(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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