NetApp Inc. Stock

NetApp, Inc. (NTAP) — FY2026 Annual Report

NetApp appears to have delivered a robust year, with net income reaching a five-year high of roughly $1.28 billion and operating income climbing meaningfully. While the headline segment figure of $6.24 billion reflects modest growth over the prior year, the more comprehensive net revenue measure of $6.93 billion suggests the underlying business continued to expand. The overall trajectory could be characterized as steady profitability improvement rather than dramatic top-line acceleration.

What stands out most on the profitability side is the notable widening of operating margins, which appear to have climbed from around 23% to nearly 27%, marking a continuation of a multi-year improvement trend. This may reflect disciplined cost management, as operating expenses stayed essentially flat year-over-year despite higher revenue, with research and development spending actually declining slightly. Gross margins have remained remarkably stable in the high-60s range, though it is worth noting that service cost of revenue fell even as service revenue grew, which could suggest improving efficiency in that mix. The Public Cloud segment, at roughly $688 million, continues to grow but at a more measured pace than the company's cloud positioning narrative might imply.