NetApp, Inc. (NASDAQ: NTAP), the Intelligent Data Infrastructure company based in San Jose, California, reported record first quarter fiscal 2027 results on September 2, 2026. Net revenue for the quarter, which ended July 31, 2026, was $2.03 billion, up 30% from $1.56 billion a year earlier.
The results follow a period in which enterprise technology vendors have pointed to customer investment in artificial intelligence infrastructure as a source of revenue growth. NetApp's non-GAAP billings rose 36% to $2.06 billion, compared with 30% revenue growth.
#NetApp's All-Flash and Public Cloud Segments Post Records
All-flash array net revenue reached $1.3 billion in the quarter, up 47% from $893 million a year earlier, the company said, marking a company record.
Public Cloud segment net revenue rose 28% to $206 million from $161 million in the prior-year quarter, also a company record, NetApp said.
Hybrid Cloud segment revenue, which includes product, support and professional and other services, increased 30% to $1.82 billion from $1.4 billion a year earlier, according to the earnings release.
"NetApp delivered a record-setting start to the year, exceeding guidance on every metric and achieving our strongest first quarter ever," George Kurian, Chief Executive Officer, said in the earnings release. Kurian said the results reflect growing customer adoption of the NetApp Platform for AI and hybrid multi-cloud initiatives.
#NetApp Raises Full-Year Revenue and Earnings Guidance
NetApp raised its financial guidance for the second quarter and full fiscal year 2027. For the second quarter, the company said it expects net revenue of $2.03 billion to $2.18 billion and non-GAAP earnings per share of $2.54 to $2.64.
For the full fiscal year, NetApp guided to net revenue of $7.98 billion to $8.23 billion, along with non-GAAP earnings per share of $9.73 to $10.03, the company said in its outlook.
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#NetApp Acquired AI Infrastructure Company DataPelago
NetApp said it acquired DataPelago, Inc., an AI data infrastructure company, during the quarter to help customers simplify and accelerate AI deployment at scale, according to the earnings release.
The company also appointed Alvaro Celis as Chief Partner and Ecosystem Officer to lead its partner ecosystem programs, NetApp said.
GAAP operating margin was 23.9% for the quarter, up from 19.8% a year earlier. Non-GAAP operating margin was 31.9%, compared with 25.7% in the prior-year period, the company reported.
Net income on a GAAP basis was $375 million, or $1.88 per diluted share, up from $233 million, or $1.15 per share, a year earlier. Non-GAAP net income was $515 million, or $2.58 per diluted share, compared with $314 million, or $1.55 per share, in the prior-year quarter.
NetApp said its board declared a quarterly dividend of $0.52 per share, payable October 28, 2026, to shareholders of record as of October 9, 2026.
Revenue by geography shifted slightly during the quarter. The Americas accounted for 48% of net revenue, down from 51% a year earlier, while EMEA rose to 33% from 32% and Asia Pacific rose to 19% from 17%, according to the company's supplemental data.
NetApp operates in the enterprise data storage and cloud infrastructure market, where vendors have increasingly tied product roadmaps to AI workload support in recent quarters.
NetApp cautioned that its forward-looking guidance is subject to risks, including macroeconomic conditions such as inflation, interest rates and tariffs, among others, and said execution of its strategy and broader market conditions remain factors that could affect whether it meets its raised guidance for the remainder of fiscal 2027.