Revenue growth has accelerated to 12.5% in 2026Q4, while the company maintains structural resilience with gross margins consistently exceeding 70.1%.
| Metric | Apr'26 | Apr'25 | Apr'24 | Apr'23 | Apr'22 | Apr'21 | Apr'20 | Apr'19 | Apr'18 | Apr'17 | Apr'16 | Apr'15 | Apr'14 | Apr'13 | Apr'12 | Apr'11 | Apr'10 | Apr'09 | Apr'08 | Apr'07 | Apr'06 | Apr'05 | Apr'04 | Apr'03 | Apr'02 | Apr'01 | Apr'00 | Apr'99 | Apr'98 | Apr'97 |
|---|
| Sales/Revenue | 6.92B | 6.57B | 6.27B | 6.36B | 6.32B | 5.74B | 5.41B | 6.15B | 5.91B | 5.52B | 5.55B | 6.12B | 6.33B | 6.33B | 6.23B | 5.12B | 3.93B | 3.41B | 3.3B | 2.8B | 2.07B | 1.6B | 1.17B | 892.07M | 798.37M | 1.01B | 579.3M | 289.42M | 166.16M | 93.33M |
| Revenue Growth % | 5.37% | 4.85% | -1.48% | 0.7% | 9.99% | 6.13% | -11.94% | 3.98% | 7.1% | -0.49% | -9.42% | -3.2% | -0.12% | 1.59% | 21.68% | 30.3% | 15.41% | 3.13% | 17.79% | 35.7% | 29.3% | 36.56% | 31.19% | 11.74% | -20.65% | 73.69% | 100.16% | 74.18% | 78.03% | 100.15% |
| Cost of Goods Sold | 2.03B | 1.96B | 1.83B | 2.15B | 2.1B | 1.93B | 1.79B | 2.2B | 2.21B | 2.13B | 2.17B | 2.29B | 2.41B | 2.57B | 2.52B | 1.79B | 1.41B | 1.42B | 1.29B | 1.1B | 810M | 623.08M | 465.79M | 345.64M | 317.85M | 401.71M | 235.85M | 118.12M | 67.55M | 38.06M |
| COGS % of Revenue | 29.26% | 29.81% | 29.28% | 33.84% | 33.21% | 33.58% | 33.06% | 35.81% | 37.42% | 38.58% | 39.18% | 37.39% | 38.04% | 40.61% | 40.43% | 35.02% | 35.92% | 41.58% | 39.05% | 39.22% | 39.2% | 38.99% | 39.8% | 38.75% | 39.81% | 39.92% | 40.71% | 40.81% | 40.65% | 40.78% |
| Gross Profit | 4.9B | 4.61B | 4.43B | 4.21B | 4.22B | 3.81B | 3.62B | 3.94B | 3.7B | 3.39B | 3.37B | 3.83B | 3.92B | 3.76B | 3.71B | 3.33B | 2.52B | 1.99B | 2.01B | 1.7B | 1.26B | 975.05M | 704.52M | 546.43M | 480.52M | 604.48M | 343.45M | 171.3M | 98.61M | 55.27M |
| Gross Margin % | 70.74% | 70.19% | 70.72% | 66.16% | 66.79% | 66.42% | 66.94% | 64.19% | 62.58% | 61.42% | 60.82% | 62.61% | 61.96% | 59.39% | 59.57% | 64.98% | 64.08% | 58.42% | 60.95% | 60.78% | 60.8% | 61.01% | 60.2% | 61.25% | 60.19% | 60.08% | 59.29% | 59.19% | 59.35% | 59.22% |
| Gross Profit Growth % | 6.2% | 4.06% | 5.32% | -0.26% | 10.62% | 5.3% | -8.16% | 6.65% | 9.12% | 0.5% | -12.01% | -2.19% | 4.2% | 1.28% | 11.56% | 32.13% | 26.6% | -1.17% | 18.12% | 35.66% | 28.86% | 38.4% | 28.93% | 13.71% | -20.51% | 76% | 100.5% | 73.71% | 78.42% | 111.97% |
| Operating Expenses | 3.23B | 3.28B | 3.22B | 3.19B | 3.06B | 2.78B | 2.68B | 2.72B | 2.79B | 2.68B | 2.96B | 3.12B | 3.1B | 3.15B | 2.96B | 2.5B | 2.07B | 1.89B | 1.7B | 1.4B | 943.29M | 722.13M | 539.81M | 457.56M | 469.36M | 468.13M | 238.09M | 116.17M | 65.96M | 41.67M |
| OpEx % of Revenue | 46.61% | 49.85% | 51.36% | 50.16% | 48.48% | 48.47% | 49.48% | 44.32% | 47.23% | 48.61% | 53.37% | 50.9% | 48.96% | 49.77% | 47.44% | 48.74% | 52.61% | 55.44% | 51.45% | 50.04% | 45.65% | 45.19% | 46.13% | 51.29% | 58.79% | 46.53% | 41.1% | 40.14% | 39.69% | 44.65% |
| Selling, General & Admin | 2.21B | 2.18B | 2.14B | 2.09B | 2.14B | 2B | 1.85B | 1.94B | 2.01B | 1.9B | 2.1B | 2.2B | 2.18B | 2.25B | 2.13B | 1.85B | 1.53B | 1.39B | 1.25B | 1.04B | 700.3M | 551.08M | 407.94M | 344.7M | 331.74M | 335.46M | 176.02M | 85.72M | 49.31M | 28.4M |
| SG&A % of Revenue | 31.96% | 33.11% | 34.08% | 32.91% | 33.81% | 34.84% | 34.15% | 31.48% | 33.99% | 34.5% | 37.85% | 35.89% | 34.45% | 35.49% | 34.15% | 36.08% | 38.98% | 40.8% | 37.76% | 37.2% | 33.89% | 34.48% | 34.86% | 38.64% | 41.55% | 33.34% | 30.39% | 29.62% | 29.67% | 30.43% |
| Research & Development | 991M | 1.01B | 1.03B | 956M | 881M | 881M | 847M | 827M | 783M | 779M | 861M | 919.3M | 917.3M | 904.2M | 828.2M | 648.6M | 535.7M | 498.5M | 452.2M | 385.36M | 242.99M | 171.05M | 131.86M | 112.86M | 116.72M | 120.94M | 62.06M | 30.46M | 16.65M | 8.97M |
| R&D % of Revenue | 14.31% | 15.4% | 16.42% | 15.03% | 13.94% | 15.34% | 15.65% | 13.46% | 13.25% | 14.11% | 15.52% | 15.01% | 14.5% | 14.28% | 13.29% | 12.66% | 13.63% | 14.63% | 13.69% | 13.74% | 11.76% | 10.7% | 11.27% | 12.65% | 14.62% | 12.02% | 10.71% | 10.52% | 10.02% | 9.61% |
| Other Operating Expenses | 24M | 88M | 54M | 141M | 46M | -98M | -17M | -38M | 0 | 8M | -3M | -3.7M | 7.6M | 8.3M | 2.4M | 5.8M | 0 | 0 | 0 | -25.34M | 0 | 0 | 20K | 0 | 20.89M | 11.73M | 0 | 0 | 0 | 4.3M |
| Operating Income | 1.7B | 1.34B | 1.21B | 1.02B | 1.16B | 1.03B | 945M | 1.22B | 1.13B | 665M | 348M | 716.5M | 734.3M | 607.8M | 746.5M | 824.3M | 488.4M | 47.17M | 313.6M | 301.24M | 308.29M | 253.19M | 158.46M | 87.61M | -1.06M | 109.66M | 105.37M | 55.13M | 32.66M | 3.08M |
| Operating Margin % | 24.48% | 20.34% | 19.37% | 16% | 18.31% | 17.95% | 17.46% | 19.87% | 19.03% | 12.05% | 6.27% | 11.7% | 11.61% | 9.6% | 11.98% | 16.09% | 12.42% | 1.38% | 9.49% | 10.74% | 14.92% | 15.84% | 13.54% | 9.82% | -0.13% | 10.9% | 18.19% | 19.05% | 19.65% | 3.3% |
| Operating Income Growth % | 26.78% | 10.13% | 19.25% | -12.01% | 12.22% | 9.1% | -22.6% | 8.53% | 69.17% | 91.09% | -51.43% | -2.42% | 20.81% | -18.58% | -9.44% | 68.78% | 935.29% | -84.96% | 4.1% | -2.29% | 21.76% | 59.78% | 80.88% | 8349.15% | -100.97% | 4.07% | 91.14% | 68.8% | 959.29% | -48.62% |
| EBITDA | 1.9B | 1.58B | 1.47B | 1.32B | 1.35B | 1.29B | 1.19B | 1.42B | 1.32B | 891M | 616M | 1.02B | 1.07B | 952.4M | 1.04B | 989.9M | 654.4M | 217.71M | 457.78M | 412.07M | 390.09M | 318.81M | 217.92M | 145.02M | 64.23M | 151.92M | 121.08M | 63.27M | 38.21M | 5.95M |
| EBITDA Margin % | 27.36% | 24.04% | 23.44% | 20.73% | 21.38% | 22.46% | 21.97% | 23.07% | 22.38% | 16.14% | 11.11% | 16.72% | 16.89% | 15.04% | 16.68% | 19.32% | 16.65% | 6.39% | 13.86% | 14.69% | 18.88% | 19.95% | 18.62% | 16.26% | 8.04% | 15.1% | 20.9% | 21.86% | 22.99% | 6.37% |
| EBITDA Growth % | 19.94% | 7.56% | 11.37% | -2.37% | 4.73% | 8.49% | -16.15% | 7.18% | 48.48% | 44.64% | -39.83% | -4.18% | 12.18% | -8.39% | 5.02% | 51.27% | 200.58% | -52.44% | 11.09% | 5.64% | 22.36% | 46.3% | 50.27% | 125.78% | -57.72% | 25.47% | 91.36% | 65.61% | 542.23% | -19.46% |
| D&A (Non-Cash Add-back) | 200M | 243M | 255M | 301M | 194M | 259M | 244M | 197M | 198M | 226M | 268M | 307.2M | 334.1M | 344.6M | 293.1M | 165.6M | 166M | 170.54M | 144.18M | 110.83M | 81.8M | 65.62M | 59.45M | 57.41M | 65.29M | 42.26M | 15.71M | 8.15M | 5.55M | 2.87M |
| EBIT | 1.7B | 1.45B | 1.33B | 1.13B | 1.17B | 1.04B | 999M | 1.33B | 1.26B | 673M | 394M | 716M | 776.8M | 658.3M | 787.1M | 870M | 521.1M | 71.69M | 314.05M | 301.17M | 313.17M | 252.92M | 164.71M | 88.86M | 11.16M | 136.34M | 105.37M | 55.13M | 32.66M | 13.6M |
| Net Interest Income | 7M | 48M | 48M | 2M | -66M | -65M | -7M | 30M | 17M | -8M | -3M | -5M | -1M | -49.5M | -36.5M | -36M | -42.9M | -5.8M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 88M | 112M | 112M | 69M | 7M | 9M | 48M | 88M | 79M | 44M | 46M | 37M | 35M | 42.2M | 38.2M | 39.9M | 31.2M | 57.61M | 0 | 0 | 0 | 24.25M | 13.7M | 12.21M | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 81M | 64M | 64M | 67M | 73M | 74M | 55M | 58M | 62M | 52M | 49M | 42M | 36M | 91.7M | 74.7M | 75.9M | 74.1M | 26.86M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -47M | 46M | 49M | 48M | -62M | -69M | -1M | 47M | 41M | 0 | -3M | -3.7M | 6.4M | -41.2M | -34.1M | -30.2M | -41.4M | -2.35M | 69.1M | 58.49M | 41.98M | 23.04M | 11.99M | 10.21M | 3.6M | 23.35M | 9.04M | 1.86M | 889K | 960K |
| Pretax Income | 1.65B | 1.38B | 1.26B | 1.07B | 1.09B | 962M | 944M | 1.27B | 1.17B | 665M | 345M | 712.8M | 740.7M | 566.6M | 712.4M | 794.1M | 447M | 44.83M | 382.7M | 359.73M | 350.27M | 276.23M | 170.45M | 97.81M | 2.53M | 133.01M | 114.41M | 56.99M | 33.55M | 4.04M |
| Pretax Margin % | 23.8% | 21.04% | 20.15% | 16.76% | 17.33% | 16.75% | 17.44% | 20.63% | 19.73% | 12.05% | 6.22% | 11.64% | 11.71% | 8.95% | 11.43% | 15.5% | 11.37% | 1.32% | 11.59% | 12.83% | 16.95% | 17.28% | 14.56% | 10.96% | 0.32% | 13.22% | 19.75% | 19.69% | 20.19% | 4.33% |
| Income Tax | 372M | 197M | 277M | -208M | 158M | 232M | 125M | 99M | 1.09B | 156M | 116M | 152.9M | 103.2M | 61.3M | 107M | 121M | 46.6M | -41.72M | 72.96M | 61.99M | 83.82M | 50.47M | 18.37M | 21.34M | -500K | 58.12M | 40.61M | 21.38M | 12.58M | 3.79M |
| Effective Tax Rate % | 22.57% | 14.24% | 21.93% | -19.51% | 14.43% | 24.12% | 13.24% | 7.81% | 93.48% | 23.46% | 33.62% | 21.45% | 13.93% | 10.82% | 15.02% | 15.24% | 10.43% | -93.06% | 19.06% | 17.23% | 23.93% | 18.27% | 10.78% | 21.82% | -19.74% | 43.7% | 35.5% | 37.51% | 37.51% | 93.82% |
| Net Income | 1.28B | 1.19B | 986M | 1.27B | 937M | 730M | 819M | 1.17B | 76M | 509M | 229M | 559.9M | 637.5M | 505.3M | 605.4M | 673.1M | 400.4M | 86.55M | 309.74M | 297.74M | 266.45M | 225.75M | 152.09M | 76.47M | 3.03M | 74.89M | 73.79M | 35.61M | 20.96M | 250K |
| Net Margin % | 18.43% | 18.05% | 15.73% | 20.03% | 14.83% | 12.71% | 15.13% | 19.02% | 1.29% | 9.22% | 4.13% | 9.14% | 10.08% | 7.98% | 9.71% | 13.14% | 10.18% | 2.54% | 9.38% | 10.62% | 12.89% | 14.13% | 13% | 8.57% | 0.38% | 7.44% | 12.74% | 12.31% | 12.62% | 0.27% |
| Net Income Growth % | 7.59% | 20.28% | -22.61% | 35.97% | 28.36% | -10.87% | -29.94% | 1438.16% | -85.07% | 122.27% | -59.1% | -12.17% | 26.16% | -16.53% | -10.06% | 68.11% | 362.65% | -72.06% | 4.03% | 11.74% | 18.03% | 48.44% | 98.88% | 2421.33% | -95.95% | 1.48% | 107.21% | 69.87% | 8286% | -96.21% |
| Net Income (Continuing) | 1.28B | 1.19B | 986M | 1.27B | 937M | 730M | 819M | 1.17B | 116M | 509M | 229M | 559.9M | 637.5M | 505.3M | 605.4M | 673.1M | 400.4M | 86.55M | 309.74M | 297.74M | 266.45M | 225.75M | 152.09M | 76.47M | 3.03M | 74.89M | 73.79M | 35.61M | 20.96M | 250K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 6.36 | 5.67 | 4.63 | 5.79 | 4.09 | 3.23 | 3.52 | 4.51 | 0.28 | 1.81 | 0.77 | 1.75 | 1.83 | 1.37 | 1.58 | 1.71 | 1.13 | 0.19 | 0.86 | 0.77 | 0.69 | 0.59 | 0.42 | 0.22 | 0.01 | 0.21 | 0.21 | 0.11 | 0.07 | 0.00 |
| EPS Growth % | 12.17% | 22.46% | -20.03% | 41.56% | 26.63% | -8.24% | -21.95% | 1510.71% | -84.53% | 135.06% | -56% | -4.37% | 33.58% | -13.29% | -7.6% | 51.33% | 494.74% | -77.91% | 11.69% | 11.59% | 16.95% | 40.48% | 90.91% | 2100% | -95.24% | 0% | 90.91% | 51.72% | - | -97% |
| EPS (Basic) | 6.43 | 5.81 | 4.74 | 5.87 | 4.20 | 3.29 | 3.56 | 4.60 | 0.28 | 1.85 | 0.78 | 1.77 | 1.87 | 1.40 | 1.66 | 1.87 | 1.18 | 0.20 | 0.88 | 0.80 | 0.72 | 0.63 | 0.44 | 0.23 | 0.01 | 0.23 | 0.25 | 0.13 | 0.08 | 0.00 |
| Diluted Shares Outstanding | 199M | 209M | 213M | 220M | 229M | 226M | 233M | 259M | 276M | 281M | 297M | 320.7M | 347.9M | 368M | 384.3M | 393.7M | 353.2M | 334.6M | 361.09M | 388.45M | 388.38M | 382.63M | 362.11M | 350.12M | 350.5M | 359.82M | 345.17M | 311.72M | 287.61M | 275.22M |
| Basic Shares Outstanding | 197M | 204M | 208M | 217M | 223M | 222M | 230M | 254M | 268M | 275M | 294M | 315.5M | 340.3M | 361.5M | 363.9M | 360.9M | 339.6M | 330.3M | 351.68M | 371.2M | 371.06M | 358.34M | 345.65M | 337.65M | 331.64M | 320.44M | 299.37M | 273.74M | 259.66M | 243.91M |
| Dividend Payout Ratio | 32.37% | 35.75% | 42.19% | 33.91% | 47.6% | 58.49% | 53.6% | 34.47% | 281.58% | 40.86% | 91.7% | 37.04% | 31.73% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Hyperscaler vertical integration
According to the latest quarterly financial data, NetApp's revenue growth has notably accelerated to 12.5% in 2026Q4, marking a significant departure from the low single-digit growth rates observed throughout the 2025 fiscal year and early 2026, suggesting a potential inflection in enterprise demand for data management.
The jump to $1.9 billion in revenue during the most recent quarter indicates that the company's hybrid cloud strategy may be gaining traction with enterprise customers. This acceleration warrants further investigation into whether this is a sustainable shift driven by AI-related infrastructure refreshes or a temporary cyclical recovery.
As reported in financial statements, NetApp has consistently maintained gross margins above 70%, with the 2026Q4 figure of 70.1% highlighting the company's ability to preserve premium pricing power despite the ongoing transition toward consumption-based cloud services and potential fluctuations in underlying hardware component costs.
The stability of these margins suggests that the software-defined nature of the ONTAP operating system provides a significant moat against commodity hardware pricing pressures. Investors should monitor if this margin profile can be sustained as the revenue mix shifts further toward lower-margin public cloud consumption models.
Based on reported figures, operating income reached $531 million in 2026Q4, representing a 27.3% operating margin that demonstrates clear operating leverage as the company scales its revenue base while keeping growth in SG&A and R&D expenses relatively contained compared to the top-line expansion.
The expansion of operating margins from 19.8% in 2026Q1 to 27.3% in 2026Q4 suggests that management is successfully achieving efficiencies in its sales and research operations. This trend implies that the company is beginning to realize the benefits of its software-heavy business model as it reaches greater scale.
Analysis of the income statement reveals that stock-based compensation reached $100 million in 2026Q4, a persistent non-cash expense that continues to impact net income quality and warrants careful adjustment when evaluating the company's true underlying profitability and free cash flow generation capabilities for shareholders.
While net income has shown strong growth, the consistent level of stock-based compensation suggests that dilution remains a factor for investors to consider. The impact of these non-cash charges on the bottom line appears significant enough that it may obscure the true operational efficiency of the business.
Despite current profitability, the company faces a structural risk as hyperscalers like AWS and Azure continue to develop proprietary storage tiers, which may eventually pressure NetApp's premium pricing and force a shift toward lower-margin service models, potentially threatening the long-term sustainability of current operating margins.
The reliance on hyperscaler partnerships creates a dependency that could limit future pricing power if cloud providers decide to commoditize the storage management layer. Investors should monitor whether the company's first-party status remains a durable advantage or if it becomes a vulnerability in the face of platform-level competition.
Quick answers to the most common questions about buying NTAP stock.
For fiscal year 2026, NetApp, Inc. (NTAP) reported total revenue of $6.92B. This represents a 7319.7% increase compared to $93.3M in 1997.
NetApp, Inc. (NTAP) is profitable, generating $1.28B in net income for the fiscal year ending 2026 with a net profit margin of 18.4%.
NetApp, Inc. (NTAP) reported an operating income of $1.70B, resulting in an operating profit margin of 24.5%. This margin reflects the operational efficiency of the business before interest and taxes.
NetApp, Inc. (NTAP) generated $4.90B in gross profit for the year, representing a gross profit margin of 70.7%. This demonstrates the company's core pricing power and production efficiency.