NetApp Q1 FY27 slides reveal strong AI demand despite stock selloff

NetApp reported a strong first quarter for fiscal year 2027, with revenue increasing 30% year-over-year to $2.03 billion and non-GAAP earnings per share rising 66% to $2.58. Despite exceeding analyst expectations and raising guidance, the stock fell 8.92% in after-hours trading due to concerns about sustained growth potential. The company's presentation emphasized the demand for its AI and hybrid multicloud solutions, with AI evolving from a future aspiration to a business imperative for enterprise customers.

NetApp's success was driven by all-flash arrays and Public Cloud solutions, which now make up 75% of the company's total revenue. Highlights include a record $1.31 billion in All-flash array revenue, up 47% year-over-year, and $206 million in Public Cloud revenue, up 28% year-over-year. The company also won approximately 350 AI and data lake modernization deals during the quarter.

NetApp raised its full-year fiscal 2027 guidance, now anticipating revenue of $7.975 billion to $8.225 billion, marking a 17% year-over-year increase at the midpoint.