NetApp Reports Strong Third Quarter Results for FY 2026
1. Overview of Financial Performance
On February 26, 2026, NetApp Inc. (NASDAQ: NTAP), the Intelligent Data Infrastructure company, announced its financial results for the third quarter of fiscal year 2026, which concluded on January 23, 2026. The company reported net revenues of $1.713 billion, marking a 4% increase from $1.641 billion in the same quarter last year. This impressive performance was bolstered by record revenue in all-flash arrays, a robust showing in both first-party and marketplace cloud storage services, and a growing leadership position in enterprise artificial intelligence (AI).
George Kurian, CEO of NetApp, expressed his satisfaction with the quarter's results, stating, “We are pleased to announce another strong quarter with accelerating revenue and earnings growth... Our unified data platform continues to deliver exceptional customer benefits, establishing us as the intelligent data backbone for the AI era.”
2. Detailed Financial Results
GAAP Results
| Metric | Q3 FY26 (in millions) | Q3 FY25 (in millions) | % Change |
|---|---|---|---|
| Net Revenues | $1,713 | $1,641 | 4% |
| Hybrid Cloud Segment Revenue | $1,539 | $1,467 | 5% |
| Public Cloud Segment Revenue | $174 | $174 | — |
| Gross Profit | $1,209 | $1,145 | 6% |
| Net Income | $334 | $299 | 12% |
| Earnings Per Share | $1.67 | $1.44 | 16% |
| Cash Provided by Operations | $317 | $385 | (18)% |
Non-GAAP Results
| Metric | Q3 FY26 (in millions) | Q3 FY25 (in millions) | % Change |
|---|---|---|---|
| Billings | $1,886 | $1,713 | 10% |
| Net Revenues | $1,713 | $1,641 | 4% |
| Gross Profit | $1,219 | $1,161 | 5% |
| Net Income | $423 | $397 | 7% |
| Earnings Per Share | $2.12 | $1.91 | 11% |
Constant Currency Impact
NetApp highlighted that in constant currency terms, net revenues grew by 2%, while billings increased by 8% year-over-year. The favorable impact of foreign currency exchange rates contributed approximately $21 million to the year-over-year fluctuations in both GAAP and non-GAAP net income.
3. Fourth Quarter and Full Year Guidance
For the upcoming fourth quarter of fiscal year 2026, NetApp expects net revenues to be between $1.795 billion and $1.945 billion. The company projects GAAP gross margins in the range of 68.5% to 69.5% and non-GAAP gross margins between 69.5% and 70.5%. Earnings per share guidance for the fourth quarter is set between $1.76 and $1.86 for GAAP and $2.21 to $2.31 for non-GAAP.
For the full fiscal year 2026, the company anticipates net revenues of approximately $6.772 billion to $6.922 billion, with projected earnings per share ranging from $6.07 to $6.17 for GAAP and $7.92 to $8.02 for non-GAAP.
4. Business Highlights
Leading Product Innovation
NetApp introduced several innovative features during the quarter, including:
- Agentic AI capabilities in Workload Factory for FSx for NetApp ONTAP, providing proactive insights and operational response.
- Edge-Aware Caching Insights in Workload Factory to enhance performance across distributed storage environments.
- Amazon EVS Best Practice Advisor, offering automated guidance for optimizing FSx for NetApp ONTAP environments.
Other significant announcements included the launch of new integrations with Amazon S3 and Azure NetApp Files, enhancing the platform's capabilities for AI and machine learning applications.
Customer and Partner Momentum
NetApp's recognition as the 2025 Americas Partner of the Year Software Development Company (SDC) by Microsoft underscores its strong partner relationships and innovation in delivering Azure-based solutions.
Personnel Changes
The company appointed Willem Hendrickx as Senior Vice President and General Manager for EMEA and LATAM, recognizing the demand for AI-driven hybrid cloud data infrastructure in those regions. Additionally, Paul Fipps, President of Global Customer Operations at ServiceNow, joined the Board of Directors to help guide the company's strategy.
Awards and Recognition
NetApp's achievements during the quarter included:
- Being ranked among the top three global storage vendors by IDC.
- Recognition as a Leader in GigaOm's Primary Storage Radar.
- Inclusion in *CRN's* 2026 Cloud 100 list as one of the 20 Coolest Cloud Storage Companies.
5. Conclusion
NetApp's third quarter results for fiscal year 2026 reflect a strong performance driven by innovation, strategic growth, and a commitment to operational discipline. The company's focus on enhancing its data infrastructure in the AI era positions it well for continued success in the evolving tech landscape. As NetApp prepares for the fourth quarter and the full fiscal year, its outlook remains optimistic, backed by solid financial guidance and ongoing product advancements.
