NetApp raises fiscal 2027 outlook after record first quarter

NetApp (NASDAQ: NTAP ) reported first-quarter financial results on Wednesday.

The transcript from the company's first-quarter earnings call has been provided below.

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Access the full call at Summary NetApp Inc. delivered a strong start to fiscal year 2027, with Q1 revenue increasing by 30% year over year to $2.03 billion, and gross profit reaching $1.43 billion.

The company experienced robust growth across all segments, particularly in public cloud, all-flash, and Keystone revenues, and noted a 47% year-over-year increase in all-flash array revenue.

NetApp Inc. raised its full-year guidance for fiscal 2027, expecting revenue to range from $7.975 billion to $8.225 billion, and EPS between $9.73 and $10.03.

Strategic initiatives include acquisitions aimed at strengthening AI and cloud capabilities, with recent purchases of Data Pelago and Jetstream.

Management highlighted the company's growing role in AI and cloud adoption, with significant wins in AI modernization deals and new customer acquisitions in diverse sectors.

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I would now like to turn the conference over to Chris Newton, Vice President, Investor Relations.

Please go ahead.

Chris Newton, Vice President, Investor Relations Hi everyone.

Thanks for joining our Q1 FY27 earnings call.

With me today are our CEO George Kurian and CFO Wissam Jabra.

This call is being webcast live and will be available for replay on our website at netapp.com.

During today's call we will make forward-looking statements and projections with respect to our financial outlook and future prospects, including without limitation our guidance for the second quarter and fiscal year 2027, our expectations regarding future revenue, profitability and shareholder returns, the expected benefits from our acquisitions and partnerships, and other growth initiatives and strategies.

These statements are subject to various risks and uncertainties which may cause our actual results to differ materially.

For more information, please refer to the documents we file from time to time with the SEC and on our website, including our most recent Form 10-K and Form 10-Q.

We disclaim any obligation to update our forward-looking statements and projections during the call.

All financial measures presented will be non-GAAP unless otherwise indicated.

Reconciliations of GAAP to non-GAAP measures are available on our website.

I'll now turn the call over to George.

George Kurian, CEO Thanks, Chris.

Good afternoon, everyone.

Thank you for joining us today.

We delivered a stellar start to the year, exceeding our Q1 guidance on every metric and delivering a record-setting first quarter.

Revenue increased 30% year over year to $2.03 billion.

Our disciplined approach converted robust top-line growth into significant profitability even in a challenging component cost environment, with gross profit growing 29% to a record $1.43 billion, operating margin reaching 31.9% and EPS up 66% from Q1 a year ago.

Adjusting for the additional week in Q1, our performance still stands as one of the best in the company's history.

This quarter's achievements reflect more than just strong execution.