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/ …

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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 …

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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 …

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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