Compared to Estimates, NetApp (NTAP) Q3 Earnings: A Look at Key Metrics

NetApp (NTAP) reported $1.71 billion in revenue for the quarter ended January 2026, representing a year-over-year increase of 4.4%. EPS of $2.12 for the same period compares to $1.91 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $1.69 billion, representing a surprise of +1.6%. The company delivered an EPS surprise of +2.52%, with the consensus EPS estimate being $2.07.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: 55.3% versus the eight-analyst average estimate of 59.6%.Gross margin - Services - Non-GAAP: 84.6% versus 84% estimated by seven analysts on average.Total Revenue - % Change: 4% compared to the 3% average estimate based on six analysts.Net revenues- Services: $927 million versus the eight-analyst average estimate of $911.53 million. The reported number represents a year-over-year change of +5%.Net revenues- Product: $786 million versus the eight-analyst average estimate of $772.67 million. The reported number represents a year-over-year change of +3.7%.Net revenues- Public Cloud: $174 million versus the six-analyst average estimate of $178.74 million. The reported number represents a year-over-year change of 0%.Net revenues- Hybrid Cloud: $1.54 billion compared to the $1.5 billion average estimate based on five analysts. The reported number represents a change of +4.9% year over year.Net revenues- Professional and Other Services: $99 million compared to the $98.02 million average estimate based on five analysts. The reported number represents a change of +12.5% year over year.Net revenues- Support: $654 million versus the five-analyst average estimate of $633.83 million. The reported number represents a year-over-year change of +5.3%.Gross Profit- Products: $435 million versus the eight-analyst average estimate of $465.25 million.Gross Profit- Public Cloud: $148 million versus $150.94 million estimated by four analysts on average.Gross Profit- Professional and Other Services: $31 million compared to the $30.02 million average estimate based on four analysts.View all Key Company Metrics for NetApp here>>>Shares of NetApp have returned +2.6% over the past month versus the Zacks S&P 500 composite's +0.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.Just Released: Zacks Top 10 Stocks for 2026Hurry – you can still get in early on our 10 top tickers for 2026. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful.From inception in 2012 through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2026. You can still be among the first to see these just-released stocks with enormous potential.See New Top 10 Stocks >>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