NetApp Reports 4% Revenue Growth to $1.713 Billion in Third Quarter

NetApp, Inc. reported a net revenue of $1.713 billion for the third quarter ending January 23, 2026, marking a 4% increase from $1.641 billion in the same period last year. For the nine months ending January 23, 2026, total revenues reached $4.977 billion, up 3% from $4.840 billion in the prior year. The company's product revenues increased to $786 million in the third quarter, a 4% rise from $758 million, while service revenues also saw a 5% increase to $927 million from $883 million. The net income for the quarter was $334 million, or $1.67 per diluted share, compared to $299 million, or $1.44 per diluted share, in the previous year.

In terms of operational changes, NetApp's total assets decreased to $9.971 billion as of January 23, 2026, down from $10.823 billion a year earlier. The decline was primarily attributed to a reduction in cash and cash equivalents, which fell to $1.629 billion from $2.742 billion. The company also reported a decrease in current liabilities, which dropped to $3.594 billion from $4.662 billion, reflecting improved management of accounts payable and accrued expenses. The total stockholders' equity increased to $1.158 billion, up from $1.040 billion, driven by retained earnings and stock repurchases.

Strategically, NetApp has continued to focus on its Hybrid Cloud and Public Cloud segments, with the latter generating $174 million in revenue for the third quarter, consistent with the previous year. The company has also been active in its stock repurchase program, repurchasing 7 million shares for $750 million during the first nine months of fiscal 2026. Additionally, NetApp declared a cash dividend of $0.52 per share, payable on April 22, 2026, reflecting its commitment to returning value to shareholders.

Looking ahead, NetApp anticipates continued growth in both product and service revenues, supported by increased demand for its cloud offerings and ongoing investments in research and development. The company expects to recognize approximately 48% of its remaining performance obligations, valued at $5.1 billion, as revenue within the next 12 months. However, management noted that fluctuations in market conditions and operational performance could impact future cash flows and overall financial results. The effective tax rate for the nine months ending January 23, 2026, was reported at 22.8%, up from 17.8% in the prior year, reflecting changes in tax legislation and the company's earnings profile.