Sector: Information Technology | Focus: Technology Hardware, Storage & Peripherals
HQ: San Jose, California
Financial Risks
NetApp faces risks from legal proceedings, including potential patent infringement lawsuits, which could lead to significant monetary damages or injunctions. Uncertainties exist regarding tax audits and their outcomes, potentially impacting the provision for income taxes. Fluctuations in operating results, shipping, accounts receivable, inventory, and vendor payments could affect cash flows. Market risk from investments in debt securities and potential insufficient liquidity to meet future obligations are also noted.
Financial Upside
NetApp's net revenues increased 6% in Q2 2025 and 7% for the first six months compared to the prior year. Product revenues, particularly C-Series all-flash array systems, saw growth. Services revenues also increased, driven by higher support contract values and professional services. Improved gross margins in the Public Cloud segment are noted. The company has a stock repurchase program with $17.1 billion authorization remaining.
