Compared to Estimates, NetApp (NTAP) Q2 Earnings: A Look at Key Metrics

For the quarter ended October 2025, NetApp (NTAP) reported revenue of $1.71 billion, up 2.8% over the same period last year. EPS came in at $2.05, compared to $1.87 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $1.69 billion, representing a surprise of +1.09%. The company delivered an EPS surprise of +8.47%, with the consensus EPS estimate being $1.89.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.Here is how NetApp performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:Gross margin - Product - Non-GAAP: 59.5% versus the eight-analyst average estimate of 56.5%.Gross margin - Services - Non-GAAP: 83.8% versus 83.3% estimated by seven analysts on average.Product - % Change: 3% versus 0.6% estimated by six analysts on average.Total Revenue - % Change: 3% versus the six-analyst average estimate of 2%.Geographic Revenue- United States, Canada and Latin America: $863 million versus the two-analyst average estimate of $862.89 million. The reported number represents a year-over-year change of +0.1%.Geographic Revenue- Asia Pacific: $270 million versus the two-analyst average estimate of $274.62 million. The reported number represents a year-over-year change of +6.7%.Geographic Revenue- Europe, Middle East and Africa: $572 million versus the two-analyst average estimate of $551.06 million. The reported number represents a year-over-year change of +5.3%.Net revenues- Services: $917 million compared to the $916.66 million average estimate based on eight analysts. The reported number represents a change of +3% year over year.Net revenues- Product: $788 million versus the eight-analyst average estimate of $769.67 million. The reported number represents a year-over-year change of +2.6%.Net revenues- Public Cloud: $171 million versus $174.8 million estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +1.8% change.Net revenues- Hybrid Cloud: $1.53 billion compared to the $1.52 billion average estimate based on five analysts. The reported number represents a change of +3% year over year.Net revenues- Support: $647 million versus the five-analyst average estimate of $645.23 million. The reported number represents a year-over-year change of +1.9%.View all Key Company Metrics for NetApp here>>>Shares of NetApp have returned -7% over the past month versus the Zacks S&P 500 composite's -1.2% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.See "2nd Wave" AI stocks now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NetApp, Inc. (NTAP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks