# AI and all-flash demand send NetApp revenues to record heights > Source: > Published: 2026-05-29 12:47:12+00:00 # AI and all-flash demand send NetApp revenues to record heights AI demand and raised prices have lifted [NetApp](https://www.blocksandfiles.com/flash/2026/02/27/all-flash-array-revenue-boost-puts-netapp-on-track-to-strongest-year-yet/4092717) revenues to record quarterly and full year levels. The company earned $1.948 billion in revenues in the fourth fiscal 2026 quarter ended April 24, up 12 percent year/year, and beating its $1.945 billion high-end guidance, with GAAP net income of $404 million 19 percent higher Y/Y. Full fy 2026 revenues were also a record, at $4.93 billion, 5 percent higher Y/Y. NetApp reported record all-flash array revenues of $1.2 billion, up 18 percent, and its public cloud business also reached a record high of $182 million; an 11 percent increase. CEO George Kurian was pleased with this, saying: “Fiscal year 2026 was a landmark year for NetApp with record results across revenue, gross profit, operating income, cash flow from operations, and free cash flow. Our industry-leading hybrid cloud, intelligent data infrastructure platform, trusted by the world’s leading organizations, is powering customers’ AI driven transformations, delivering secure, high-performance access to data wherever it resides,” which is mostly, for NetApp, in its on-premises ONTAP arrays. **Financial summary** Gross margin: 70.1 percent vs 68.9 percent a year ago, driven up by public cloud Operating cash flow: $950 million vs $675 million a year ago Free cash flow: $900 million vs $640 million a year ago EPS: $2.43 vs year-ago $1.93 Cash, cash equivalents & restricted cash: $2.1 billion vs $2.8 billion a year ago Gross debt outstanding: $2.5 billion with net cash of $1.1 billion The cash flow numbers were up because of increased collections from higher billings. Kurian said: “We achieved record revenue in Q4 and FY26, driven by public cloud, all-flash, and Keystone, which all reached all-time highs, reflecting strong demand from customers modernizing infrastructure and scaling AI workloads.” All-flash arrays provided the bulk of the revenue increase and AI was a growth engine for NetApp, with approximately 500 AI and data preparation wins in the quarter. There were roughly 400 for the whole of the prior fiscal year. Kurian added: ”What we also saw was that in the non-demanding AI environment, customers are starting to buy more of hybrid flash, which we are uniquely positioned to deliver under a single operating system;” ONTAP. William Blair analyst Jason Ader said: “Management cited strong traction in high‑performance flash systems for AI and broader enterprise use-cases such as data center modernization and consolidation.” EVP and CFO Wissam Jabre said: “Professional Services revenue of $112 million was up 14 percent year-over-year, mainly driven by growth in Keystone, our storage-as-a-service offering which continues to build momentum. NetApp’s public cloud revenues represented 9.3 percent of its overall revenues in the quarter, slightly down in its general 10 percent or so average, but they are vital to NetApp’s hybrid cloud messaging and market. As an example of this, Jabbre said: “Product revenue of $966 million was up 14 percent year-over-year, driven by the execution of a multi-year agreement with Google Cloud to deliver secure, AI-ready data infrastructure to Google Distributed Cloud environments.” Customers were not buying kit to defeat upcoming price rises as, in the [earnings call,](https://seekingalpha.com/article/4909870-netapp-inc-ntap-q4-2026-earnings-call-transcript ) Kurian said: ”The impact of pull forward or accelerated decision-making was minimal.” The upside was mainly tied to large deals and AI-related infrastructure investments. NetApp’s customers more or less accepted price rises due to supply chain issues such as higher NAND pricing. Regarding the outlook, Kurian said: “We see really strong outlook for this coming year powered by our confidence in our position and what we see as growing evidence that enterprise AI is happening in front of our eyes.” He pointed out: “We think that we are very well positioned because of our installed base of data, our hybrid cloud data infrastructure pipelines that make it much easier for customers to use AI and the fact that we can offer our customers life cycle cost management from super-high performance flash to exceptionally cost-effective disk-based environment.” Next quarter’s revenue outlook is for accelerated growth; $1.825 billion ± $75 million, a 17 percent Y/Y rise at the mid-point. The full fy2027 revenue guidance is $7.45 billion ± $125 million, a more restrained 7.6 percent Y/Y rise. Comment NetApp’s 12 percent Y/Y revenue increase exceeded the 8 percent growth in Dell’s storage revenues in its latest quarter (see separate article). However both were surpassed by [Everpure](https://www.blocksandfiles.com/flash/2026/05/28/everpures-resounding-revenue-jump/5247790) with its 35 percent growth rate.