NetApp Inc. (NASDAQ: NTAP), a provider of intelligent data infrastructure, reported its financial results for the fourth quarter and fiscal year 2025, showcasing a notable increase in key metrics and record performance across multiple segments. The company reported total revenue of $1.73 billion for the fourth quarter, up 4% year-over-year, with fiscal year 2025 revenues reaching $6.57 billion, marking a 5% year-over-year increase.

In the fourth quarter, the Hybrid Cloud segment generated $1.57 billion in revenue, a 3% increase from the same period last year. The Public Cloud segment reported revenue of $164 million, up 8% year-over-year. Net income for Q4 was $340 million, compared to $291 million in the prior year. Earnings per share (EPS) for the quarter were $1.93, an increase from $1.80 in the fourth quarter of fiscal year 2024.

Total billings for Q4 reached $2.03 billion, representing a 12% increase year-over-year. For fiscal year 2025, billings totaled $6.78 billion, up 8% from the previous year. All-flash array annualized net revenue run rate reached $4.1 billion, a 14% increase from a year ago.

The company’s gross profit in the fourth quarter was reported at $1.19 billion, with a non-GAAP gross profit of $1.20 billion. For fiscal year 2025, the gross profit amounted to $4.61 billion, with a non-GAAP gross profit of $4.67 billion. The consolidated gross margin for Q4 was 69.5%, and for fiscal year 2025 was 70.2%. Operating expenses for the fourth quarter totaled $707 million, down 2% year-over-year.

NetApp ended fiscal year 2025 with $4.54 billion in deferred revenue, which increased by 7% year-over-year. Operating cash flow for the year was $1.51 billion, while free cash flow was $1.34 billion. In return to shareholders, the company repurchased $1.15 billion in stock and paid $424 million in cash dividends for the full fiscal year.

Looking ahead, NetApp projects total revenue for fiscal year 2026 to range between $6.625 billion and $6.875 billion, implying a growth rate of approximately 3% year-over-year, though excluding the divested Spot business indicates an adjusted growth estimate of around 4%. For the first quarter of fiscal year 2026, revenue is expected to be between $1.455 billion and $1.605 billion.

The company anticipates a consolidated gross margin for fiscal year 2026 of 71% to 72%, with an operating margin estimated between 28.8% and 29.8%. EPS guidance for fiscal year 2026 is between $7.60 and $7.90.

As for operational insights, NetApp experienced strong growth in its first-party and marketplace cloud storage services, which increased by 44% year-over-year in Q4, contributing significantly to the overall revenue performance. The company also noted the ongoing development of its all-flash systems and Public Cloud services as key growth drivers moving forward.

NetApp remains committed to returning cash to shareholders, planning to return up to 100% of free cash flow through dividends and share repurchases in fiscal year 2026. The company closed the quarter with a net cash position of approximately $610 million, supported by a healthy balance sheet amidst the strong earnings alignment with its strategic priorities.