NetApp has released its financial results for the third quarter of fiscal year 2025, which ended on January 24, 2025. The company reported steady revenue growth, ongoing product innovation, and expanded partnerships, positioning itself as a key player in intelligent data infrastructure and hybrid cloud solutions. Despite slight pressures on net income, NetApp continues to focus on delivering value to customers and shareholders through product enhancements, strategic collaborations, and financial discipline.
Financial Performance Overview
NetApp reported net revenues of $1.64 billion for Q3 FY2025, marking a 2% increase compared to $1.61 billion in the same quarter of fiscal year 2024. This growth highlights NetApp’s stable performance despite broader economic challenges.
- Hybrid Cloud segment revenue reached $1.47 billion, slightly up from $1.46 billion in Q3 FY2024.
- Public Cloud segment revenue rose to $174 million, compared to $151 million in the year-ago quarter.
Billings and Revenue Run Rate
NetApp reported billings of $1.71 billion, reflecting a modest 2% year-over-year increase from $1.69 billion. The all-flash array annualized revenue run rate stood at $3.8 billion, representing 10% annual growth.
Profitability and Margins
NetApp achieved a GAAP operating margin of 22% for the quarter, with a non-GAAP operating margin of 30%. However, GAAP net income declined slightly to $299 million, compared to $313 million in Q3 FY2024. Non-GAAP net income came in at $397 million, down from $410 million year-over-year.
Earnings Per Share (EPS)
- GAAP EPS was reported at $1.44, slightly lower than $1.48 in Q3 FY2024.
- Non-GAAP EPS stood at $1.91, compared to $1.94 in the prior year.
Shareholder Returns and Cash Position
During the quarter, NetApp returned $306 million to shareholders through share repurchases and cash dividends. The company’s cash, cash equivalents, and investments totaled $2.26 billion at the end of the quarter. Cash provided by operations was $385 million, compared to $484 million in Q3 FY2024.
Fiscal Year 2025 Outlook
Fourth Quarter Guidance
For the fourth quarter of fiscal year 2025, NetApp provided the following financial outlook:
- Net revenues: Expected between $1.65 billion and $1.80 billion.
- GAAP EPS: Forecasted between $1.45 and $1.55.
- Non-GAAP EPS: Expected between $1.84 and $1.94.
Full-Year Forecast
For the entire fiscal year 2025, NetApp expects:
- Net revenues: Between $6.49 billion and $6.64 billion.
- GAAP operating margin: Between 20% and 20.5%.
- Non-GAAP operating margin: Between 28% and 28.5%.
- GAAP EPS: Between $5.49 and $5.59.
- Non-GAAP EPS: Between $7.17 and $7.27.
Innovation and Product Expansion
Enhanced Storage Portfolio
During the quarter, NetApp introduced new AFF A-Series platforms designed for entry and midrange customers, delivering high performance at competitive prices. The AFF C-Series was also expanded to offer efficient solutions for general-purpose workloads across file, block, and object storage environments.
Object Storage Enhancements
The StorageGRID SFG6112 system was updated to support 60TB flash drives, doubling density for object deployments while reducing data center space, power, and cooling requirements. StorageGRID software was also enhanced for better scalability, particularly for handling small objects and mixed-media grids.
Kubernetes and AI Workload Support
NetApp announced the general availability of Trident 24.10, enabling Kubernetes workloads to leverage NetApp ONTAP’s scale, performance, and data protection across on-premises and cloud environments. NetApp BlueXP™ also gained new features, including ransomware integration with Microsoft Sentinel and workload management improvements.
Strategic Collaborations and Customer Success
Partnership with San Francisco 49ers
NetApp partnered with the San Francisco 49ers, becoming the official Intelligent Data Infrastructure Partner. This collaboration aims to enhance the 49ers’ operations and elevate fan experiences at Levi’s Stadium.
Expanded Alliances
- Red Hat: Integrated NetApp’s data infrastructure with Red Hat OpenShift, streamlining management across hybrid multicloud environments.
- AWS Outposts: Launched on-premises storage arrays, allowing customers to manage external block data volumes through the AWS Management Console.
- Siemens Teamcenter: Amazon FSx for NetApp ONTAP™ received certification, enhancing PLM workloads in the cloud.
Microsoft and Google Cloud Integrations
- Azure NetApp Files introduced a cool access tier, lowering costs for infrequently accessed data.
- Azure Virtual Machines Backup added support for Azure NetApp Files, improving backup options.
- NetApp Data Infrastructure Insights became available on the Azure Marketplace, offering enhanced observability and automation for Azure migrations.
- Google Cloud Ready Designation was awarded to NetApp Volumes and Cloud Volumes ONTAP™, strengthening NetApp’s position in regulated and sovereign cloud environments.
Corporate Developments and Leadership Changes
Sale of Spot by NetApp FinOps
To sharpen its focus on intelligent data infrastructure, NetApp announced the sale of Spot by NetApp FinOps to Flexera.
Sustainability Commitments
NetApp received approval for new near-term science-based emissions reduction targets from SBTi, reinforcing its sustainability focus.
Executive Appointments
- Wissam Jabre was appointed Executive Vice President and CFO, effective March 10, 2025.
- Suhail Hasanain was named Regional Director for Middle East and Africa, responsible for driving business growth in the region.
Industry Recognition and Awards
- NetApp was recognized by CRN for its Hybrid Cloud Infrastructure and AFF C-Series as 2024 Products of the Year.
- CEO George Kurian was included in the Silicon Valley Power 100 List.
- U.S. News named NetApp as a top employer in Semiconductors, Electronics, and Equipment.
- Forbes listed NetApp among America’s 300 Most Trusted Companies.
- CRN also named NetApp one of the 50 Hottest Edge Companies and one of the 20 Coolest Cloud Storage Companies for 2025.
Upcoming Dividend
NetApp announced a cash dividend of $0.52 per share, payable on April 23, 2025, to shareholders on record as of April 4, 2025.
