Financial Analysis

16. Commitments and Contingencies Purchase Orders and Other Commitments In the ordinary course of business, we make commitments to third-party contract manufacturers and component suppliers to manage manufacturer lead times and meet product forecasts, and to other parties, to purchase various key components used in the manufacture of our products. A significant portion of our reported purchase commitments arising from these agreements consist of firm, non-cancelable, and unconditional commitments. As of April 24, 2026 , we had $ 1.0 billion in non-cancelable purchase commitments for inventory. We record a liability for firm, non-cancelable and unconditional purchase commitments for quantities in excess of our future demand forecasts consistent with the valuation of our excess and obsolete inventory. As of April 24, 2026 and April 25, 2025 , such liability amounted to $ 25 million and $ 22 million, respectively, and is included in accrued expenses in our consolidated balance sheets. To the extent that such forecasts are not achieved, our commitments and associated accruals may change. In addition to inventory commitments with contract manufacturers and component suppliers, we have open purchase orders and contractual obligations associated with our ordinary course of business for which we have not yet received goods or services. As of April 24, 2026 , we had $ 0.4 billion in other purchase obligations. Of the total $ 1.4 billion in purchase commitments, $ 1.1 billion is due in …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

7. Financing Arrangements Long-Term Debt The following table summarizes information relating to our long-term debt, which we collectively refer to as our Senior Notes (in millions, except interest rates): Effective Interest Rate April 24, 2026 April 25, 2025 1.875% Senior Notes Due June 2025 2.03 % $ $ 750 2.375% Senior Notes Due June 2027 2.51 % 550 550 2.70% Senior Notes Due June 2030 2.81 % 700 700 5.50% Senior Notes Due March 2032 5.71 % 625 625 5.70% Senior Notes Due March 2035 5.90 % 625 625 Total principal amount 2,500 3,250 Unamortized discount and issuance costs ( 13 ) ( 15 ) Total senior notes 2,487 3,235 Less: Current portion of long-term debt ( 750 ) Total long-term debt $ 2,487 $ 2,485 Senior Notes On June 23, 2025, upon maturity, we repaid the 1.875 % Senior Notes due June 2025 for an aggregate amount of $ 757 million, comprised of the principal and unpaid interest. In March 2025, we issued $ 625 million aggregate principal amount of 5.50 % Senior Notes due 2032 and $ 625 million aggregate principal amount of 5.70 % Senior Notes due 2035, for which we received total proceeds of $ 1.24 billion, net of discount and issuance costs. Our Senior Notes, which are unsecured, unsubordinated obligations, rank equally in right of payment with any existing and future senior unsecured indebtedness. Interest on our Senior Notes is payable semi-annually. We may redeem the Senior Notes in whole or in part, at any time at our option at specified redemption prices. In addition, u …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

"4. Goodwill and Purchased Intangible Assets, Net Goodwill activity by reportable segment is summarized as follows (in millions): Hybrid Cloud Public Cloud Total Balance as of April 26, 2024 $ 1,714 $ 1,045 $ 2,759 Derecognition ( 36 ) ( 36 ) Balance as of April 25, 2025 1,714 1,009 2,723 Impact of foreign currency translation 49 49 Balance as of April 24, 2026 $ 1,714 $ 1,058 $ 2,772 During fiscal 2025, we derecognized a portion of the Public Cloud goodwill in connection with the sale of our cloud optimization and management software business known as Spot by NetApp, which formed part of our Public Cloud reportable segment. See ""Gains/losses on the sale or derecognition of assets"" section contained in Note 5 Supplemental Financial Information for additional information related to this derecognition. Purchased intangible assets, net are summarized below (in millions): April 24, 2026 April 25, 2025 Gross Accumulated Net Gross Accumulated Net Assets Amortization Assets Assets Amortization Assets Developed technology $ 55 $ ( 44 ) $ 11 $ 55 $ ( 33 ) $ 22 Customer contracts/relationships 50 ( 39 ) 11 50 ( 29 ) 21 Other purchased intangibles 2 ( 2 ) 2 ( 2 ) Total purchased intangible assets $ 107 $ ( 85 ) $ 22 $ 107 $ ( 64 ) $ 43 Amortization expense for purchased intangible assets is summarized below (in millions): Year Ended Statements of April 24, 2026 April 25, 2025 April 26, 2024 Income Classifications Developed technology $ 11 $ 28 $ 34 Cost of revenues Customer contracts/ …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

12. Income Taxes Income before income taxes is as follows (in millions): Year Ended April 24, 2026 April 25, 2025 April 26, 2024 Domestic $ 718 $ 606 $ 472 Foreign 930 777 791 Total $ 1,648 $ 1,383 $ 1,263 The provision for income taxes consists of the following (in millions): Year Ended April 24, 2026 April 25, 2025 April 26, 2024 Current: Federal $ 83 $ 131 $ 89 State 24 38 25 Foreign 130 128 110 Total current 237 297 224 Deferred: Federal 82 ( 102 ) 24 State 12 ( 16 ) 6 Foreign 41 18 23 Total deferred 135 ( 100 ) 53 Provision for income taxes $ 372 $ 197 $ 277 During the fourth quarter of fiscal 2025, the Internal Revenue Service (IRS) substantially completed the examination of our fiscal 2018 and fiscal 2019 U.S. income tax returns, and we recognized a tax benefit of $ 36 million attributable to the release of related tax reserves. The provision for income taxes differs from the amount computed by applying the statutory federal income tax rate, in accordance with the guidance in ASU 2023-09, as follows (in millions, except percentages): Year Ended April 24, 2026 Tax Effect Rate Impact Tax computed at federal statutory rate $ 346 21.0 % State and local income taxes, net of federal benefit (1) 30 1.8 % Foreign tax effects: Ireland Statutory tax rate difference between Ireland and U.S. ( 44 ) ( 2.7 )% Ireland earnings taxed at rates other than statutory 14 0.8 % Other 3 0.2 % Cyprus Statutory tax rate difference between Cyprus and U.S. ( 15 ) ( 0.9 )% Deduction for qualifyin …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Recent Accounting Pronouncements Not Yet Adopted In September 2025, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2025-06, IntangiblesGoodwill and OtherInternal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. The ASU simplifies the capitalization guidance by removing all references to prescriptive and sequential software development stages (referred to as project stages) throughout ASC 350-40. The ASU is effective for annual periods beginning after December 15, 2027, with early adoption permitted. Adoption of this ASU can be applied prospectively; or following a modified transition approach that is based on the status of each project and whether software costs were capitalized before adoption; or retrospectively. We are currently evaluating the effect of this pronouncement on our consolidated financial statements and disclosures. In November 2024, the FASB issued ASU 2024-03, Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires additional disclosure of the nature of expenses included in the income statement. The standard requires disclosures about specific types of expenses included in the expense captions presented in the income statement as well as disclosures about selling expenses. This ASU is effective for fiscal years beginning after December 15, 2026, and interim periods …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

15. Employee Benefits and Deferred Compensation Employee 401(k) Plan Our 401(k) Plan is a deferred salary arrangement under Section 401(k) of the Internal Revenue Code. Under the 401(k) Plan, participating U.S. employees may defer a portion of their pre-tax earnings, up to the IRS annual contribution limit. We match 100 % of the first 2 % of eligible earnings an employee contributes to the 401(k) Plan, and then match 50 % of the next 4 % of eligible earnings an employee contributes. An employee receives the full 4% match when he/she contributes at least 6 % of his/her eligible earnings, up to a maximum calendar year matching contribution of $ 6,000 . Our employer matching contributions to the 401(k) Plan were as follows (in millions): Year Ended April 24, 2026 April 25, 2025 April 26, 2024 401(k) matching contributions $ 29 $ 30 $ 29 Deferred Compensation Plan We have a non-qualified deferred compensation plan that allows a group of employees within the U.S. to contribute base salary and commissions or incentive compensation on a tax deferred basis in excess of the IRS limits imposed on 401(k) plans. The marketable securities related to these investments are held in a Rabbi Trust. The related deferred compensation plan assets and liabilities under the non-qualified deferred compensation plan were as follows (in millions): April 24, 2026 April 25, 2025 Deferred compensation plan assets reported as: Other current assets $ 9 $ 7 Other non-current assets $ 40 $ 34 Deferred compen …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

11. Restructuring Charges In fiscal 2026, management approved a restructuring plan to redirect resources to the highest return activities and reduce costs. Charges related to the plan consisted primarily of employee severance-related costs. The activities under this plan were substantially complete by the end of fiscal 2026. In fiscal 2025, management approved restructuring plans to redirect resources to the highest return activities and reduce costs. Charges related to the plans consisted primarily of employee severance-related costs and lease termination charges. One of the plans related to the sale of our cloud optimization and management software business known as Spot by NetApp. The activities under these plans were substantially complete by the end of fiscal 2025. In fiscal 2024, management approved restructuring plans to redirect resources to the highest return activities and reduce costs. Charges related to the plans consisted primarily of employee severance-related costs. One of the plans also included termination of certain real estate leases in various countries, resulting in lease termination charges. The activities under these plans were substantially complete by the end of fiscal 2024. Activities related to our restructuring plans are summarized as follows (in millions): Total Balance as of April 28, 2023 $ 36 Net charges 44 Cash payments ( 70 ) Balance as of April 26, 2024 10 Net charges 83 Cash payments ( 42 ) Balance as of April 25, 2025 51 Net charges 21 Cas …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

14. Segment, Geographic, and Significant Customer Information Our operations are organized into two segments: Hybrid Cloud and Public Cloud. The two segments are based on the information reviewed by our Chief Operating Decision Maker (CODM), who is the Chief Executive Officer, to evaluate results and allocate resources. The CODM measures performance of each segment based on segment revenue and segment gross profit by comparing actual revenue and gross profit results to historical results and previously forecasted financial information. We do not allocate to our segments certain cost of revenues which we manage at the corporate level. These unallocated costs include stock-based compensation and amortization of intangible assets. We do not allocate assets to our segments . Hybrid Cloud offers a unified data storage portfolio of storage management and infrastructure solutions that helps customers modernize their data centers. This portfolio accommodates both structured and unstructured data with unified storage optimized for flash, disk, and cloud storage, capable of handling data-intensive workloads and applications. Hybrid Cloud includes software, hardware, and related support, along with professional and other services. Public Cloud offers a portfolio of products delivered primarily as-a-service, including related support. This portfolio includes cloud storage, data services, and operational services. Public Cloud includes certain reseller arrangements in which the timing of …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

3. Business Combination DataPelago, Inc. Acquisition On July 16, 2026 , we acquired all the outstanding shares of DataPelago, Inc., (DataPelago), a privately-held company, for $ 193 million, of which $ 87 million was paid in cash at closing. The remaining $ 106 million represents contingent consideration, which we recognized in accrued expenses in our condensed consolidated balance sheet, and which will be paid if certain criteria as defined in the merger agreement are achieved. DataPelago is an AI data infrastructure company recognized for its innovative approach to eliminate data processing bottlenecks for AI and analytics workloads. The preliminary acquisition-date values of the assets acquired and liabilities assumed are as follows (in millions): Amount Cash $ 9 Developed technology 22 Goodwill 151 Other assets 16 Total assets acquired 198 Liabilities assumed ( 5 ) Total purchase price $ 193 The acquired net assets of DataPelago were recorded at their estimated values, which we determined with the assistance of valuations performed by third party specialists. The acquisition resulted in the recognition of a developed technology intangible asset with an estimated useful life of five years . We expect to realize revenue synergies and anticipate future opportunities for growth through the ability to leverage additional future products and capabilities. These factors, among others, contributed to a purchase price in excess of the estimated value of the identifiable net assets …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

14. Commitments and Contingencies Purchase Orders and Other Commitments In the ordinary course of business, we make commitments to third-party contract manufacturers and component suppliers to manage manufacturer lead times and meet product forecasts, and to other parties, to purchase various key components used in the manufacture of our products. A significant portion of our reported purchase commitments arising from these agreements consist of firm, non-cancelable, and unconditional commitments. As of July 31, 2026, we ha d $ 1.9 billion in non-cancelable purchase commitments for inventory. In addition to inventory commitments with contract manufacturers and component suppliers, we have open purchase orders and contractual obligations associated with our ordinary course of business for which we have not yet received goods or services. As of July 31, 2026, we had $ 0.4 billion in other purchase obligations. Of the total $ 2.3 billion in purchase commitments, $ 2.1 billion is due in the next twelve months, with the remainder due thereafter. Legal Contingencies When a loss is considered probable and reasonably estimable, we record a liability in the amount of our best estimate for the ultimate loss. However, the likelihood of a loss with respect to a particular contingency is often difficult to predict and determining a meaningful estimate of the loss or a range of loss may not be practicable based on the information available and the potential effect of future events and deci …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

7. Financing Arrangements Long-Term Debt The following table summarizes information relating to our long-term debt, which we collectively refer to as our Senior Notes (in millions, except interest rates): Effective Interest Rate July 31, 2026 April 24, 2026 2.375% Senior Notes Due June 2027 2.51 % 550 550 2.70% Senior Notes Due June 2030 2.81 % 700 700 5.50% Senior Notes Due March 2032 5.71 % 625 625 5.70% Senior Notes Due March 2035 5.90 % 625 625 Total principal amount 2,500 2,500 Unamortized discount and issuance costs ( 12 ) ( 13 ) Total senior notes 2,488 2,487 Less: Current portion of long-term debt ( 550 ) Total long-term debt $ 1,938 $ 2,487 Senior Notes Our Senior Notes, which are unsecured, unsubordinated obligations, rank equally in right of payment with any existing and future senior unsecured indebtedness. Interest on our Senior Notes is payable semi-annually. We may redeem the Senior Notes in whole or in part, at any time at our option at specified redemption prices. In addition, upon the occurrence of certain change of control triggering events, we may be required to repurchase the Senior Notes under specified terms. The Senior Notes also include covenants that limit our ability to incur debt secured by liens on assets or on shares of stock or indebtedness of our subsidiaries; to engage in certain sale and lease-back transactions; and to consolidate, merge or sell all or substantially all of our assets. As of July 31, 2026, we were in compliance with all covena …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

4. Goodwill and Purchased Intangible Assets, Net Goodwill activity by reportable segment is summarized as follows (in millions): Hybrid Cloud Public Cloud Total Balance as of April 24, 2026 $ 1,714 $ 1,058 $ 2,772 Additions 125 26 151 Impact of foreign currency translation ( 7 ) ( 7 ) Balance as of July 31, 2026 $ 1,839 $ 1,077 $ 2,916 Purchased intangible assets, net are summarized below (in millions): July 31, 2026 April 24, 2026 Gross Accumulated Net Gross Accumulated Net Assets Amortization Assets Assets Amortization Assets Developed technology $ 77 $ ( 47 ) $ 30 $ 55 $ ( 44 ) $ 11 Customer contracts/relationships 50 ( 42 ) 8 50 ( 39 ) 11 Other purchased intangibles 2 ( 2 ) Total purchased intangible assets $ 127 $ ( 89 ) $ 38 $ 107 $ ( 85 ) $ 22 …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

11. Income Taxes Our effective tax rates for the periods presented were as follows: Three Months Ended July 31, 2026 July 25, 2025 Effective tax rates 22.5 % 23.4 % Our effective tax rate reflects the impact of a significant amount of earnings being taxed in foreign jurisdictions at rates below the United States (U.S.) statutory rate which is offset by non-deductible stock-based compensation and state taxes. Our effective tax rate for the three months ended July 31, 2026 includes an increase in discrete tax benefits related to stock-based compensation compared to the corresponding period of the prior year. On July 4, 2025, the reconciliation bill H.R. 1, referred to as the One Big Beautiful Bill Act (OBBB), was signed into law in the United States. The OBBB contains several changes to corporate taxation including the extension of key provisions of the 2017 Tax Cuts and Jobs Act and modifications to the international tax framework. The legislation has multiple effective dates, with certain provisions effective in our fiscal 2026 and others phased in through our fiscal 2027. The OBBB did not have a material impact to our income tax provision for the three months ended July 31, 2026. The Organisation for Economic Co-operation and Development (OECD) introduced an international tax framework under Pillar Two that provides for a global minimum tax of 15% for large multinational companies. We are currently subject to Pillar Two rules enacted in certain foreign jurisdictions in which …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

10. Restructuring Charges In the first three months of fiscal 2027, management approved a restructuring plan to redirect resources to the highest return activities and reduce costs. Charges related to the plan consisted primarily of employee severance-related costs. The activities under the plan are expected to be substantially complete by the end of fiscal 2027. Activities related to our restructuring plans are summarized as follows (in millions): Three Months Ended July 31, 2026 July 25, 2025 Balance at beginning of period $ 6 $ 51 Net charges 56 2 Cash payments ( 22 ) ( 37 ) Balance at end of period $ 40 $ 16 Liabilities for our restructuring activities are included in accrued expenses in our condensed consolidated balance sheets.

RestructuringAndRelatedActivitiesDisclosureTextBlock

13. Segment, Geographic, and Significant Customer Information Our operations are organized into two segments: Hybrid Cloud and Public Cloud. The two segments are based on the information reviewed by our Chief Operating Decision Maker (CODM), who is the Chief Executive Officer, to evaluate results and allocate resources. The CODM measures performance of each segment based on segment revenue and segment gross profit by comparing actual revenue and gross profit results to historical results and previously forecasted financial information. We do not allocate to our segments certain cost of revenues which we manage at the corporate level. These unallocated costs include stock-based compensation and amortization of intangible assets. We do not allocate assets to our segments. Hybrid Cloud offers a unified data storage portfolio of storage management and infrastructure solutions that helps customers modernize their data centers. This portfolio accommodates both structured and unstructured data with unified storage optimized for flash, disk, and cloud storage, capable of handling data-intensive workloads and applications. Hybrid Cloud includes software, hardware, and related support, along with professional and other services. Public Cloud offers a portfolio of products delivered primarily as-a-service, including related support. This portfolio includes cloud storage, data services, and operational services. Public Cloud includes certain reseller arrangements in which the timing of o …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing