NetApp Inc (NTAP) Q3 2025 Earnings Report

NetApp delivered a modest top-line expansion in QQ3 2025, highlighting continued strength in AI-enabled storage and multi-cloud offerings while navigating near-term execution gaps and currency headwinds. Revenue reached $1.641 billion, up 2% year over year, with operating margin materially ahead of guide at approximately 30%, and EPS of $1.91 for the quarter (non-GAAP basis), in line with guidance despite some revenue and gross-margin shortfalls relative to plan. Management signaled a disciplined effort to tighten deal progression after several large opportunities slipped into Q4, with expectations that closing momentum will accelerate in Q4 and support the full-year targets, albeit with a lower fiscal 2025 guide driven by Spot divestiture and FX.

Management emphasized AI and data-centric platforms as enduring growth pillars, citing more than 100 AI infrastructure and data-lake modernization wins in the quarter and notable traction in StorageGRID object storage enhancements. The company announced a strategic divestiture of Spot by NetApp (CloudCheckr and related assets), which management projects to be largely neutral to EPS and to reduce cloud revenue by about $15 million in Q4. As the company heads into FY2026, NetApp maintains a growth trajectory in the mid-to-high single digits with a refocused margin and cash-flow discipline. Investors should monitor (i) FX-driven revenue impact, (ii) progress in closing larger deals in Q4, (iii) cloud-margin normalization post Spot divestiture, and (iv) the ramp of new AFF/A-Series/ASA platforms and Keystone-driven recurring revenue from multicloud deployments.