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Compared to Estimates, NetApp (NTAP) Q1 Earnings: A Look at Key Metrics
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NetApp (NTAP - Free Report) reported $2.03 billion in revenue for the quarter ended July 2026, representing a year-over-year increase of 29.9%. EPS of $2.58 for the same period compares to $1.55 a year ago.
The reported revenue represents a surprise of +9.86% over the Zacks Consensus Estimate of $1.84 billion. With the consensus EPS estimate being $2.13, the EPS surprise was +21.13%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how NetApp performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Gross margin - Product - Non-GAAP: 54.6% compared to the 50.8% average estimate based on seven analysts.
Gross margin - Services - Non-GAAP: 85.7% versus the six-analyst average estimate of 84.1%.
Total Revenue - % Change: 30% versus the six-analyst average estimate of 18.2%.
Product - % Change: 51% versus the six-analyst average estimate of 22.3%.
Net revenues- Product: $987 million versus $807.36 million estimated by seven analysts on average.
Net revenues- Services: $1.04 billion versus $1.04 billion estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +14.7% change.
Net revenues- Public Cloud: $206 million versus $196.19 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +28% change.
Net revenues- Professional and Other Services: $112 million versus $109.54 million estimated by four analysts on average.
Net revenues- Support: $720 million compared to the $729.9 million average estimate based on four analysts.
Net revenues- Hybrid Cloud: $1.82 billion versus the four-analyst average estimate of $1.65 billion. The reported number represents a year-over-year change of +30.1%.
Gross Profit- Products: $539 million versus the seven-analyst average estimate of $409.92 million.
Gross Profit- Public Cloud: $178 million versus $172.5 million estimated by three analysts on average.
Shares of NetApp have returned -3.8% over the past month versus the Zacks S&P 500 composite's +2% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
View the Zacks #1 Rank List
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Compared to Estimates, NetApp (NTAP) Q1 Earnings: A Look at Key Metrics
NetApp (NTAP - Free Report) reported $2.03 billion in revenue for the quarter ended July 2026, representing a year-over-year increase of 29.9%. EPS of $2.58 for the same period compares to $1.55 a year ago.
The reported revenue represents a surprise of +9.86% over the Zacks Consensus Estimate of $1.84 billion. With the consensus EPS estimate being $2.13, the EPS surprise was +21.13%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how NetApp performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:View all Key Company Metrics for NetApp here>>>
Shares of NetApp have returned -3.8% over the past month versus the Zacks S&P 500 composite's +2% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.