NetApp, Inc. (NTAP) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that NetApp, Inc. surfaced in its latest filing.

• Inflationary pressure and supply chain constraints beginning in the second half of fiscal 2026 resulted in increased costs for memory and other components, which have affected our gross margins.fiscal 2026
• Restructuring plans announced in fiscal 2024, fiscal 2025, and fiscal 2026.fiscal 2024, fiscal 2025, fiscal 2026
• Implementation of the final phase of a new enterprise resource planning system in the third quarter of fiscal 2026.third quarter of fiscal 2026
• Disruptions during the ERP transition have impacted and may continue to impact ability to efficiently process customer orders and issue invoices.
• In fiscal 2025 and fiscal 2026, we reorganized our sales resources, including changes and additions to our sales leadership team.fiscal 2025 and fiscal 2026
• The U.S. Department of Justice has pursued claims and settlements with IT vendors, including us, under the False Claims Act related to pricing, discount practices, cybersecurity, or procurement integrity.
• The ongoing conflict in the Middle East has disrupted our ability to fulfill customer orders in the region on a timely basis.
• In June 2021, the EC imposed new SCC requirements that require NetApp to revise customer and vendor agreements.June 2021
• The EU AI Act, effective August 1, 2024, imposes requirements on high-risk AI systems including risk management and data governance obligations.August 1, 2024
• We are currently in active patent litigations with non-practicing entities.
• As of April 24, 2026, we had $2.5 billion aggregate principal amount of outstanding indebtedness for our senior notes that mature at specific dates in calendar years 2027, 2030, 2032 and 2035.April 24, 2026
• One Big Beautiful Bill Act enacted in July 2025 introduced significant changes to U.S. tax law, including permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act of 2017, modifications to the international tax framework, and restoration of immediate expensing of U.S. research and development expenditures.July 2025
• U.S. public sector revenues represented 11%, 11%, and 10% of net revenues in fiscal 2024, 2025, and 2026 respectively.fiscal 2024, 2025, 2026
• Historical seasonal decline in revenues in the first quarter of the fiscal year and seasonal increase in revenues in the fourth quarter.