01—Abstract
Summary
Summary of the 10-K filed June 5, 2026. Cited figures are marked; the original filing is the authoritative source.
NetApp, Inc. (NASDAQ: NTAP) reported fiscal 2026 (ended April 24, 2026) net revenues of $6.93 billiona, up from $6.57 billion, with net income of $1.28 billion ($6.35 diluted EPS) versus $1.19 billion ($5.67) a year earlier.
Gross margin was 71% and income from operations rose to $1.67 billionb, or 24% of net revenues, from 20%. Product revenues were $3.19 billion and services revenues $3.73 billion. Operating cash flow was $2.07 billion, up from $1.51 billion.
Management said inflationary pressures and supply constraints for memory and other components, starting in the second half of fiscal 2026, have affected gross margins, and that it raised prices in the fourth quarter of fiscal 2026 and expects costs to stay elevated. Capital returns and balance sheet activity were significant. NetApp repurchased 9.0 million shares for $950 millionc, paid $413 million in dividends, and repaid a $750 million senior note at maturity in June 2025.
Principal debt fell to $2.5 billiond from $3.25 billion. Cash, cash equivalents and short-term investments totaled $3.58 billion. On May 21, 2026, the Board authorized an additional $1.0 billion repurchase and declared a $0.52 quarterly dividend.
Two distributors accounted for 43% of net revenues. The filing also flags risks including tariffs and trade controls, dependence on a limited number of suppliers, a transition to consumption-based models that defers revenue recognition, and an ongoing ERP system implementation that disrupted order processing and invoicing. Deloitte & Touche LLP issued an unqualified opinion on the financial statements and on internal control over financial reporting as of April 24, 2026.
02—Key points
Key Highlights
- Net revenues rose to $6.93 billion in fiscal 2026 from $6.57 billion, with growth in both product and services revenues.
- Income from operations was $1.67 billion, or 24% of net revenues, up from $1.34 billion (20%) in fiscal 2025.
- Diluted net income per share was $6.35, compared with $5.67 in fiscal 2025.
- Gross margin was 71%, with services margin gains partly offset by lower product gross margins as memory and component costs rose.
- Shareholder returns included $950 million of buybacks (9.0 million shares) and $413 million of dividends; the Board added a $1.0 billion repurchase authorization on May 21, 2026.
- Principal debt declined to $2.5 billion after a $750 million repayment; cash and short-term investments were $3.58 billion.
- Two distributors accounted for 43% of fiscal 2026 net revenues, and the filing cites an ongoing ERP implementation that disrupted order processing and invoicing.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2026, NetApp kept $0.18.
- Revenue$6.92B100.0%
- Cost of revenue−$2.03B29.3%
- Gross profit$4.90B70.7%
- Operating costs−$3.23B46.6%
- Operating income$1.67B24.2%
- Interest, other & tax−$398.0M5.7%
- Net income$1.28B18.4%
Where FY2026 revenue went
$6.92B- Other operating costs: $2.23B, 32% of revenue
- Cost of revenue: $2.03B, 29% of revenue
- Net income: $1.28B, 18% of revenue
- R&D: $991.0M, 14% of revenue
- Interest, other & tax: $398.0M, 5.7% of revenue
Kept 18% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2026filed June 5, 2026Financial Statements
FY2026 against FY2025
| Line item | FY2026FY2025 | Change |
|---|---|---|
| Revenue | $6.92B$6.57B | +5.4% |
| Cost of Revenue | $2.03B$1.96B | +3.4% |
| Gross Profit | $4.90B$4.61B | +6.2% |
| R&D Expenses | $991.00M$1.01B | −2.1% |
| Operating Expenses | $3.23B$3.28B | −1.6% |
| Operating Income | $1.67B$1.34B | +25.2% |
| Net Income | $1.28B$1.19B | +7.6% |
| EPS (Basic) | $6.41$5.81 | +10.3% |
| EPS (Diluted) | $6.35$5.67 | +12.0% |
| Shares Outstanding (Basic) | 199.00M204.00M | −2.5% |
| Shares Outstanding (Diluted) | 201.00M209.00M | −3.8% |
05—Questions
Frequently Asked Questions
How did NetApp's profitability change in fiscal 2026?
Net income rose to $1.28 billion from $1.19 billion, and income from operations rose to $1.67 billion from $1.34 billion. Operating margin was 24% of net revenues, up from 20%, primarily due to higher net revenues. Fiscal 2025 income tax was reduced by an IRS examination benefit, so the tax provision comparison is not like-for-like.
What pressures on gross margin does the filing identify?
Management reports inflationary pressure and supply chain constraints beginning in the second half of fiscal 2026, causing higher memory and other component costs. Hybrid Cloud product gross margins declined two percentage points as a result. NetApp raised prices in the fourth quarter of fiscal 2026 and expects component costs to remain elevated near term.
How much did NetApp return to shareholders and what remains authorized?
In fiscal 2026 NetApp repurchased 9.0 million shares for $950 million and paid $413 million in dividends. As of April 24, 2026, $0.5 billion remained under the repurchase program, and the Board authorized an additional $1.0 billion on May 21, 2026. A $0.52 per share dividend was declared payable July 29, 2026.
How concentrated is NetApp's customer base?
Two customers, both distributors, accounted for 43% of fiscal 2026 net revenues, with Customer A at 22% and Customer B at 21%. The filing notes that reseller agreements generally do not require minimum purchases, so the loss or reduction of these relationships could materially affect results.
06—Continue