NetApp Inc (NTA.DE) Q3 2025 Earnings Report

Revenue and profitability overview
- Revenue: 1,641,000,000 USD; YoY change: -1.62%; QoQ change: -1.03%
- Gross profit: 1,145,000,000 USD; YoY change: -2.64%; QoQ change: -2.72%
- Gross margin: 0.6977
- Operating income: 362,000,000 USD; YoY change: -1.09%; QoQ change: +4.93%
- Operating margin: 0.221 (22.06%)
- Net income: 299,000,000 USD; YoY change: +2.75%; QoQ change: 0.00%
- Net margin: 0.182
- Earnings per share: 1.47 (EPS); Diluted EPS: 1.44

Cost structure and efficiency
- EBITDA: 446,000,000 USD; EBITDA margin: 27.18%
- Interest expense: 12,000,000 USD; Depreciation & amortization: 64,000,000 USD
- Tax expense: 71,000,000 USD; Effective tax rate: ~19.2%

Cash flow and capital allocation
- Net cash from operating activities: 385,000,000 USD
- Capital expenditures: 47,000,000 USD
- Free cash flow: 338,000,000 USD
- Net change in cash: +31,000,000 USD; cash at end of period: 1,518,000,000 USD
- Dividends paid: 106,000,000 USD; common stock repurchased: 200,000,000 USD; common stock issued: 53,000,000 USD

Balance sheet and liquidity
- Total assets: 8,989,000,000 USD; total liabilities: 7,994,000,000 USD; total stockholders’ equity: 995,000,000 USD
- Cash and cash equivalents: 1,511,000,000 USD; total debt: 2,250,000,000 USD; net debt: 739,000,000 USD
- Current ratio: 0.932; Quick ratio: 0.868; Cash ratio: 0.360
- Working capital dynamics driven by customer deferrals (deferred revenue: 2,070,000,000 USD) and productive asset base (Goodwill: 2,723,000,000 USD; intangible assets: 49,000,000 USD)

Valuation and growth signal
- Price-to-earnings: 21.49x; price-to-sales: 15.66x; price-to-book: 25.83x; EV/EBITDA: not disclosed directly, but EV multiple cited as 59.29 in the dataset
- Dividend yield: 0.41%; Dividend payout ratio: 35.5%
- Enterprise value multiple and equity value reflect a premium for NetApp’s multi-cloud data-management platform and recurring revenue characteristics, balanced by modest revenue growth and leverage considerations.

No earnings call transcript was provided in the dataset. Consequently, there are no management quotes or theme-based highlights to segment by strategy, operations, or market conditions.

Strategic thesis: NetApp remains a durable player in the multi-cloud data-management space, with strong profitability and cash generation that support shareholder returns and potential deleveraging if operating performance remains resilient. Valuation reflects a premium relative to some software peers (P/E ~21.5x; P/S ~15.7x; P/FCF ~76x), underscoring the market’s confidence in NetApp’s cloud-centric data-management ecosystem. Key catalysts include sustained cloud-adoption momentum, expansion of ONTAP-enabled offerings across additional cloud environments, and a capital-allocation framework that balances returns with selective investments in growth initiatives. Risks to this thesis include ongoing competition and potential deceleration in enterprise IT spending. Investors should monitor revenue mix between Hybrid Cloud and Public Cloud, deferred-revenue evolution, capex cadence, and the trajectory of free cash flow as a predictor of long-term equity value.