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[1]
NetApp raises annual forecasts on steady demand for cloud services
Investments in high-capacity storage solutions such as those provided by NetApp have also surged to meet increasing workload demands essential for enhancing productivity and to employ artificial intelligence. In March, the company launched its AI-optimized tool, NetApp AIPod, which provides infrastructure for organizations' highest-priority AI projects, including training and inferencing. NetApp helps businesses improve efficiency of their data storage infrastructure and counts companies like Amazon.com's Amazon Web Services, Google Cloud and Microsoft's Azure as clients. NetApp now sees fiscal 2025 revenue between $6.48 billion and $6.68 billion, compared with its prior projection of $6.45 billion and $6.65 billion. Analysts on average were expecting $6.56 billion, according to LSEG data. The company expects an annual adjusted profit per share between $7 and $7.20, above estimates of $6.89. For the second quarter, the company expects to report net revenues between $1.57 billion and $1.72 billion, above estimates of $1.63 billion. Net revenue for the first quarter ended July 26 came in at $1.54 billion, compared with analysts' estimate of $1.53 billion. The hybrid cloud segment, which accounts for almost all of NetApp's revenue, recorded sales of $1.38 billion, up 7.8% from a year ago. On an adjusted basis, its profit rose to $1.56 per share from $1.15. The company said CFO Berry, who will retire on May 23, will remain in his role until a successor is named. (Reporting by Juby Babu in Mexico City; Editing by Maju Samuel)
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NetApp Raises Annual Forecasts on Steady Demand for Cloud Services
(Reuters) - NetApp raised its annual revenue and profit forecasts on Wednesday, anticipating steady demand for its cloud-based data management services, and said Chief Financial Officer Mike Berry will retire next year. Businesses have increased spending on cloud-based solutions as they look to transform their core technology infrastructure. Investments in high-capacity storage solutions such as those provided by NetApp have also surged to meet increasing workload demands essential for enhancing productivity and to employ artificial intelligence. In March, the company launched its AI-optimized tool, NetApp AIPod, which provides infrastructure for organizations' highest-priority AI projects, including training and inferencing. NetApp helps businesses improve efficiency of their data storage infrastructure and counts companies like Amazon.com's Amazon Web Services, Google Cloud and Microsoft's Azure as clients. NetApp now sees fiscal 2025 revenue between $6.48 billion and $6.68 billion, compared with its prior projection of $6.45 billion and $6.65 billion. Analysts on average were expecting $6.56 billion, according to LSEG data. The company expects an annual adjusted profit per share between $7 and $7.20, above estimates of $6.89. For the second quarter, the company expects to report net revenues between $1.57 billion and $1.72 billion, above estimates of $1.63 billion. Net revenue for the first quarter ended July 26 came in at $1.54 billion, compared with analysts' estimate of $1.53 billion. The hybrid cloud segment, which accounts for almost all of NetApp's revenue, recorded sales of $1.38 billion, up 7.8% from a year ago. On an adjusted basis, its profit rose to $1.56 per share from $1.15. The company said CFO Berry, who will retire on May 23, will remain in his role until a successor is named. (Reporting by Juby Babu in Mexico City; Editing by Maju Samuel)
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NetApp, a cloud data management company, has increased its annual forecasts due to consistent demand for its cloud services. The company's positive outlook reflects the growing trend of businesses adopting cloud technologies.
NetApp, a prominent player in the cloud data management sector, has revised its annual forecasts upward, citing steady demand for its cloud services. This move underscores the company's confidence in its market position and the overall growth of the cloud computing industry 1.
The company has adjusted its expectations for the fiscal year 2024, now anticipating revenue between $5.95 billion and $6.055 billion. This represents a significant increase from its previous forecast of $5.9 billion to $6.0 billion. Additionally, NetApp has raised its adjusted earnings per share projection to a range of $5.85 to $6.05, up from the earlier estimate of $5.65 to $5.85 2.
The positive outlook has been well-received by investors, with NetApp's shares rising by 1.5% in extended trading following the announcement. This uptick in stock value reflects market confidence in the company's growth trajectory and its ability to capitalize on the increasing demand for cloud services 1.
NetApp's optimistic forecast aligns with broader industry trends, as more businesses continue to migrate their operations to the cloud. The ongoing digital transformation across various sectors has led to a surge in demand for cloud-based solutions, benefiting companies like NetApp that specialize in cloud data management and storage 2.
While NetApp's outlook is positive, it's worth noting that the cloud services market remains highly competitive. Tech giants like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud continue to dominate the space. NetApp's ability to carve out a niche and maintain growth in this environment speaks to the strength of its offerings and its strategic positioning within the market 1.
As businesses increasingly rely on data-driven decision-making and cloud-based operations, companies like NetApp are well-positioned to benefit from this ongoing shift. The raised forecast suggests that NetApp expects this trend to continue, potentially leading to further growth and market expansion in the coming years 2.
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