Executive Summary
NetApp, Inc. reported a solid Q4 2025, with revenue of $1.732 billion, up 3.9% year-over-year and 5.6% quarter-over-quarter. Gross margin remained robust at 68.9%, while operating income was $348 million and net income reached $340 million, delivering diluted EPS of $1.65. NetApp’s profitability showed resilience, with net income up 16.8% YoY and EPS up 18.4% YoY, even as the company continued to invest in growth initiatives. Free cash flow was strong at $640 million for the quarter, and cash and investments totaled $3.846 billion, supported by a durable balance sheet and a net debt position of approximately $749 million. These dynamics underscore NetApp’s strategy to monetize multi-cloud data services (e.g., Azure NetApp Files, Google Cloud integration, Cloud Volumes ONTAP) while maintaining disciplined capital allocation and a focus on data-centric storage solutions.
Looking ahead, NetApp’s results reflect a steady demand backdrop for data management in a multi-cloud environment. The company appears positioned to monetize cloud data services through a diversified product portfolio and partner ecosystem, with a healthy deferred revenue base suggesting revenue visibility. However, near-term profitability will hinge on managing operating expenses and sustaining margin expansion as cloud-related offerings scale. Management commentary (where available) would further illuminate execution priorities, pricing discipline, and capital-allocation plans going into 2026.
Key Performance Indicators
Key Insights
Revenue: $1.732B; YoY +3.90%; QoQ +5.55%
Gross Profit: $1.193B; Gross Margin 68.88%
Operating Income: $348M; Operating Margin 20.09%
Net Income: $340M; Net Margin 19.63%
EPS (Diluted): $1.65; EPS (Reported): $1.670
EBITDA: $428M; EBITDA Margin 24.71%
Cash Flow and Liquidity: Operating cash flow $675M; Free cash flow $640M; Cash and cash equivalents $2.742B; Short-term investments $1.104B; Total cash and investments $3.846B; Net debt $0.749B
Balance Sheet Highlights: Total assets $10.823B; Total ...
Financial Highlights
Revenue: $1.732B; YoY +3.90%; QoQ +5.55%
Gross Profit: $1.193B; Gross Margin 68.88%
Operating Income: $348M; Operating Margin 20.09%
Net Income: $340M; Net Margin 19.63%
EPS (Diluted): $1.65; EPS (Reported): $1.670
EBITDA: $428M; EBITDA Margin 24.71%
Cash Flow and Liquidity: Operating cash flow $675M; Free cash flow $640M; Cash and cash equivalents $2.742B; Short-term investments $1.104B; Total cash and investments $3.846B; Net debt $0.749B
Balance Sheet Highlights: Total assets $10.823B; Total liabilities $9.783B; Total stockholders’ equity $1.040B; Deferred revenue (current) $2.279B; Deferred revenue (non-current) $2.257B; Goodwill $2.726B; Intangible assets $0.043B
Growth and Profitability Context: Revenue YoY growth 3.9% and QoQ growth 5.6% reflect steady demand for data-management offerings; Net income growth of 16.8% YoY indicates improved operating leverage despite a relatively flat operating income trend; Gross margin remains a key strength around 69%.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
1.73B |
3.90% |
5.55% |
| Gross Profit |
1.19B |
1.45% |
4.19% |
| Operating Income |
348.00M |
-4.92% |
-3.87% |
| Net Income |
340.00M |
16.84% |
13.71% |
| EPS |
1.67 |
18.44% |
13.61% |
Management Commentary
Note: The dataset does not include an earnings call transcript. Therefore, no transcript-derived insights or thematic highlights are available from management commentary in this report. Typical themes in this space would include cloud-adoption momentum, multi-cloud go-to-market execution, margin trajectory, and capital-allocation priorities.
Forward Guidance
No formal forward guidance was provided in the data set. Based on the quarterly results and industry context, the potential trajectory suggests modest revenue growth supported by cloud/data-services demand, with gross margins around the high-60s to ~70% and operating margins near ~20%. Key variables to monitor include: (1) cloud-revenue mix and contribution from Azure NetApp Files, Google Cloud, and other hyperscaler integrations; (2) trajectory of deferred revenue and renewal rate cadence; (3) operating expense discipline and ongoing investments in R&D and go-to-market; (4) capital allocation actions (share repurchases, debt management, potential acquisitions). If cloud-adoption accelerates and cost controls hold, NetApp could realize further margin expansion and stronger free cash flow generation.