NetApp Inc (NASDAQ:NTAP) stock fell 2.55% (As on November 22, 12:03:19 AM UTC-4, Source: Google Finance) though the company delivered a solid earnings and revenue beat today before raising its guidance for both metrics, saying it’s seeing strong demand for data storage services as companies upgrade their cloud infrastructure. NetApp reported net income for the second quarter of $299 million, rising from $233 million in the same period one year earlier. Hybrid Cloud segment revenue was $1.49 billion, compared to $1.41 billion in the second quarter of fiscal year 2024. Public Cloud segment revenue was $168 million, compared to $154 million in the second quarter of fiscal year 2024. Billings was $1.59 billion, compared to $1.45 billion in the second quarter of fiscal year 2024; a year-over-year increase of 9%. All-flash array ARR was $3.8 billion, compared to $3.2 billion in the second quarter of fiscal year 2024; a year-over-year increase of 19%. Cash, cash equivalents and investments was $2.22 billion at the end of the second quarter of fiscal year 2025. Cash provided by operations generated was $105 million, compared to $135 million in the second quarter of fiscal year 2024.
Meanwhile, NetApp unveiled new integrations with NVIDIA AI software, combining NVIDIA NeMo Retriever and NIM microservices with intelligent data infrastructure to accelerate enterprise retrieval-augmented generation (RAG) and to power agentic AI. NetApp announced the expansion of its strategic partnership with Google Cloud, integrating unified data storage and intelligent services into the Google Distributed Cloud architecture.
NTAP in the second quarter of FY 25 has reported the adjusted earnings per share of $1.87, beating the analysts’ estimates for the adjusted earnings per share of $1.79. The company had reported the adjusted revenue growth of 6 percent to $1.66 billion in the second quarter of FY 25, beating the analysts’ estimates for revenue of $1.65 billion.
Looking to the current quarter, NetApp said it’s eyeing earnings of between $1.85 and $1.95 per share, the midpoint of that range well ahead of the analysts’ consensus target of $1.86. In terms of revenue, the company is looking at a range of $1.61 billion to $1.76 billion, which comes in ahead of the Street’s $1.67 billion forecast.
For fiscal 2025, NetApp said it’s increasing its earnings forecast to a range of $7.20 to $7.40 per share, up from a prior range of $7 to $7.20. It also upped its revenue guidance to a range of $6.54 billion to $6.74 billion, from $6.48 billion to $6.68 billion. Wall Street is looking for full-year earnings of $7.11 per share on sales of $6.59 billion.