Netapp Inc

Strong Financial Performance: - NetApp reported record revenue of $1.73 billion for Q4 FY2025, up 4% year-over-year and a 12% increase in billings to $2.03 billion. Full-year revenue reached $6.57 billion, marking a 5% increase YOY. Key drivers included a robust all-flash storage segment and significant growth in first-party and marketplace cloud services.

Forecast and Guidance: - For FY2026, NetApp forecasts total revenue between $6.625 billion and $6.875 billion, reflecting a 3-4% growth year-over-year when excluding revenue from the recently divested Spark by NetApp Services. Q1 FY2026 guidance projects a slight decline with revenue expectations between $1.455 billion and $1.605 billion, attributing the cautious tone to macroeconomic uncertainties.

Challenges & Risks: - The company faces potential market slowdowns due to uncertain economic conditions, particularly in Europe and the US public sector. Additionally, impacts from tariffs (projected to affect gross margin by 40 to 60 basis points) and general caution in IT spending could weigh on performance.