NetApp Beats Q1 Earnings Estimates as Revenue Surges

NetApp's fiscal first-quarter results have exceeded expectations, prompting Goldman Sachs to reaffirm its Buy rating and price target of $210.00 per share. The company's earnings per share beat both Goldman Sachs' and FactSet's consensus estimates, while revenue topped forecasts.

Gross margins reached 70.6%, landing at the high end of NetApp's guidance range, while EBIT margins of 31.9% surpassed both Goldman Sachs and consensus estimates. The strong performance has driven impressive returns for the company's shareholders, with the stock up 71% year-to-date and 58% over the past year.

Hybrid Cloud revenue grew 30% year-over-year, with all-flash storage accelerating to 47% year-over-year growth. Public Cloud revenue increased 28% year-over-year, or 19% excluding an extra week, driven by first-party sales and hyperscaler marketplace activity.