

Headline financials

Total Revenue

$1.64B

Previous: $1.61B+2.2%
EPS (adj)

$1.91

Previous: $1.48+29.1%
GAAP Operating Margin

22.1%

Previous: 23.0%-3.9%
Free Cash Flow Margin

20.6%

No prior period
GAAP Gross Margin

69.8%

Previous: 72.0%-3.1%
Capital Expenditures

-$47M

Previous: -$109M+56.9%
Net Income

$299M

Previous: $313M-4.5%
Operating Income

$362M

Previous: $366M-1.1%
Gross Profit

$1.15B

Previous: $1.15B-0.5%
R&D Expense

$247M

Previous: $249M-0.8%

Revenue & EPS history

NetApp · Revenue · Quarterly

$1.64B

Q3 2025+2.2%vs Q3 2024
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

NetApp · $1.56B total across 2 segments · Q2 2024

  • Hybrid Cloud
    $1.41B-7.4%
  • Public Cloud
    $154M+8.5%

Forward guidance

NetApp expects revenue to be between $1.65 billion and $1.80 billion in Q4 FY25, with continued growth in cloud services and stable operating margins.

Tailwinds

  • Revenue guidance for Q4 FY25 ranges from $1.65 billion to $1.80 billion.
  • Non-GAAP operating margin expected between 28% and 28.5%.
  • Cloud storage services expected to maintain over 40% year-over-year growth.
  • New product launches in AI and hybrid cloud solutions expected to drive demand.
  • Company remains committed to returning capital to shareholders via dividends and buybacks.

Headwinds

  • GAAP operating margin expected to remain under pressure at 20%-20.5%.
  • Continued macroeconomic uncertainty may impact enterprise IT spending.
  • Higher interest expense expected to impact net income.
  • Stock-based compensation expenses projected to remain high.
  • Foreign exchange volatility could affect international revenue.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2025

Historical avgQ3 2025

+0.1%

Avg return

Earnings day

+0.8%

Avg return

5 days after

+1.9%

Avg return

30 days after

50%

34 / 68 earnings

Positive

+19.6%

Q3 2024

Best reaction

-16.8%

Q1 2012

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026
Q3 2026-2.4%+0.4%+3.2%
Q2 2026-6.7%+0.7%-0.9%
Q1 2026+4.4%+2.9%+6.9%
Q4 2025-0.2%+4.6%+6.6%
Q3 2025-15.6%-19.8%-25.2%
Q2 2025-0.9%+5.0%-4.1%
Q1 2025-10.5%-9.3%-8.9%
Q4 2024+2.5%+1.3%+9.6%
Q3 2024+19.6%+16.6%+19.2%
Q2 2024+14.7%+16.9%+13.0%
Q1 2024-1.3%-0.7%-0.6%
Q4 2023+4.1%+1.7%+10.6%
Q3 2023+0.4%-1.8%-7.4%
Q2 2023-6.8%-8.5%-17.2%
Q1 2023+7.2%+0.2%-13.4%
Q4 2022+1.3%-1.5%-12.7%
Q3 2022-7.9%-9.0%-0.5%
Q2 2022-2.3%-1.6%+0.2%
Q1 2022+6.6%+9.4%+15.9%
Q4 2021+2.6%+5.6%+8.2%
Q3 2021-11.7%-5.9%+7.8%
Q2 2021+11.1%+12.5%+24.3%
Q1 2021+5.1%+13.5%+0.5%
Q4 2020-2.2%-5.5%-2.5%
Q3 2020-6.6%-8.2%-30.9%
Q2 2020+3.1%+5.6%+5.2%
Q1 2020-1.1%+0.0%+20.4%
Q4 2019-11.9%-11.4%-12.2%
Q3 2019-5.2%-4.6%+1.4%
Q2 2019-12.7%-14.7%-22.1%
Q1 2019-3.9%-0.5%+3.6%
Q4 2018+1.6%+0.2%+14.8%
Q3 2018-1.8%-3.8%+8.8%
Q2 2018+16.4%+20.0%+25.5%
Q1 2018-5.7%-7.2%-2.2%
Q4 2017+3.7%+1.9%+1.0%
Q3 2017+2.6%+1.6%+6.4%
Q2 2017+5.8%+6.5%+4.5%
Q1 2017+17.0%+19.9%+20.2%
Q4 2016-1.2%+0.4%-1.9%
Q3 2016+3.6%
Q2 2016-1.1%
Q1 2016+1.7%
Q4 2015-10.1%
Q3 2015-6.4%
Q2 2015-2.8%
Q1 2015+5.2%
Q4 2014+6.5%
Q3 2014-5.9%
Q2 2014+2.2%
Q1 2014-0.6%
Q4 2013+0.2%
Q3 2013+1.3%
Q2 2013+14.7%
Q1 2013+4.9%
Q4 2012+0.6%
Q3 2012+9.3%
Q2 2012-14.7%
Q1 2012-16.8%
Q4 2011-2.9%
Q4 2009-2.9%
Q3 2010-2.5%
Q3 2011-2.5%
Q2 2011-0.8%
Q2 2010+3.9%
Q1 2011+3.9%
Q1 2010+3.9%
Q4 2010+3.9%

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