NetApp’s All-Flash Revenues Up 9% to $1B, Q3 Guidance in $1.62B–$1.76B Range
NetApp’s all-flash array revenues rose 9% year-over-year to $1.0 billion while total billings climbed 4% to $1.65 billion last quarter. Overall revenues increased 3% to $1.71 billion as Public Sector demand softened and Q3 guidance of $1.69 billion ± $75 million signals continued single-digit growth, prompting downward earnings revisions.
1. Flash and Billing Performance
NetApp’s all-flash array segment delivered $1.0 billion in revenues, up 9% year-over-year, representing a $4.1 billion annualized run rate. Total billings rose 4% to $1.65 billion, contributing to overall quarterly revenues of $1.71 billion, a modest 3% increase.
2. Storage-as-a-Service Momentum
Keystone storage-as-a-service revenues surged 76% year-over-year, lifting professional services revenue 13.8% to $99 million. Unbilled remaining performance obligations climbed 39% to $456 million, indicating a robust pipeline for on-demand storage offerings.
3. Guidance and Analyst Outlook
Management set Q3 revenue guidance at $1.69 billion ± $75 million, reflecting continued single-digit growth expectations. Analysts have trimmed fiscal estimates and assigned a sell rating amid softened sector demand and modest macroeconomic headwinds.