NetApp announced its third-quarter 2026 financial results. The third quarter ended on January 23, 2026. The numbers included:
- Net revenues reached $1.71 billion for the third quarter, reflecting a 4% increase compared to the prior year. In constant currency, this growth was 2%.
- Hybrid Cloud Revenue totalled $1,539m, up 5% year-over-year, driven by Product, Support and Keystone.
- Public Cloud revenue totalled $174 million, supported by 27% year-over-year growth in first-party and marketplace storage services.
- All-flash array revenue grew 11% year-over-year to a record $1.0 billion in the third quarter, representing an annualised net revenue run rate of $4.2 billion.
- Billings rose to $1.89 billion in the third quarter, up 10% year-over-year, marking the ninth consecutive quarter of year-over-year growth.
- GAAP operating income stood at $434 million, with record non-GAAP operating income of $533 million.
- GAAP operating margin was 25.3%, while non-GAAP operating margin reached a record 31.1%.
- NetApp returned $303 million to shareholders through share repurchases and cash dividends.
George Kurian, NetApp’s Chief Executive Officer, commented, “We are pleased to announce another strong quarter with accelerating revenue and earnings growth, driven by a record quarter in all-flash array revenue, strong performance in first-party and marketplace cloud storage services, growing leadership in enterprise AI, and operational discipline.
“Our unified data platform continues to deliver exceptional customer benefits, establishing us as the intelligent data backbone for the AI era. Building on our strong portfolio and momentum, we are well-positioned to drive sustained growth and are confident in our ability to deliver long-term value for our shareholders.”
NetApp also issued guidance for the fourth quarter and full year 2026. Fourth-quarter net revenues are expected to be between $1.795 billion and $1.945 billion. Full fiscal year 2026 net revenues are expected to be between $6.772 billion and $6.922 billion.
Product Highlights
During the quarter, it announced a collaboration with AWS. Amazon S3 Access Points for Amazon FSx for NetApp ONTAP let customers use AWS AI/ML and analytics services to access FSx for ONTAP file data through the S3 API. While keeping the data available for read and write via file protocols.
Other innovations included:
- Introduction of agentic AI capabilities in Workload Factory for FSx for NetApp ONTAP, providing real-time insights for proactive detection and intelligent operational response.
- Edge-Aware Caching Insights added to Workload Factory for improved visibility and efficiency across distributed storage environments.
- Launch of Amazon EVS Best Practice Advisor in Workload Factory, offering automated VMware scans and guidance to maintain performance, security, and cost best practices.
- General availability of Azure NetApp Files single-file restore from backup, enabling the restoration of individual files without restoring entire volumes.
- Cross-zone-region replication for Azure NetApp Files is now generally available, supporting volume replication across regions and zones for disaster recovery.
- Block storage support for Google Cloud NetApp Volumes, enabling seamless migration or extension of on-premises SAN environments.
- AI-powered VS Code extension for Google Cloud NetApp Volumes, allowing developers to manage storage directly within the IDE using natural language and Copilot.
It also announced several new features in public preview.
Personnel Changes
Willem Hendrickx was appointed Senior Vice President and General Manager for EMEA and LATAM, leading regional strategy and growth. Paul Fipps, President of Global Customer Operations at ServiceNow, joined NetApp’s Board of Directors to guide strategy and customer-focused growth.
Enterprise Times: What does this mean
A solid quarter of growth, though broadly in line with inflation. The global, cloud-led, data-centric software company that provides enterprise-grade data storage, management, and protection solutions continues to innovate strongly. It is also strengthening its leadership and partnerships to maintain its position.
Kurian is excited about the potential in Q4 and beyond. He believes several deals will be closed then. Challenges remain, though, with supply chain costs increasing notably for hard disk drives and memory.
