01—Abstract
Summary
Summary of the 10-K filed June 9, 2025. Cited figures are marked; the original filing is the authoritative source.
NetApp, Inc. reported fiscal 2025 (ended April 25, 2025) net revenues of $6,572 milliona, up from $6,268 million in fiscal 2024, with product revenues of $3,040 million and services revenues of $3,532 million.
Gross margin was 70% versus 71% a year earlier, and income from operations rose to $1,337 millionb (20% of net revenues) from $1,214 million. Net income was $1,186 million, or $5.67 per diluted share, compared with $986 million, or $4.63 per diluted share, in fiscal 2024. Net cash provided by operating activities was $1,506 million.
Cash, cash equivalents and short-term investments totaled $3,846 millionc at year-end, up from $3,252 million. The increase reflected $1.24 billion of net proceeds from March 2025 senior note issuances, offset by $1.2 billion of share repurchases (10.2 million shares at an average price of $112.55), $424 million of dividends, and a $400 million principal repayment. Total principal debt was $3,250 million.
The Board authorized an additional $1.1 billiond of repurchases on May 22, 2025, and declared a $0.52 quarterly dividend. By segment, Hybrid Cloud generated $5,907 million of revenue and Public Cloud $665 million.
Indirect channels accounted for 78% of net revenues, and distributors Arrow Electronics (21%) and TD Synnex (24%) were the two customers at 10% or more. The company also sold its Spot by NetApp business to Flexera for up-front cash of $70 million, with up to $49 million of contingent consideration, and recorded no material gain or loss on the sale.
02—Key points
Key Highlights
- Net revenues rose 5% to $6,572 million in fiscal 2025, driven by growth in both product and services revenues.
- Gross margin was 70% versus 71% in fiscal 2024, and income from operations increased to $1,337 million, or 20% of net revenues.
- Diluted net income per share was $5.67, up from $4.63 in fiscal 2024; net income was $1,186 million.
- Cash, cash equivalents and short-term investments reached $3,846 million, supported by $1.24 billion of net proceeds from 5.50% and 5.70% Senior Notes issued in March 2025.
- The company returned capital through $1.2 billion of share repurchases and $424 million of dividends, with an additional $1.1 billion repurchase authorization approved May 22, 2025.
- Indirect channels represented 78% of net revenues, with distributors Arrow Electronics (21%) and TD Synnex (24%) as the two 10%-plus customers.
- Restructuring charges were $83 million in fiscal 2025, primarily employee severance, and the company sold its Spot by NetApp business to Flexera.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, NetApp kept $0.18.
- Revenue$6.57B100.0%
- Cost of revenue−$1.96B29.8%
- Gross profit$4.61B70.2%
- Operating costs−$3.28B49.8%
- Operating income$1.34B20.3%
- Interest, other & tax−$151.0M2.3%
- Net income$1.19B18.0%
Where FY2025 revenue went
$6.57B- Other operating costs: $2.26B, 34% of revenue
- Cost of revenue: $1.96B, 30% of revenue
- Net income: $1.19B, 18% of revenue
- R&D: $1.01B, 15% of revenue
- Interest, other & tax: $151.0M, 2.3% of revenue
Kept 18% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed June 9, 2025Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $6.57B$6.27B | +4.9% |
| Cost of Revenue | $1.96B$1.83B | +6.8% |
| Gross Profit | $4.61B$4.43B | +4.1% |
| R&D Expenses | $1.01B$1.03B | −1.7% |
| Operating Expenses | $3.28B$3.22B | +1.8% |
| Operating Income | $1.34B$1.21B | +10.1% |
| Net Income | $1.19B$986.00M | +20.3% |
| EPS (Basic) | $5.81$4.74 | +22.6% |
| EPS (Diluted) | $5.67$4.63 | +22.5% |
| Shares Outstanding (Basic) | 204.00M208.00M | −1.9% |
| Shares Outstanding (Diluted) | 209.00M213.00M | −1.9% |
05—Questions
Frequently Asked Questions
How did NetApp perform financially in fiscal 2025?
Net revenues were $6,572 million, up from $6,268 million, and income from operations was $1,337 million compared with $1,214 million. Net income rose to $1,186 million from $986 million, and diluted EPS was $5.67 versus $4.63. Gross margin slipped to 70% from 71%.
How is NetApp's cash position and debt structure?
Cash, cash equivalents and short-term investments totaled $3,846 million at April 25, 2025, up from $3,252 million. Total principal debt was $3,250 million, after issuing $1.25 billion of notes in March 2025 (net proceeds $1.24 billion) and repaying $400 million of 3.30% notes in September 2024. No commercial paper was outstanding, and the $1.0 billion revolving credit facility was undrawn.
What returns has NetApp provided to shareholders?
In fiscal 2025 the company repurchased 10.2 million shares for $1.2 billion and paid $424 million in dividends at $2.08 per share declared. On May 22, 2025, the Board authorized an additional $1.1 billion of repurchases and declared a $0.52 per share dividend payable July 23, 2025.
What risks are highlighted in the filing?
Key risks include global economic and geopolitical conditions, U.S. tariffs and trade restrictions, reliance on a limited number of suppliers and single-source components, dependence on indirect channel partners and public cloud providers, cybersecurity incidents, AI-related regulatory developments, and the transition to consumption-based business models, which recognize revenue ratably rather than at delivery.
06—Continue