NetApp (NTAP) Morgan Stanley Technology, Media & Telecom Conference 2026 summary

Business performance and financial highlights

• Achieved strong Q3 results with 6% revenue growth excluding Spot divestiture and record operating income and EPS.

• All-Flash Arrays grew 11%, outpacing the market; public cloud business grew 17% year-on-year, with marketplace services up 27%.

• Keystone storage as a service business expanded 65-68% year-on-year, showing high customer stickiness.

• U.S. public sector performance improved in Q3 after earlier softness, with expectations for continued strength.

• Operating margins exceeded 30% in the past quarter, with disciplined capital allocation and focus on gross profit dollar growth.

AI strategy and market momentum

• Secured nearly 300 AI wins in Q3, up from 200 in the prior quarter, with 40% of deals in production workloads.

• AI use cases span data lakes, model training, and inference, with 60% focused on data preparation.

• Differentiation in AI through cost performance, advanced data management tools, hybrid/multi-cloud integration, and large unstructured data holdings.

• Growing adoption in regulated industries and expanding momentum in Europe and Asia.

• AI expected to accelerate storage growth and expand total addressable market.

Product innovation and customer solutions

• Launched AFX family for high-performance, scalable storage and AI Data Engine for data organization and governance.

• Keystone's OpEx model is highly sticky, with customers extending usage beyond initial terms; mature Keystone customers are margin accretive.

• Renewed interest in hybrid flash and flexible purchasing models in response to pricing dynamics.

• Focused on balancing gross margin dollars with gross profit dollars, optimizing product mix for customer needs.