NetApp Exceeds Q1 Guidance, Posts Record-Setting Quarter with 30% Revenue Growth
NetApp, a leading provider of cloud data services and hybrid multi-cloud solutions, has delivered a stellar start to the year by exceeding its Q1 guidance on every metric. The company's record-setting quarter was marked by robust growth in public cloud, all-flash, and Keystone revenues, reflecting the momentum in its business and validating its strategy.
In Q1 FY27, NetApp reported revenue of $2.03 billion, a 30% year-over-year increase. This strong top-line growth translated into significant profitability, with gross profit growing 29% to a record $1.43 billion, operating margin reaching 31.9%, and EPS up 66% from Q1 a year ago.
According to George Kurian, CEO of NetApp, the company's disciplined approach enabled it to convert robust top-line growth into significant profitability, even in a challenging component cost environment. "This quarter's achievements reflect more than just strong execution," he said. "They underscore NetApp's growing leadership in a rapidly evolving environment."
NetApp's broad-based success spanned industries and geographies, with multi-year agreements, expansion into new workloads, and deeper customer engagement. These leading indicators of durable growth were fueled by the company's expanding role in the market, driven by its unified AI-ready data infrastructure.
A recent win highlights this momentum, where a major U.S. utility chose NetApp over both legacy and flash-only competitors, displacing the incumbent and standardizing on NetApp's unified AI-ready data infrastructure. This success is a testament to NetApp's ability to deliver meaningful results for customers and sets the stage for long-term growth.
The strength of NetApp's platform is fueling deeper relationships with existing customers and new customer acquisition. The company's public cloud revenue grew to $206 million in Q1, up 28% year-over-year, and up 19% adjusting for the extra week. Customers choose NetApp for its secure, scalable cloud-native storage services as they migrate workloads to the cloud.
VMware workloads are among those increasingly being moved to the cloud, opening significant opportunities for NetApp. A U.S. hospitality company adopted NetApp technology through Amazon FSx for NetApp ONTAP, supporting its large-scale VMware migration to AWS. The successful deployment delivered superior performance, lower costs, and versatile workload support.
With this exceptional quarter, NetApp is poised to capitalize on the expanding opportunities ahead, driven by its unified AI-ready data infrastructure and strong leadership in a rapidly evolving environment.
