US data infrastructure firm NetApp's revenue hits $1.56b in Q1

NetApp reported US$1.56 billion in net revenue for Q1 FY 2026, a 1% rise from the previous year, with US$233 million in net income, down 6% year-on-year.

The San Jose-based data infrastructure company said its all-flash array revenue reached US$893 million, up 6% year-on-year, and cited IDC in claiming the top market share position for all-flash storage in Q1 2025.

Public cloud storage services revenue rose 33% year-on-year, while billings hit US$1.5 billion, up 4%.

Cash provided by operations reached a record US$673 million for the quarter.

NetApp returned US$404 million to shareholders through stock buybacks and dividends.

The company expects Q2 net revenue between US$1.6 billion and US$1.8 billion, and full-year guidance projects US$6.6 billion to US$6.9 billion.

NetApp announced several new products targeting AI, cloud storage, and data security, and named Syam Nair as chief product officer.

🔗 Source: NetApp

🧠 Food for thought

1️⃣ Enterprise storage market consolidation favors established players over startups

NetApp’s rise to the #1 all-flash storage position reflects a broader industry pattern where established companies ultimately prevail over innovative startups.

The all-flash array market saw 18 startups attempt to disrupt traditional storage, but only Pure Storage successfully went public and achieved significant scale with $1.6 billion in annual revenue2.

Other promising startups like Violin Memory filed for Chapter 11 bankruptcy, while EMC acquired XtremIO for $3 billion in revenues within three years but later discontinued its $1 billion DSSD acquisition2.

NetApp’s own growth strategy involved acquiring startup innovation through its $870 million purchase of SolidFire rather than building from scratch2.

This pattern illustrates how incumbent companies with established customer relationships, distribution channels, and resources can ultimately capitalize on market transitions that startups helped create.