NetApp released first-quarter revenue that exceeded Wall Street expectations due to strong business demand for cloud-based services.
Enterprise cloud spending remained steady as companies upgraded the technology infrastructure at the core of their operations and added more advanced AI capabilities. Traditional shared storage is being replaced by cloud storage for business operations.
The company can utilize the demand for virtualized IT infrastructure by leveraging NetApp’s flash-based products and solutions. IT businesses are swiftly switching to faster and more affordable flash-based storage systems.
The company forecasts net revenues for the second quarter of between $1.46 billion and $1.61 billion and an adjusted profit per share of between $1.35 and $1.45. The forecasts’ midpoint went above analysts’ estimates.
Additionally, NetApp reiterated the outlook for fiscal 2024’s profit and revenue.
According to Refinitiv data, NetApp’s total revenue for the quarter ended July 28 was $1.43 billion as compared to analysts’ estimates of $1.41 billion.
Compared to analysts’ expectations of $1.07 per share, the company’s adjusted profit of $1.15 per share was higher. In trading after the bell, shares of the Sunnyvale, California-based company decreased by about 1.2%.