NetApp, the intelligent data infrastructure specialist, has announced strong financial results for the third quarter of its 2026 fiscal year.
Led by record all-flash storage revenue and a growing leadership in enterprise AI market, the company saw its net revenue rise to $1.71 billion, a 4% year-over-year increase. Net income rose 12% to $334 million.
The results underscore a structural shift in the market, with companies transitioning, en masse, from traditional hard drives to blazing-fast flash memory, to realize their AI ambitions.
Flash and Cloud as Growth Engines
The highlight of the third quarter is all-flash array revenue, which grew 11% to a record $1 billion. This puts NetApp on track for annual revenue of over $4.2 billion for this product line alone.
The performance within the public cloud was also noteworthy. Public Cloud revenue of $174 million in the third quarter was driven by first-party and marketplace storage services, which grew 27% year-over-year. This means that customers are increasingly using NetApp technology directly through cloud giants like Microsoft, Google, and AWS.
“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,” said George Kurian, Chief Executive Officer, NetApp. “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.”
Financial Key Figures (Q3 FY26)
Earnings per share (EPS): Non-GAAP earnings reached a record $2.12, up 11%.
Billings: Billings of $1.89 billion in the third quarter grew 10% year-over-year, the ninth consecutive quarter of year-over-year growth
Operating Margin: The company achieved a record non-GAAP margin of 31.1%, indicating highly efficient operations.
Shareholders: $303 million was returned to stockholders through share repurchases and cash dividends.
Outlook: AI Remains the Driving Force
NetApp has set a high bar for the full fiscal year 2026. Annual revenue is expected to be between $6.77 billion and $6.92 billion. For the upcoming fourth quarter, the San Jose, California-based company is targeting further profit growth, with EPS expected to be between $2.21 and $2.31.
