TLDR
- NetApp closes FY25 strong with $6.57B revenue, driven by flash storage and cloud gains.
- Record-breaking $4.1B flash storage run rate powers NetApp’s growth.
- Q4 profit jumps as NetApp boosts AI storage, cybersecurity, and hybrid cloud tools.
- New AI, cloud, and security products reinforce NetApp’s edge in enterprise storage.
- Strategic deals with NVIDIA, Microsoft, and Google fuel NetApp’s AI-cloud expansion.
NetApp Inc. closed fiscal 2025 with strong financial results and record-breaking metrics across core business segments. Despite an early stock rally, shares fell 0.47% intraday and settled at $98.85, reflecting cautious investor sentiment. The company reported rising revenue, improved margins, and increased profitability, driven by flash storage and cloud services growth.
All-Flash Storage Drives Record Revenue and Billings
NetApp’s annual revenue reached $6.57 billion, rising 5% year-over-year, while billings surged 8% to $6.78 billion. The company’s all-flash array annualized revenue run rate climbed 14% to $4.1 billion, marking a significant segment milestone. This continued demand for all-flash storage reflects enterprise customers’ shift toward faster, more reliable infrastructure.
In Q4 alone, revenue grew 4% to $1.73 billion, with billings increasing 12% year-over-year to $2.03 billion. The Hybrid Cloud segment contributed $1.57 billion, while Public Cloud added $164 million, maintaining consistent growth. Cash generated from operations totaled $675 million in Q4, supporting capital returns and business investments.
Net income also rose sharply, with GAAP net profit reaching $1.19 billion and non-GAAP profit climbing to $1.52 billion. Non-GAAP EPS rose to $7.25 for the year, reflecting strong operational performance and cost management. NetApp returned $1.57 billion to shareholders through buybacks and dividends, reaffirming its commitment to capital return.
Product Innovation Strengthens Competitive Position
NetApp introduced multiple storage and AI-enhancing products in Q4, targeting hybrid environments and enterprise use cases. Its updated EF portfolio now includes 30TB and 60TB QLC drives designed for high-performance and large-capacity workloads. Additionally, NetApp unveiled the FAS50 array, built to balance price and performance across secondary storage needs.
Cybersecurity upgrades included post-quantum cryptography and ransomware protection, ensuring stronger data security for enterprise users. BlueXP’s AI workload enhancements now support document image insights, enabling multimodal data analysis for improved enterprise intelligence. These updates reinforce NetApp’s AI-driven storage strategy for evolving customer requirements.
Meanwhile, the company expanded Kubernetes support through Trident 25.02 and improved cloud storage with cyber vaulting features. These offerings align with demand for cloud-native and AI-ready infrastructure. NetApp’s continuous innovation supports differentiated value propositions across its storage portfolio and enterprise solutions.
Strategic Partnerships and Global Momentum Fuel AI and Cloud Expansion
NetApp deepened its enterprise relationships through new cloud and AI partnerships across top technology providers. It collaborated with NVIDIA to support DGX SuperPOD and integrated ONTAP with NVIDIA’s AI Data Platform. This partnership enables streamlined AI training and inference across hybrid environments.
Microsoft and Google Cloud also enhanced integrations with NetApp’s solutions. Microsoft expanded Azure NetApp Files with scalable performance, while Google introduced new AI tools through NetApp Volumes. These alliances position NetApp to support large-scale, data-intensive operations with intelligent storage.
Global expansion efforts continued with new distributor agreements in the U.K. and partnerships in Australia. NetApp’s distribution of Cloud Volumes ONTAP via the Azure Marketplace simplified deployments for enterprises adopting hybrid cloud. As customer demand for hybrid and AI-ready storage grows, NetApp continues to scale its ecosystem reach.
Future Outlook
NetApp completed fiscal 2025 with strong financials, robust innovation, and growing global momentum. Its performance in all-flash storage and cloud services underpinned both revenue and earnings growth. With expanded product capabilities and strategic partnerships, NetApp is positioned to drive sustainable gains into fiscal 2026.
