NetApp Inc. (NASDAQ: NTAP) shares slipped more than 2% on Wednesday even as the data infrastructure firm reported fiscal second-quarter results ahead of analyst expectations, supported by increased adoption of AI workloads and cloud storage services.
The company posted adjusted earnings of $2.05 per share for the quarter ended October 24, 2025, topping the $1.89 consensus. Revenue rose 3% year over year to $1.71 billion, slightly above the $1.69 billion estimate.
All-flash array revenue increased 9% to $1.0 billion, while public cloud revenue reached $171 million, with first-party and marketplace storage services growing 32%. NetApp also reported a record Q2 adjusted operating margin of 31.1%.
For fiscal 2026, the company projected adjusted EPS of $7.75 to $8.05 and revenue of $6.63 billion to $6.88 billion. The midpoint of EPS guidance ($7.90) came in above the $7.75 consensus, while revenue guidance aligned with expectations.
