Home / Business and Economy / NetApp Forecasts Solid Q2 Revenue Despite Economic Uncertainty
NetApp Forecasts Solid Q2 Revenue Despite Economic Uncertainty
27 Aug
Summary
- NetApp forecasts Q2 revenue slightly above estimates
- Enterprises cutting cloud storage spending due to economic conditions
- NetApp reaffirms fiscal 2026 revenue forecast
On August 27, 2025, NetApp, a prominent data storage solutions provider, announced that it expects its second-quarter revenue to be marginally ahead of analysts' estimates. This comes as enterprises have been softening their spending on cloud-based storage services amid the uncertain economic climate.
Despite the challenging market conditions, NetApp reported that its first-quarter revenue slightly exceeded expectations, reaching $1.56 billion. The company's hybrid cloud segment, which accounts for nearly all of its revenue, saw a 1% increase in sales to $1.40 billion.
Looking ahead, NetApp forecasts its second-quarter net revenue to be between $1.615 billion and $1.765 billion, with the midpoint of $1.69 billion slightly above the estimated $1.68 billion. The company also expects adjusted profit to be in the range of $1.84 to $1.94 per share, with the midpoint of $1.89 slightly ahead of the estimated $1.88.
Notably, NetApp reaffirmed its fiscal 2026 revenue forecast, signaling its confidence in the company's long-term prospects despite the current economic headwinds. The company's cloud-based storage solutions are widely used by major tech giants, including Amazon Web Services, Google Cloud, and Microsoft Azure.
