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NetApp achieves record flash storage revenue despite rising memory supply costs
Friday, February 27, 2026 at 05:57 PM
NetApp reported record revenue for all-flash storage in its fiscal third quarter, overcoming significant cost increases in the memory supply chain. To mitigate the impact of memory price inflation, the company has implemented price hikes and indicated a willingness to further adjust pricing if supply costs continue to rise.
Context
NetApp achieved record-breaking performance in its fiscal third quarter of 2026, with all-flash array revenue hitting $1.0 billion for the first time, marking an 11% year-over-year increase. Despite facing what CEO George Kurian termed "unprecedented inflation" in memory component costs, the company maintained a record non-GAAP operating margin of 31.1%. To offset these rising supply expenses, NetApp has already executed price increases and signaled further adjustments as needed to protect profitability.
This financial resilience is underpinned by surging demand for AI data infrastructure, as roughly 300 customers chose NetApp for AI-driven workloads during the quarter. Total revenue grew 4% to $1.71 billion, while non-GAAP earnings per share climbed 11% to $2.12. By balancing price agility with a diversified supplier strategy, NetApp remains a critical link in the semiconductor supply chain, successfully capturing high-margin growth while navigating significant macroeconomic headwinds.
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