NetApp closed fiscal 2026 with net revenues of $6.93 billion, up 5% year over year, and only 4% of that increase survives the constant currency adjustment.
The fourth quarter carried the year. Net revenues of $1.95 billion rose 12% year over year, or 10% in constant currency, and non-GAAP earnings per share of $2.43 rose 26%. Roughly $0.12 of that per-share figure came from foreign exchange, along with about $24 million of the quarter's net income, which the company disclosed plainly.
All-flash is doing the work. Array net revenue reached a record $1.2 billion in the quarter, up 18%, against total Hybrid Cloud segment revenue of $1.77 billion. Because that 18% outpaces the 13% posted by the Hybrid Cloud segment it sits inside, the non-flash remainder necessarily grew more slowly than the segment average.
Public Cloud is the number worth staring at. The segment set a quarterly record at $182 million, up 11%, but finished the full year at $688 million against $665 million, which is growth of 3%. That is the segment NetApp has spent years positioning as its structural growth engine, and it grew slower than the company as a whole.
"Fiscal year 2026 was a landmark year for NetApp with record results across revenue, gross profit, operating income, cash flow from operations, and free cash flow. Our industry-leading hybrid cloud, intelligent data infrastructure platform, trusted by the world’s leading organizations, is powering customers’ AI driven transformations, delivering secure, high-performance access to data wherever it resides," said George Kurian, Chief Executive Officer. Decoded, the operative word is records rather than rates: four measures set marks, and the growth behind them is mid-single-digit before currency.
Kurian continued: "We achieved our target operating margin while launching next-generation AI solutions and expanding strategic partnerships. As enterprises scale their AI ambitions, NetApp’s unified data platform and flexible offerings position us for sustained growth. I am proud of our team’s execution and excited for the opportunities ahead in fiscal year 2027 and beyond." Target operating margin is the tell there. NetApp hit a margin goal rather than exceeding it, which fits a year where free cash flow grew 40% to $1.87 billion while revenue grew 5%. That gap is cost discipline and working capital, not demand.
Guidance implies the pace holds rather than accelerates. NetApp guided fiscal 2027 net revenues to $7.325 billion to $7.575 billion and non-GAAP earnings per share to $8.70 to $9.00, against $8.13 delivered. Midpoint to midpoint that is revenue growth of about 8% and per-share growth of about 9%, on my arithmetic from the company's own figures.
The near-term guide is softer than the quarter just reported. First-quarter fiscal 2027 net revenues are guided to $1.750 billion to $1.900 billion, a midpoint below the $1.948 billion NetApp just booked, which is the seasonal step-down the company takes most years and not a reversal.
Capital return continued at scale. NetApp returned $1.36 billion to stockholders through buybacks and dividends across fiscal 2026, declared a quarterly dividend of $0.52 per share, and disclosed that its board authorized the repurchase of up to an additional $1.0 billion of common stock with no expiration date.
Bootnote. Billings, which NetApp reports at $7.21 billion for the year against $6.93 billion of revenue, is a non-GAAP measure that captures what customers committed to in the period rather than what was recognised in it. The spread is deferred revenue building on the balance sheet, which is why billings growth of 6% against revenue growth of 5% says something mildly encouraging about the next few quarters rather than about this one.
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