Strong Q1 Performance: NetApp reported revenue of $1.56 billion for Q1 FY 2026, exceeding the midpoint of guidance and marking a 1% year-over-year increase. Excluding the divested Spot business, revenue growth was 3% year-over-year. The strong financial performance was primarily driven by robust demand in the Americas enterprise segment, particularly for all-flash offerings and cloud services.

All-Flash Array Revenue Growth: All-flash array revenue reached $893 million, a modest 5% growth year-over-year. The company has faced mixed dynamics, with strong performances offsetting declines in the US public sector and EMEA markets. Approximately 45% of systems in the installed base are now all-flash, indicating an opportunity for further upgrades.

Guidance Outlook for Q2 and Full Year: For Q2, NetApp expects revenue between $1.69 billion (¡À$75 million) implying a growth rate of 2% year-over-year, contained within an annual forecast of $6.625 billion to $6.875 billion for FY 2026. This reflects expectations for modest growth, excluding the impact from the Spot divestiture.