NetApp (NTAP) Q3 FY2025 earnings: revenue $1.6 billion, up 2.2% on the year

NetApp, Inc. (NTAP) reported revenue of $1.6 billion for Q3 FY2025, the quarter ended 24 January 2025, up 2.2% on the same quarter a year earlier. Net income was $299 million, down 4.5% on the year, and diluted earnings per share $1.44. The figures are the company's own, from the 10-Q it filed with the SEC on 27 February 2025.

Revenue

$1.6 billion

+2.2% on the year · -1.0% on the quarter

Q4 FY2023Q3 FY2025

Operating margin

22.1%

22.8% a year earlier

Q4 FY2023Q3 FY2025

Net income

$299 million

-4.5% on the year · 0.0% on the quarter

Q4 FY2023Q3 FY2025

Diluted EPS

$1.44

-2.7% on the year · +1.4% on the quarter

Q4 FY2023Q3 FY2025

this quarterthe same quarter a year earlierHover a bar for its figure.

Income statement (profit and loss)

$ million	Q3 FY2025	Q2 FY2025	Q3 FY2024	On the quarter	On the year
Revenue	1,641	1,658	1,606	-1.0%	+2.2%
Cost of revenue	496	481	455	+3.1%	+9.0%
Gross profit	1,145	1,177	1,151	-2.7%	-0.5%
Gross margin	69.8%	71.0%	71.7%
Research and development	247	257	249	-3.9%	-0.8%
Operating income	362	345	366	+4.9%	-1.1%
Operating margin	22.1%	20.8%	22.8%
Interest expense	-12.0	-15.0	-17.0
Pre-tax income	370	360	382	+2.8%	-3.1%
Income tax	71.0	61.0	69.0	+16.4%	+2.9%
Effective tax rate	19.2%	16.9%	18.1%
Net income	299	299	313	0.0%	-4.5%
Net margin	18.2%	18.0%	19.5%
Diluted EPS	$1.44	$1.42	$1.48	+1.4%	-2.7%

$ million except per share.

Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ million	Q3 FY2025	Q2 FY2025	Q3 FY2024	On the quarter	On the year
Operating cash flow	385	105	484	+266.7%	-20.5%
Capital expenditure	47.0	45.0	36.0	+4.4%	+30.6%
Free cash flow	338	60.0	448	+463.3%	-24.6%
Free cash flow margin	20.6%	3.6%	27.9%
Cash from investing	-53.0	564	-437
Cash from financing	-289	-842	-178
Depreciation and amortisation	64.0	63.0	63.0	+1.6%	+1.6%
Share-based compensation	103	103	89.0	0.0%	+15.7%
Buybacks	200	300	100	-33.3%	+100.0%
Dividends paid	106	106	103	0.0%	+2.9%
Dividend per share	$0.52	$0.52	$0.50	0.0%	+4.0%
Diluted shares, weighted	208m	210m	211m	-1.0%	-1.4%
Shares outstanding at period end	203m	203m	206m	0.0%	-1.5%

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet

$ million	Q3 FY2025	Q2 FY2025	Q3 FY2024	On the quarter	On the year
Shareholders' equity	995	892	994	+11.5%	+0.1%
Debt	1,994	1,993	2,391	+0.1%	-16.6%
Operating lease liabilities	215	216	225	-0.5%	-4.4%
Other liabilities	5,785	5,903	5,759	-2.0%	+0.5%
Total liabilities and equity	8,989	9,004	9,369	-0.2%	-4.1%
Fixed assets	567	593	607	-4.4%	-6.6%
Goodwill	2,723	2,759	2,759	-1.3%	-1.3%
Intangible assets	49.0	96.0	138	-49.0%	-64.5%
Investments	750	744	1,097	+0.8%	-31.6%
Cash and equivalents	1,511	1,478	1,820	+2.2%	-17.0%
Receivables	898	873	787	+2.9%	+14.1%
Inventory	268	317	131	-15.5%	+104.6%
Other assets	2,223	2,144	2,030	+3.7%	+9.5%
Total assets	8,989	9,004	9,369	-0.2%	-4.1%

Questions

What was NetApp's revenue in Q3 FY2025?

NetApp (NTAP) reported revenue of $1.6 billion for Q3 FY2025, the quarter ended 24 January 2025, up 2.2% on the same quarter a year earlier.

How much did NetApp earn in Q3 FY2025?

Net income for Q3 FY2025 was $299 million, down 4.5% on the year, and diluted earnings per share $1.44.

When did NetApp report Q3 FY2025 results?

NetApp filed its 10-Q for the quarter ended 24 January 2025 with the SEC on 27 February 2025.

Quarterly results, the last 20 quarters

	Q2 FY2022	Q3 FY2022	Q4 FY2022 *	Q1 FY2023	Q2 FY2023	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026	Q3 FY2026	Q4 FY2026 *	Q1 FY2027
Revenue	1,566	796	2,498	1,592	1,663	1,526	1,581	1,432	1,562	1,606	1,668	1,541	1,658	1,641	1,732	1,559	1,705	1,713	1,948	2,025
Cost of revenue	507	541	591	546	576	525	506	436	452	455	492	443	481	496	539	461	478	504	583	606
Gross profit	1,059	255	1,089	1,046	1,087	1,001	1,075	996	1,110	1,151	1,176	1,098	1,177	1,145	1,193	1,098	1,227	1,209	1,365	1,419
Gross margin	68%	32%	44%	66%	65%	66%	68%	70%	71%	72%	71%	71%	71%	70%	69%	70%	72%	71%	70%	70%
R&D	216	220	235	240	243	230	243	247	262	249	271	252	257	247	256	242	251	237	261	274
Operating income	294	321	293	255	282	172	309	178	304	366	366	282	345	362	348	309	399	434	532	484
Operating margin	19%	40%	12%	16%	17%	11%	20%	12%	19%	23%	22%	18%	21%	22%	20%	20%	23%	25%	27%	24%
Interest expense	18.0	19.0	18.0	18.0	17.0	16.0	16.0	16.0	15.0	-17.0	16.0	-16.0	-15.0	-12.0	107	29.0	26.0	26.0	28.0	n/a
Pre-tax income	280	306	272	270	305	177	314	186	315	382	380	299	360	370	354	304	393	433	518	484
Tax rate	20%	18%	5%	21%	-146%	63%	22%	20%	26%	18%	23%	17%	17%	19%	4%	23%	22%	23%	22%	23%
Net income	224	252	259	214	750	65.0	245	149	233	313	291	248	299	299	340	233	305	334	404	375
Net margin	14%	32%	10%	13%	45%	4%	15%	10%	15%	19%	17%	16%	18%	18%	20%	15%	18%	19%	21%	19%
Diluted EPS	$0.98	$1.10	$1.13	$0.96	$3.41	$0.30	$1.13	$0.69	$1.10	$1.48	$1.37	$1.17	$1.42	$1.44	$1.65	$1.15	$1.51	$1.67	$2.03	$1.88
Operating cash flow	298	260	411	281	214	377	235	453	135	484	613	341	105	385	675	673	127	317	950	503
Capital expenditure	46.0	61.0	68.0	65.0	77.0	58.0	39.0	35.0	38.0	36.0	46.0	41.0	45.0	47.0	35.0	53.0	49.0	46.0	50.0	102
Free cash flow	252	199	343	216	137	319	196	418	97.0	448	567	300	60.0	338	640	620	78.0	271	900	401
Buybacks	125	125	250	350	150	200	150	400	300	100	100	400	300	200	250	300	250	200	200	200
Dividends paid	112	111	111	110	108	108	106	106	103	103	104	107	106	106	105	104	103	103	103	102
Shares outstanding	223m	223m	220m	218m	217m	214m	212m	209m	206m	206m	206m	205m	203m	203m	201m	200m	198m	198m	196m	196m
Filing	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS, and its diluted share count where shown, are from the company's results press release for that quarter, checked against the company's filed figures or a second data source. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

10-Q for the period ended 24 January 2025, filed 27 February 2025: the filing.