NetApp, Inc. Q1 FY2027 results: revenue $1.8 billion, up 30.1% on the year

NetApp, Inc. (NTAP) reported revenue of $1.8 billion for Q1 FY2027, the quarter ended 31 July 2026, up 30.1% on the same quarter a year earlier. Net income was $375 million, up 60.9% on the year, and diluted earnings per share $1.88. The figures are the company's own, from the 10-Q it filed with the SEC on 2 September 2026.

Revenue$1.8 billionup 30.1%

Net income$375 millionup 60.9%

Diluted EPS$1.88

QuarterQ1 FY2027ended 31 July 2026

The quarter, against the one before and a year earlier

Line	Q1 FY2027	Q4 FY2026	Q1 FY2026	Change on the year
Revenue	1,819	n/a	1,398	+30.1%
Cost of revenue	606	583	461	+31.5%
Gross profit	1,419	1,365	1,098	+29.2%
Gross margin	78.0%	n/a	78.5%
Research and development	274	261	242	+13.2%
Operating income	484	532	309	+56.6%
Operating margin	26.6%	n/a	22.1%
Interest expense	n/a	28.0	29.0	n/a
Pre-tax income	484	518	304	+59.2%
Income tax	109	114	71.0	+53.5%
Effective tax rate	22.5%	22.0%	23.4%
Net income	375	404	233	+60.9%
Net margin	20.6%	n/a	16.7%
Diluted EPS	$1.88	$2.02	$1.15	+63.5%

$ million except per share. Fourth quarters are the year less the first three quarters. 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 and capital returned

Line	Q1 FY2027	Q4 FY2026	Q1 FY2026	Change on the year
Operating cash flow	503	950	673	-25.3%
Capital expenditure	102	50.0	53.0	+92.5%
Free cash flow	401	900	620	-35.3%
Free cash flow margin	22.0%	n/a	44.3%
Depreciation and amortisation	33.0	49.0	51.0	-35.3%
Share-based compensation	98.0	100	83.0	+18.1%
Buybacks	200	200	300	-33.3%
Dividends paid	102	103	104	-1.9%
Dividend per share	$0.52	n/a	$0.52	+0.0%
Diluted shares, weighted	200m	201m	203m	-1.5%
Shares outstanding at period end	196m	196m	200m	-2.0%

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

Balance sheet at quarter end

Line	Q1 FY2027	Q4 FY2026	Q1 FY2026	Change on the year
Total assets	10,955	10,744	9,679	+13.2%
Cash and equivalents	1,573	2,070	2,085	-24.6%
Receivables	966	1,286	787	+22.7%
Inventory	375	198	133	+182.0%
Goodwill	2,916	2,772	2,734	+6.7%
Long-term debt	2,488	2,487	2,485	+0.1%
Operating lease liabilities	n/a	204	219	n/a
Shareholders' equity	1,495	1,351	975	+53.3%

Quarterly results, the last 12 quarters

	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	1,562	1,606	1,668	1,541	1,658	1,641	1,732	1,398	1,705	1,713	n/a	1,819
Cost of revenue	452	455	492	443	481	496	539	461	478	504	583	606
Gross profit	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	71%	72%	71%	71%	71%	70%	69%	79%	72%	71%	n/a	78%
R&D	262	249	271	252	257	247	256	242	251	237	261	274
Operating income	304	366	366	282	345	362	348	309	399	434	532	484
Operating margin	19%	23%	22%	18%	21%	22%	20%	22%	23%	25%	n/a	27%
Interest expense	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	315	382	380	299	360	370	354	304	393	433	518	484
Tax rate	26%	18%	23%	17%	17%	19%	4%	23%	22%	23%	22%	23%
Net income	233	313	291	248	299	299	340	233	305	334	404	375
Net margin	15%	19%	17%	16%	18%	18%	20%	17%	18%	19%	n/a	21%
Diluted EPS	$1.10	$1.48	$1.36	$1.17	$1.42	$1.44	$1.64	$1.15	$1.51	$1.67	$2.02	$1.88
Operating cash flow	135	484	613	341	105	385	675	673	127	317	950	503
Capital expenditure	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	97.0	448	567	300	60.0	338	640	620	78.0	271	900	401
Buybacks	300	100	100	400	300	200	250	300	250	200	200	200
Dividends paid	103	103	104	107	106	106	105	104	103	103	103	102
Shares outstanding	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

* 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. 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.

Source

10-Q for the period ended 31 July 2026, filed 2 September 2026, accession 0001193125-26-380207: the filing on EDGAR. All of NetApp, Inc.'s filings: EDGAR company page.

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