NetApp sees strong Q2 demand, ups outlook

The bulk of NetApp's sales in the quarter were attributed to hybrid cloud deployments.

NetApp delivered better-than-expected second quarter results and said it saw strong demand in all-flash and object storage systems.

The storage company reported second quarter revenue of $1.57 billion with net income of $224 million, or 98 cents a share. Non-GAAP earnings for the quarter were $1.28 a share.

Wall Street was expecting NetApp to report second quarter revenue of $1.55 billion with non-GAAP earnings of $1.21 a share.

The bulk of NetApp's sales in the quarter were attributed to hybrid cloud deployments. NetApp has been building out its public cloud business with partnerships with AWS, Google Cloud and Microsoft Azure. NetApp is also leveraging its NetApp Ontap software as a managed service.

As for the outlook, NetApp projected fiscal third quarter revenue between $1.525 billion and $1.675 billion. Non-GAAP earnings are expected to be $1.21 to $1.31 a share.

Analysts were modeling third quarter revenue of $1.59 billion with non-GAAP earnings of $1.29 a share. For fiscal 2022, NetApp is projecting revenue growth of 9% to 10% with non-GAAP earnings of $4.90 a share to $5.10 a share.

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