NetApp Posts $334M Profit in Q3 FY2026 as Revenue Climbs 4.4% to $1.71B

NetApp, Inc. (NASDAQ: NTAP), a data infrastructure and cloud storage company, reported net income of $334 million for the three months ending January 23, 2026, up 11.7% from $299 million in the prior-year quarter. Revenue for the period reached $1.71 billion, a 4.4% increase from $1.64 billion in Q3 FY2025. Read more earnings reports.

Diluted earnings per share rose to $1.67 from $1.44 year-over-year. Operating income climbed 19.9% to $434 million compared to $362 million in the same quarter last year.

For the nine months ending January 23, 2026, NetApp posted net income of $872 million on revenue of $4.98 billion, compared to net income of $846 million on revenue of $4.84 billion in the first nine months of FY2025. Nine-month diluted EPS increased to $4.32 from $4.03.

Revenue Breakdown

Product revenue for Q3 totaled $786 million, up from $758 million in the prior-year quarter. Support revenue reached $654 million versus $621 million, while professional and other services revenue climbed to $99 million from $88 million. Strategic alliances contributed $174 million, flat with the year-ago period.

Gross profit margin expanded to 70.6% in Q3 from 69.8% a year earlier. Gross profit reached $1.21 billion compared to $1.15 billion in Q3 FY2025.

Operating Performance

Operating expenses declined 1.0% to $775 million from $783 million year-over-year. Research and development expenses dropped to $237 million from $247 million, while cost of goods sold increased to $504 million from $496 million.

Operating income margin improved to 25.3% from 22.1% in the prior-year quarter. For the nine-month period, operating margin reached 22.9% versus 20.4% a year earlier.

Balance Sheet and Cash Flow

Total assets stood at $9.97 billion as of January 23, 2026, down from $10.82 billion at fiscal year-end April 25, 2025. Cash and cash equivalents declined to $1.63 billion from $2.74 billion. Short-term investments increased to $1.38 billion from $1.10 billion.

Long-term debt remained relatively flat at $2.49 billion compared to $2.49 billion at the prior fiscal year-end. Total stockholders' equity rose to $1.16 billion from $1.04 billion.

Cash from operations for the nine months totaled $1.12 billion, up from $831 million in the year-ago period. Cash used in financing activities reached $1.82 billion, compared to $1.68 billion in the prior-year period.

Shares outstanding declined to 198 million from 201 million at fiscal year-end, reflecting the company's ongoing share repurchase activity.

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