NetApp delivered a solid QQ1 2025 (Q1 FY25) with 8% year-over-year revenue growth to $1.541 billion and non-GAAP earnings per share of $1.56, supported by a robust gross margin of 72% and operating margin of 26%. The company highlighted strength across its Hybrid Cloud and all-flash portfolio, led by continued demand for high-performance flash, cloud storage, and AI workloads. Management raised the full-year revenue and EPS outlook, signaling confidence in the secular growth drivers around GenAI, data unification, and multicloud strategies. Keystone (storage-as-a-service) momentum and first-party marketplace cloud storage services continue to be meaningful growth levers, while Public Cloud revenue grew 3% YoY to $159 million, with cloud gross margins expanding to 71%.
The quarter featured notable AI-ready product introductions (AFF A-series) and strategic collaborations (GenAI toolkit with Azure NetApp Files, Bedrock reference architecture with AWS), underscoring NetApp’s positioning as a data infrastructure platform for AI across on-premises and cloud environments. NetApp also disclosed a new RPO disclosure of $4.5 billion and maintained disciplined capital allocation, including ~$300 million of free cash flow and continued buybacks, while signaling a balanced path to mid-to-upper single-digit revenue growth with double-digit EPS growth through FY27. While macro uncertainty remains a headwind for broader IT spending, NetApp’s differentiated product portfolio, multi-cloud capabilities, and AI-centric go-to-market strategy should support durable profitability and cash generation in FY25 and beyond.