NetApp Inc (NASDAQ: NTAP) is an enterprise data storage and cloud infrastructure company that sells hardware systems, software, and services to help organizations manage data across on-premises, hybrid, and multi-cloud environments. It makes money through product sales of storage hardware and software licenses, recurring support contracts, professional services, and public cloud storage services. Incorporated in 1992 and headquartered in San Jose, California, NetApp reported net revenues of $6.57 billion in fiscal year 2025 (year ended April 25, 2025), split between product revenues of $3.04 billion and services revenues of $3.53 billion. Services revenues break down into support ($2.51 billion), public cloud ($665 million), and professional and other services ($355 million). Seventy-eight percent of net revenues flow through indirect channels, including value-added resellers, system integrators, OEMs, and distributors. Two distributors, Arrow Electronics and TD Synnex, accounted for 21% and 24% of net revenues, respectively, in fiscal 2025, representing material customer concentration. The company holds offices in approximately 26 countries and employs roughly 5,100 sales and marketing personnel as of April 25, 2025.

Revenue model

Three revenue streams: (1) product revenues from hardware storage systems and software licenses ($3.04B, 46% of net revenues, FY2025); (2) support revenues from recurring maintenance and support contracts ($2.51B, 38%, FY2025); (3) public cloud services revenues on a consumption or subscription basis ($665M, 10%, FY2025), plus professional and other services ($355M, 5%, FY2025). Gross margin was 70% in FY2025. The majority of sales run through indirect channel partners (78% of net revenues, FY2025).

Products and services

Unified data storage systems running the ONTAP operating environment, including an all-in-one ONTAP One software license. Key software tools include NetApp Snapshot for point-in-time data protection, SnapCenter Backup Management for database and application backup and recovery, SnapMirror Data Replication for cross-environment replication, and SnapLock Data Compliance for immutable data storage. Public cloud storage services are delivered natively inside major cloud providers. The portfolio addresses hybrid and multi-cloud workloads including AI data pipelines, ransomware resilience, and legacy system modernization.

Customers and end markets

Enterprise customers across industries that require data center storage, backup, compliance, and cloud infrastructure. End markets include organizations modernizing legacy storage infrastructure, building AI workloads, and meeting ransomware resilience and regulatory compliance requirements. Two distributors, Arrow Electronics (21% of net revenues) and TD Synnex (24% of net revenues), represent the primary route to end-user customers in FY2025. The company sells through technology partners, value-added resellers, system integrators, OEMs, service providers, and distributors.

Value-chain role

Infrastructure software and hardware vendor sitting between component suppliers and enterprise end-users. NetApp designs storage systems and the ONTAP software stack, manufactures through contract manufacturers, and distributes primarily through a two-tier indirect channel of distributors and resellers. It also offers direct professional services and cloud-native storage services embedded within public cloud provider platforms.

Geographic exposure

Americas (United States, Canada, Latin America): 51% of net revenues in FY2025. EMEA (Europe, Middle East, Africa): 34%. APAC (Asia Pacific): 15%. Geographic mix was identical across FY2023, FY2024, and FY2025. The company operates offices in approximately 26 countries as of April 25, 2025.

Source: SEC 10-K, filed 2025-06-09

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