10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended October 25, 2024

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 000-27130

NetApp, Inc.

(Exact name of registrant as specified in its charter)

Delaware	77-0307520
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)

3060 Olsen Drive,

San Jose, California 95128

(Address of principal executive offices, including zip code)

(408) 822-6000

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of exchange on which registered
Common Stock, $0.001 Par Value	NTAP	The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☑	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

As of November 21, 2024, there were 203,306,424 shares of the registrant’s common stock, $0.001 par value, outstanding.

TABLE OF CONTENTS

PART I — FINANCIAL INFORMATION
Item 1	Condensed Consolidated Financial Statements (Unaudited)	3
	Condensed Consolidated Balance Sheets	3
	Condensed Consolidated Statements of Income	4
	Condensed Consolidated Statements of Comprehensive Income	5
	Condensed Consolidated Statements of Cash Flows	6
	Condensed Consolidated Statements of Stockholders’ Equity	7
	Notes to Condensed Consolidated Financial Statements	9
Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	26
Item 3	Quantitative and Qualitative Disclosures About Market Risk	37
Item 4	Controls and Procedures	38
PART II — OTHER INFORMATION
Item 1	Legal Proceedings	39
Item 1A	Risk Factors	39
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	39
Item 3	Defaults upon Senior Securities	39
Item 4	Mine Safety Disclosures	39
Item 5	Other Information	39
Item 6	Exhibits	40
SIGNATURE		41

TRADEMARKS

© 2024 NetApp, Inc. All Rights Reserved. No portions of this document may be reproduced without prior written consent of NetApp, Inc. NetApp, the NetApp logo, and the marks listed at http://www.netapp.com/TM are trademarks of NetApp, Inc. Other company and product names may be trademarks of their respective owners.

2

PART I — FINANCIAL INFORMATION

Item 1. Condensed Consolidated Financial Statements (Unaudited)

NETAPP, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions, except par value)

(Unaudited)

	October 25,  2024			April 26,   2024
ASSETS
Current assets:
Cash and cash equivalents	$	1,478		$	1,903
Short-term investments		744			1,349
Accounts receivable		873			1,007
Inventories		317			186
Other current assets		527			452
Total current assets		3,939			4,897
Property and equipment, net		593			604
Goodwill		2,759			2,759
Purchased intangible assets, net		96			124
Other non-current assets		1,617			1,503
Total assets	$	9,004		$	9,887
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	554		$	517
Accrued expenses		969			1,013
Current portion of long-term debt		749			400
Short-term deferred revenue and financed unearned services revenue		2,045			2,176
Total current liabilities		4,317			4,106
Long-term debt		1,244			1,992
Other long-term liabilities		496			585
Long-term deferred revenue and financed unearned services revenue		2,055			2,058
Total liabilities		8,112			8,741
Commitments and contingencies (Note 14)
Stockholders' equity:
Common stock and additional paid-in capital, $0.001 par value; 203 and 206 shares issued and outstanding as of October 25, 2024 and April 26, 2024, respectively		947			997
Retained earnings		—			208
Accumulated other comprehensive loss		(55	)		(59	)
Total stockholders' equity		892			1,146
Total liabilities and stockholders' equity	$	9,004		$	9,887

See accompanying notes to condensed consolidated financial statements.

3

NETAPP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In millions, except per share amounts)

(Unaudited)

	Three Months Ended				Six Months Ended
	October 25,  2024		October 27, 2023		October 25,  2024		October 27, 2023
Net revenues:
Product	$	768	$	706	$	1,437	$	1,296
Services		890		856		1,762		1,698
Net revenues		1,658		1,562		3,199		2,994
Cost of revenues:
Cost of product		307		276		576		541
Cost of services		174		176		348		347
Total cost of revenues		481		452		924		888
Gross profit		1,177		1,110		2,275		2,106
Operating expenses:
Sales and marketing		485		461		956		929
Research and development		257		262		509		509
General and administrative		77		75		152		149
Restructuring charges		12		5		29		31
Acquisition-related expense		1		3		2		6
Total operating expenses		832		806		1,648		1,624
Income from operations		345		304		627		482
Other income, net		15		11		32		19
Income before income taxes		360		315		659		501
Provision for income taxes		61		82		112		119
Net income	$	299	$	233	$	547	$	382
Net income per share:
Basic	$	1.47	$	1.12	$	2.67	$	1.82
Diluted	$	1.42	$	1.10	$	2.59	$	1.79
Shares used in net income per share calculations:
Basic		204		208		205		210
Diluted		210		211		211		214

See accompanying notes to condensed consolidated financial statements.

4

NETAPP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In millions)

(Unaudited)

	Three Months Ended						Six Months Ended
	October 25,  2024			October 27, 2023			October 25,  2024			October 27, 2023
Net income	$	299		$	233		$	547		$	382
Other comprehensive income (loss):
Foreign currency translation adjustments		3			(7	)		4			(5	)
Unrealized gains on available-for-sale securities:
Unrealized holding gains arising during the period		1			—			1			—
Unrealized gains (losses) on cash flow hedges:
Unrealized holding gains (losses) arising during the period		(2	)		3			(3	)		5
Reclassification adjustments for losses (gains) included in net income		2			(3	)		2			(4	)
Other comprehensive income (loss)		4			(7	)		4			(4	)
Comprehensive income	$	303		$	226		$	551		$	378

See accompanying notes to condensed consolidated financial statements.

5

NETAPP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)

	Six Months Ended
	October 25,  2024			October 27, 2023
Cash flows from operating activities:
Net income	$	547		$	382
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		126			128
Non-cash operating lease cost		21			23
Stock-based compensation		188			180
Deferred income taxes		(69	)		(13	)
Other items, net		35			(27	)
Changes in assets and liabilities, net of acquisitions of businesses:
Accounts receivable		138			185
Inventories		(132	)		46
Other operating assets		(107	)		(26	)
Accounts payable		36			14
Accrued expenses		(84	)		48
Deferred revenue and financed unearned services revenue		(164	)		(241	)
Long-term taxes payable		(91	)		(110	)
Other operating liabilities		2			(1	)
Net cash provided by operating activities		446			588
Cash flows from investing activities:
Purchases of investments		(882	)		(860	)
Maturities, sales and collections of investments		1,479			932
Purchases of property and equipment		(86	)		(73	)
Other investing activities, net		2			—
Net cash provided by (used in) investing activities		513			(1	)
Cash flows from financing activities:
Proceeds from issuance of common stock under employee stock award plans		55			52
Payments for taxes related to net share settlement of stock awards		(132	)		(85	)
Repurchase of common stock		(700	)		(700	)
Repayments and extinguishment of debt		(400	)		—
Dividends paid		(213	)		(209	)
Net cash used in financing activities		(1,390	)		(942	)
Effect of exchange rate changes on cash, cash equivalents and restricted cash		9			(26	)
Net change in cash, cash equivalents and restricted cash		(422	)		(381	)
Cash, cash equivalents and restricted cash:
Beginning of period		1,909			2,322
End of period	$	1,487		$	1,941

See accompanying notes to condensed consolidated financial statements.

6

NETAPP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(In millions, except per share amounts)

(Unaudited)

	Three Months Ended October 25, 2024
										Accumulated
	Common Stock and									Other
	Additional Paid-in Capital						Retained			Comprehensive
	Shares			Amount			Earnings			Loss			Total
Balances, July 26, 2024		205		$	988		$	—		$	(59	)	$	929
Net income		—			—			299			—			299
Other comprehensive income		—			—			—			4			4
Issuance of common stock under employee stock award plans, net of taxes		1			(35	)		—			—			(35	)
Repurchase of common stock		(3	)		(12	)		(288	)		—			(300	)
Excise tax on net stock repurchases		—			(2	)		—			—			(2	)
Stock-based compensation		—			103			—			—			103
Cash dividends declared ($0.52 per common share)		—			(95	)		(11	)		—			(106	)
Balances, October 25, 2024		203		$	947		$	—		$	(55	)	$	892

	Three Months Ended October 27, 2023
										Accumulated
	Common Stock and									Other
	Additional Paid-in Capital						Retained			Comprehensive
	Shares			Amount			Earnings			Loss			Total
Balances, July 28, 2023		209		$	921		$	—		$	(48	)	$	873
Net income		—			—			233			—			233
Other comprehensive loss		—			—			—			(7	)		(7	)
Issuance of common stock under employee stock award plans, net of taxes		1			(20	)		—			—			(20	)
Repurchase of common stock		(4	)		(67	)		(233	)		—			(300	)
Excise tax on net stock repurchases		—			(3	)		—			—			(3	)
Stock-based compensation		—			93			—			—			93
Modification of liability-classified awards		—			4			—			—			4
Cash dividends declared ($0.50 per common share)		—			(103	)		—			—			(103	)
Balances, October 27, 2023		206		$	825		$	—		$	(55	)	$	770

See accompanying notes to condensed consolidated financial statements.

7

NETAPP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(In millions, except per share amounts)

(Unaudited)

	Six Months Ended October 25, 2024
										Accumulated
	Common Stock and									Other
	Additional Paid-in Capital						Retained			Comprehensive
	Shares			Amount			Earnings			Loss			Total
Balances, April 26, 2024		206		$	997		$	208		$	(59	)	$	1,146
Net income		—			—			547			—			547
Other comprehensive income		—			—			—			4			4
Issuance of common stock under employee stock award plans, net of taxes		3			(77	)		—			—			(77	)
Repurchase of common stock		(6	)		(28	)		(672	)		—			(700	)
Excise tax on net stock repurchases		—			(3	)		—			—			(3	)
Stock-based compensation		—			188			—			—			188
Cash dividends declared ($1.04 per common share)		—			(130	)		(83	)		—			(213	)
Balances, October 25, 2024		203		$	947		$	—		$	(55	)	$	892

	Six Months Ended October 27, 2023
										Accumulated
	Common Stock and									Other
	Additional Paid-in Capital						Retained			Comprehensive
	Shares			Amount			Earnings			Loss			Total
Balances, April 28, 2023		212		$	945		$	265		$	(51	)	$	1,159
Net income		—			—			382			—			382
Other comprehensive loss		—			—			—			(4	)		(4	)
Issuance of common stock under employee stock award plans, net of taxes		3			(33	)		—			—			(33	)
Repurchase of common stock		(9	)		(91	)		(609	)		—			(700	)
Excise tax on net stock repurchases		—			(5	)		—			—			(5	)
Stock-based compensation		—			176			—			—			176
Modification of liability-classified awards		—			4			—			—			4
Cash dividends declared ($1.00 per common share)		—			(171	)		(38	)		—			(209	)
Balances, October 27, 2023		206		$	825		$	—		$	(55	)	$	770

See accompanying notes to condensed consolidated financial statements.

8

NETAPP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. Description of Business and Significant Accounting Policies

NetApp, Inc. (we, us, NetApp, or the Company) makes data infrastructure intelligent by combining unified data storage, integrated data services, and CloudOps solutions. NetApp creates silo-free infrastructure, harnessing observability and artificial intelligence to enable seamless data management. We provide a full range of enterprise-class software, systems and services that customers use to transform their data infrastructures across data types, workloads, and environments to realize business possibilities.

Basis of Presentation and Preparation

Our fiscal year is reported on a 52- or 53-week year ending on the last Friday in April. An additional week is included in the first fiscal quarter approximately every six years to realign fiscal months with calendar months. Fiscal years 2025 and 2024, ending on April 25, 2025 and April 26, 2024, respectively, are each 52-week years, with 13 weeks in each quarter.

The accompanying unaudited condensed consolidated financial statements have been prepared by the Company, and reflect all adjustments, consisting only of normal recurring adjustments, that are, in the opinion of management, necessary for the fair presentation of our financial position, results of operations, comprehensive income, cash flows and stockholders’ equity for the interim periods presented. The statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information. Accordingly, these statements do not include all information and footnotes required by GAAP for annual consolidated financial statements, and should be read in conjunction with our audited consolidated financial statements as of and for the fiscal year ended April 26, 2024 contained in our Annual Report on Form 10-K. The results of operations for the three and six months ended October 25, 2024 are not necessarily indicative of the operating results to be expected for the full fiscal year or future operating periods.

The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Such estimates include, but are not limited to, revenue recognition, reserves and allowances; inventory valuation; valuation of goodwill and intangibles; restructuring reserves; employee benefit accruals; stock-based compensation; loss contingencies; investment impairments; income taxes and fair value measurements. Actual results could differ materially from those estimates, the anticipated effects of which have been incorporated, as applicable, into management's estimates as of October 25, 2024.

2. Recent Accounting Pronouncements

In November 2024, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update ("ASU") 2024-03, Income Statement - Reporting Comprehensive Income - Expense 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 beginning after December 15, 2027, with early adoption permitted. The requirements should be applied on a prospective basis while retrospective application is permitted. We are currently evaluating the effect of this pronouncement on our disclosures.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which expands the disclosures required for income taxes. This ASU is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The amendment should be applied on a prospective basis while retrospective application is permitted. We are currently evaluating the effect of this pronouncement on our income tax disclosures.

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires disclosure of incremental segment information on an annual and interim basis. This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024 on a retrospective basis. We will adopt the new requirements for our annual periods starting in fiscal 2025 (and interim periods thereafter). We are currently evaluating the effect of this pronouncement, which we expect to result in enhanced financial statement disclosures only.

9

3. Goodwill and Purchased Intangible Assets, Net

Goodwill by reportable segment as of October 25, 2024 is as follows (in millions):

	Amount
Hybrid Cloud	$	1,714
Public Cloud		1,045
Total goodwill	$	2,759

Purchased intangible assets, net are summarized below (in millions):

	October 25,  2024							April 26,   2024
	Gross		Accumulated			Net		Gross		Accumulated			Net
	Assets		Amortization			Assets		Assets		Amortization			Assets
Developed technology	$	163	$	(109	)	$	54	$	179	$	(108	)	$	71
Customer contracts/relationships		108		(67	)		41		114		(62	)		52
Other purchased intangibles		3		(2	)		1		6		(5	)		1
Total purchased intangible assets	$	274	$	(178	)	$	96	$	299	$	(175	)	$	124

During the first six months of fiscal 2025, we retired approximately $25 million of fully amortized intangible assets.

Amortization expense for purchased intangible assets is summarized below (in millions):

	Three Months Ended				Six Months Ended				Statements of
	October 25,  2024		October 27, 2023		October 25,  2024		October 27, 2023		Income Classification
Developed technology	$	9	$	8	$	17	$	17	Cost of revenues
Customer contracts/relationships		5		6		11		11	Operating expenses
Other purchased intangibles		—		—		—		1	Operating expenses
Total	$	14	$	14	$	28	$	29

As of October 25, 2024, future amortization expense related to purchased intangible assets is as follows (in millions):

Fiscal Year	Amount
2025 (remainder)	$	27
2026		39
2027		29
2028		1
Total	$	96

4. Supplemental Financial Information

Cash and cash equivalents (in millions):

The following table presents cash and cash equivalents as reported in our condensed consolidated balance sheets, as well as the sum of cash, cash equivalents and restricted cash as reported on our condensed consolidated statements of cash flows:

	October 25,  2024		April 26,   2024
Cash and cash equivalents	$	1,478	$	1,903
Restricted cash		9		6
Cash, cash equivalents and restricted cash	$	1,487	$	1,909

Inventories (in millions):

	October 25,  2024		April 26,   2024
Purchased components	$	229	$	116
Finished goods		88		70
Inventories	$	317	$	186

10

Property and equipment, net (in millions):

	October 25,  2024			April 26,   2024
Land	$	46		$	46
Buildings and improvements		371			367
Leasehold improvements		86			81
Computer, production, engineering and other equipment		1,141			1,101
Computer software		349			340
Furniture and fixtures		67			77
Construction-in-progress		68			70
		2,128			2,082
Accumulated depreciation and amortization		(1,535	)		(1,478	)
Property and equipment, net	$	593		$	604

Other non-current assets (in millions):

	October 25,  2024		April 26,   2024
Deferred tax assets	$	966	$	896
Operating lease right-of-use (ROU) assets		242		247
Other assets		409		360
Other non-current assets	$	1,617	$	1,503

Other non-current assets as of October 25, 2024 and April 26, 2024 include $87 million and $85 million, respectively, for our 49% non-controlling equity interest in Lenovo NetApp Technology Limited (LNTL), a China-based entity that we formed with Lenovo (Beijing) Information Technology Ltd. in fiscal 2019. LNTL is integral to our sales channel strategy in China, acting as a distributor of our offerings to customers headquartered there, and involved in certain OEM sales to Lenovo. LNTL is also focused on localizing our products and services, and developing new joint offerings for the China market by leveraging NetApp and Lenovo technologies.

Accrued expenses (in millions):

	October 25,  2024		April 26,   2024
Accrued compensation and benefits	$	423	$	538
Product warranty liabilities		18		18
Operating lease liabilities		41		40
Other current liabilities		487		417
Accrued expenses	$	969	$	1,013

Other long-term liabilities (in millions):

	October 25,  2024		April 26,   2024
Liability for uncertain tax positions	$	161	$	153
Income taxes payable		—		100
Product warranty liabilities		9		9
Operating lease liabilities		216		220
Other liabilities		110		103
Other long-term liabilities	$	496	$	585

Deferred revenue and financed unearned services revenue

The following table summarizes the components of our deferred revenue and financed unearned services revenue balance as reported in our condensed consolidated balance sheets (in millions):

11

	October 25,  2024		April 26,   2024
Deferred product revenue	$	57	$	59
Deferred services revenue		4,001		4,123
Financed unearned services revenue		42		52
Total	$	4,100	$	4,234
Reported as:
Short-term	$	2,045	$	2,176
Long-term		2,055		2,058
Total	$	4,100	$	4,234

Deferred product revenue represents unrecognized revenue related to undelivered product commitments and other product deliveries that have not met all revenue recognition criteria. Deferred services revenue represents customer payments made in advance for services, which include software and hardware support contracts, certain public cloud services and other services. Financed unearned services revenue represents undelivered services for which cash has been received under certain third-party financing arrangements. See Note 14 – Commitments and Contingencies for additional information related to these arrangements.

During the six months ended October 25, 2024 and October 27, 2023, we recognized revenue of $1,264 million and $1,258 million, respectively, that was included in the deferred revenue and financed unearned services revenue balance at the beginning of the respective periods.

Remaining performance obligations

As of October 25, 2024, the aggregate amount of the transaction price allocated to the remaining performance obligations related to customer contracts that are unsatisfied or partially unsatisfied was $4.4 billion. Because customer orders are typically placed on an as-needed basis, and cancellable without penalty prior to shipment, orders in backlog may not be a meaningful indicator of future revenue and have not been included in this amount. We expect to recognize as revenue approximately 49% of our remaining performance obligations in the next 12 months and the remainder thereafter.

Deferred commissions

The following table summarizes deferred commissions balances as reported in our condensed consolidated balance sheets (in millions):

	October 25,  2024		April 26,   2024
Other current assets	$	67	$	69
Other non-current assets		102		100
Total deferred commissions	$	169	$	169

Other income, net (in millions):

	Three Months Ended						Six Months Ended
	October 25,  2024			October 27, 2023			October 25,  2024			October 27, 2023
Interest income	$	27		$	25		$	63		$	53
Interest expense		(15	)		(15	)		(31	)		(31	)
Other, net		3			1			—			(3	)
Total other income, net	$	15		$	11		$	32		$	19

Statements of cash flows additional information (in millions):

Supplemental cash flow information related to our operating leases is included in Note 7 ─ Leases. Non-cash investing activities and other supplemental cash flow information are presented below:

12

	Six Months Ended
	October 25,  2024		October 27, 2023
Non-cash Investing Activities:
Capital expenditures incurred but not paid	$	16	$	18
Supplemental Cash Flow Information:
Income taxes paid, net of refunds	$	222	$	222
Interest paid	$	30	$	30

5. Financial Instruments and Fair Value Measurements

The accounting guidance for fair value measurements provides a framework for measuring fair value on either a recurring or nonrecurring basis, whereby the inputs used in valuation techniques are assigned a hierarchical level. The following are the three levels of inputs to measure fair value:

Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2: Inputs that reflect quoted prices for identical assets or liabilities in less active markets; quoted prices for similar assets or liabilities in active markets; benchmark yields, reported trades, broker/dealer quotes, inputs other than quoted prices that are observable for the assets or liabilities; or inputs that are derived principally from or corroborated by observable market data by correlation or other means.

Level 3: Unobservable inputs that reflect our own assumptions incorporated in valuation techniques used to measure fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available.

We consider an active market to be one in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis, and consider an inactive market to be one in which there are infrequent or few transactions for the asset or liability, the prices are not current, or price quotations vary substantially either over time or among market makers. Where appropriate, our own or the counterparty’s non-performance risk is considered in measuring the fair values of liabilities and assets, respectively.

Investments

The following is a summary of our investments at their cost or amortized cost as of October 25, 2024 and April 26, 2024 (in millions):

	October 25,  2024		April 26,   2024
U.S. Treasury and government debt securities	$	744	$	1,349
Money market funds		707		1,161
Certificates of deposit		14		12
Mutual funds		43		38
Total debt and equity securities	$	1,508	$	2,560

The fair value of our investments approximates their cost or amortized cost for both periods presented. Investments in mutual funds relate to the non-qualified deferred compensation plan offered to certain employees.

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As of October 25, 2024, all our debt investments are due to mature in one year or less.

Fair Value of Financial Instruments

The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis (in millions):

	October 25, 2024
				Fair Value Measurements at Reporting Date Using
	Total			Level 1		Level 2
Cash and cash equivalents:
Cash	$	757		$	757	$	—
Money market funds		707			707		—
Certificates of deposit		14			—		14
Total cash and cash equivalents		1,478			1,464		14
Short-term investments:
U.S. Treasury and government debt securities		744			744		—
Total short-term investments		744			744		—
Total cash, cash equivalents and short-term investments	$	2,222		$	2,208	$	14
Other items:
Mutual funds (1)	$	7		$	7	$	—
Mutual funds (2)	$	36		$	36	$	—
Foreign currency exchange contracts assets (1)	$	—		$	—	$	—
Foreign currency exchange contracts liabilities (3)	$	(27	)	$	—	$	(27	)

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	April 26, 2024
				Fair Value Measurements at Reporting Date Using
	Total			Level 1		Level 2
Cash and cash equivalents:
Cash	$	730		$	730	$	—
Money market funds		1,161			1,161		—
Certificates of deposit		12			—		12
Total cash and cash equivalents		1,903			1,891		12
Short-term investments:
U.S. Treasury and government debt securities		1,349			1,349		—
Total short-term investments		1,349			1,349		—
Total cash, cash equivalents and short-term investments	$	3,252		$	3,240	$	12
Other items:
Mutual funds (1)	$	6		$	6	$	—
Mutual funds (2)	$	32		$	32	$	—
Foreign currency exchange contracts assets (1)	$	1		$	—	$	1
Foreign currency exchange contracts liabilities (3)	$	(13	)	$	—	$	(13	)

(1)Reported as other current assets in the condensed consolidated balance sheets

(2)Reported as other non-current assets in the condensed consolidated balance sheets

(3)Reported as accrued expenses in the condensed consolidated balance sheets

Our Level 2 debt instruments are held by a custodian who prices some of the investments using standard inputs in various asset price models or obtains investment prices from third-party pricing providers that incorporate standard inputs in various asset price models. These pricing providers utilize the most recent observable market information in pricing these securities or, if specific prices are not available for these securities, use other observable inputs like market transactions involving identical or comparable securities. We review Level 2 inputs and fair value for reasonableness and the values may be further validated by comparison to multiple independent pricing sources. In addition, we review third-party pricing provider models, key inputs and assumptions and understand the pricing processes at our third-party providers in determining the overall reasonableness of the fair value of our Level 2 debt instruments. As of October 25, 2024 and April 26, 2024, we have not made any adjustments to the prices obtained from our third-party pricing providers.

Fair Value of Debt

As of October 25, 2024 and April 26, 2024, the fair value of our long-term debt, which includes the current portion of long-term debt, was approximately $1,881 million and $2,209 million, respectively. The fair value of our long-term debt was based on observable market prices in a less active market.

6. 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	October 25,  2024			April 26,   2024
3.30% Senior Notes Due September 2024	3.42%	$	—		$	400
1.875% Senior Notes Due June 2025	2.03%		750			750
2.375% Senior Notes Due June 2027	2.51%		550			550
2.70% Senior Notes Due June 2030	2.81%		700			700
Total principal amount			2,000			2,400
Unamortized discount and issuance costs			(7	)		(8	)
Total senior notes			1,993			2,392
Less: Current portion of long-term debt			(749	)		(400	)
Total long-term debt		$	1,244		$	1,992

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Senior Notes

On September 30, 2024, upon maturity, we repaid the 3.30% Senior Notes due September 2024 for an aggregate amount of $407 million, comprised of the principal and unpaid interest. Interest on our outstanding Senior Notes is payable semi-annually in June and December.

Our Senior Notes, which are unsecured, unsubordinated obligations, rank equally in right of payment with any existing and future senior unsecured indebtedness.

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 October 25, 2024, we were in compliance with all covenants associated with the Senior Notes.

As of October 25, 2024, our aggregate future principal debt maturities are as follows (in millions):

Fiscal Year	Amount
2025 (remainder)	$	—
2026		750
2027		—
2028		550
2029		—
Thereafter		700
Total	$	2,000

Commercial Paper Program and Credit Facility

We have a commercial paper program (the “Program”), under which we may issue unsecured commercial paper notes. Amounts available under the Program, as amended in July 2017, may be borrowed, repaid and re-borrowed, with the aggregate face or principal amount of the notes outstanding under the Program at any time not to exceed $1.0 billion. The maturities of the notes can vary, but may not exceed 397 days from the date of issue. The notes are sold under customary terms in the commercial paper market and may be issued at a discount from par or, alternatively, may be sold at par and bear interest at rates dictated by market conditions at the time of their issuance. The proceeds from the issuance of the notes are used for general corporate purposes. There were no commercial paper notes outstanding as of October 25, 2024 or April 26, 2024.

In connection with the Program, we have a senior unsecured credit agreement with a syndicated group of lenders. The credit agreement, which was amended in May 2023, provides for a $1.0 billion revolving unsecured credit facility, with a sublimit of $50 million available for the issuance of letters of credit on our behalf. The credit facility matures on January 22, 2026, with an option for us to extend the maturity date for two additional 1-year periods, subject to certain conditions. The proceeds of the loans may be used by us for general corporate purposes and as liquidity support for our existing commercial paper program. As of October 25, 2024, we were compliant with all associated covenants in the agreement. No amounts were drawn against this credit facility during any of the periods presented.

7. Leases

We lease real estate, equipment and automobiles in the U.S. and internationally. Our real estate leases, which are responsible for the majority of our aggregate ROU asset and liability balances, include leases for office space, data centers and other facilities, and as of October 25, 2024, have remaining lease terms not exceeding 18 years. Some of these leases contain options that allow us to extend or terminate the lease agreement. Our equipment leases are primarily for servers and networking equipment and as of October 25, 2024, have remaining lease terms not exceeding 4 years. As of October 25, 2024, our automobile leases have remaining lease terms not exceeding 4 years. All our leases are classified as operating leases except for certain immaterial equipment finance leases.

The components of lease cost related to our operating leases were as follows (in millions):

	Three Months Ended				Six Months Ended
	October 25,  2024		October 27, 2023		October 25,  2024		October 27, 2023
Operating lease cost	$	12	$	14	$	25	$	28
Variable lease cost		4		4		8		8
Total lease cost	$	16	$	18	$	33	$	36

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Variable lease cost is primarily attributable to amounts paid to lessors for common area maintenance and utility charges under our real estate leases.

The supplemental cash flow information related to our operating leases is as follows (in millions):

	Six Months Ended
	October 25,  2024		October 27, 2023
Cash paid for amounts included in the measurement of operating lease liabilities	$	24	$	26
Right-of-use assets obtained in exchange for new operating lease obligations	$	6	$	13

The supplemental balance sheet information related to our operating leases is as follows (in millions, except lease term and discount rate):

	October 25,  2024			April 26,  2024
Other non-current assets	$	242		$	247
Total operating lease ROU assets	$	242		$	247
Accrued expenses	$	41		$	40
Other long-term liabilities		216			220
Total operating lease liabilities	$	257		$	260
Weighted Average Remaining Lease Term	8.7 years			9.2 years
Weighted Average Discount Rate		3.3	%		3.1	%

Future minimum operating lease payments as of October 25, 2024, are as follows (in millions):

Fiscal Year	Amount
2025 (remainder)	$	24
2026		45
2027		39
2028		32
2029		28
Thereafter		128
Total lease payments		296
Less: Interest		(39	)
Total	$	257

8. Stockholders’ Equity

Restricted Stock Units

We granted approximately 3 million restricted stock units (RSUs), including performance-based RSUs (PBRSUs), with a weighted average grant date fair value of $127.61 per share during the six months ended October 25, 2024.

In the six months ended October 25, 2024, we granted PBRSUs to certain of our executives. Each PBRSU has performance-based vesting criteria (in addition to the service-based vesting criteria) such that the PBRSUs cliff-vest at the end of a three year performance period, which began on the date specified in the grant agreements and typically ends on the last day of the third fiscal year, following the grant date. The number of shares that will be used to calculate the settlement amount for all of these PBRSUs at the end of the applicable performance and service period will range from 0% to 200% of a target number of shares originally granted. For half of the PBRSUs granted in the six months ended October 25, 2024, the number of shares used to calculate the settlement amount will depend upon our Total Stockholder Return (TSR) as compared to the TSR of a specified group of benchmark peer companies (each expressed as a growth rate percentage) calculated as of the end of the performance period. For the remaining half of the PBRSUs granted in the six months ended October 25, 2024, the number of shares used to calculate the settlement amount will depend upon the Company's billings result average over the three-year performance period. The billings result average is computed based on achievement against annual billings targets, with each target set at the beginning of the respective fiscal year, during the

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three-year performance period. Billings for purposes of measuring the performance of these PBRSUs means the total obtained by adding net revenues as reported on the Company's Consolidated Statements of Income to the amount reported as the change in deferred revenue and financed unearned services revenue on the Consolidated Statements of Cash Flows for the applicable measurement period, excluding the impact of fluctuations in foreign currency exchange rates. The aggregate grant date fair value of PBRSUs granted in the current year was $62 million, which is being recognized to compensation expense over the remaining performance / service periods.

Stock-Based Compensation Expense

Stock-based compensation expense is included in the condensed consolidated statements of income as follows (in millions):

	Three Months Ended				Six Months Ended
	October 25,  2024		October 27, 2023		October 25,  2024		October 27, 2023
Cost of product revenues	$	2	$	1	$	3	$	2
Cost of services revenues		6		6		12		12
Sales and marketing		43		37		78		73
Research and development		37		35		68		67
General and administrative		15		14		27		26
Total stock-based compensation expense	$	103	$	93	$	188	$	180

As of October 25, 2024, total unrecognized compensation expense related to equity awards was $764 million, which is expected to be recognized on a straight-line basis over a weighted-average remaining service period of 2.2 years.

Stock Repurchase Program

In the first quarter of fiscal 2025, our Board of Directors authorized the repurchase of an additional $1.0 billion of our common stock. As of October 25, 2024, our Board of Directors has authorized cumulative repurchases of up to $17.1 billion of our common stock under our stock repurchase program. Under this program, we may purchase shares of our outstanding common stock through solicited or unsolicited transactions in the open market, in privately negotiated transactions, through accelerated share repurchase programs, pursuant to a Rule 10b5-1 plan or in such other manner as deemed appropriate by our management. The stock repurchase program may be suspended or discontinued at any time.

The following table summarizes activity related to the stock repurchase program for the six months ended October 25, 2024 (in millions, except for per share amounts):

Number of shares repurchased		5.8
Average price per share	$	121.58
Stock repurchases allocated to additional paid-in capital	$	28
Stock repurchases allocated to retained earnings	$	672
Remaining authorization at end of period	$	802

Since the May 13, 2003 inception of our stock repurchase program through October 25, 2024, we repurchased a total of 377 million shares of our common stock at an average price of $43.25 per share, for an aggregate purchase price of $16.3 billion.

Dividends

The following is a summary of our activities related to dividends on our common stock (in millions, except per share amounts):

	Six Months Ended
	October 25,  2024		October 27, 2023
Dividends per share declared	$	1.04	$	1.00
Dividend payments allocated to additional paid-in capital	$	130	$	171
Dividend payments allocated to retained earnings	$	83	$	38

On November 19, 2024, we declared a cash dividend of $0.52 per share of common stock, payable on January 22, 2025 to holders of record as of the close of business on January 3, 2025. The timing and amount of future dividends will depend on market conditions, corporate business and financial considerations and regulatory requirements. All dividends declared have been determined by us to be legally authorized under the laws of the state in which we are incorporated.

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Accumulated Other Comprehensive Income (Loss)

Changes in accumulated other comprehensive income (loss) (AOCI) by component, net of tax, are summarized below (in millions):

	Foreign Currency Translation Adjustments			Defined Benefit Obligation Adjustments			Unrealized Gains (Losses) on Available- for-Sale Securities		Unrealized Gains (Losses) on Derivative Instruments			Total
Balance as of April 26, 2024	$	(53	)	$	(7	)	$	—	$	1		$	(59	)
Other comprehensive income (loss), net of tax		4			—			1		(3	)		2
Amounts reclassified from AOCI, net of tax		—			—			—		2			2
Total other comprehensive income (loss)		4			—			1		(1	)		4
Balance as of October 25, 2024	$	(49	)	$	(7	)	$	1	$	—		$	(55	)

The amounts reclassified out of AOCI are as follows (in millions):

	Three Months Ended					Six Months Ended
	October 25,  2024		October 27, 2023			October 25,  2024		October 27, 2023			Statements of Income Classification
Realized losses (gains) on cash flow hedges	$	2	$	(3	)	$	2	$	(4	)	Net revenues
Total reclassifications	$	2	$	(3	)	$	2	$	(4	)

9. Derivatives and Hedging Activities

We use derivative instruments to manage exposures to foreign currency risk. Our primary objective in holding derivatives is to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates. The maximum length of time over which forecasted foreign currency denominated revenues are hedged is 12 months. The program is not designated for trading or speculative purposes. Our derivatives expose us to credit risk to the extent that the counterparties may be unable to meet their obligations under the terms of our agreements. We seek to mitigate such risk by limiting our counterparties to major financial institutions. In addition, the potential risk of loss with any one counterparty resulting from this type of credit risk is monitored on an ongoing basis. We also have in place master netting arrangements to mitigate the credit risk of our counterparties and to potentially reduce our losses due to counterparty nonperformance. We present our derivative instruments as net amounts in our condensed consolidated balance sheets. The gross and net fair value amounts of such instruments were not material as of October 25, 2024 or April 26, 2024. All contracts have a maturity of less than 12 months.

The notional amount of our outstanding U.S. dollar equivalent foreign currency exchange forward contracts consisted of the following (in millions):

	October 25,  2024		April 26,   2024
Cash Flow Hedges
Forward contracts purchased	$	128	$	71
Balance Sheet Contracts
Forward contracts sold	$	920	$	881
Forward contracts purchased	$	12	$	11

The gain (loss) of cash flow hedges recognized in net revenues is presented in the condensed consolidated statements of comprehensive income and Note 8 – Stockholders’ Equity.

The effect of derivative instruments not designated as hedging instruments recognized in other income, net on our condensed consolidated statements of income was as follows (in millions):

	Three Months Ended					Six Months Ended
	October 25,  2024		October 27, 2023			October 25,  2024		October 27, 2023
	Gain (Loss) Recognized into Income					Gain (Loss) Recognized into Income
Foreign currency exchange contracts	$	1	$	(45	)	$	14	$	(49	)

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10. Restructuring Charges

In the first six months of fiscal 2025, management approved restructuring plans to redirect resources to the highest return activities and reduce costs. These plans collectively reduced our global workforce by approximately 2% for which restructuring charges, comprised of employee severance related expenses, were recorded during the first six months of fiscal 2025. The activities under these plans were initiated during the first six months of fiscal 2025 and are expected to be substantially complete by the end of fiscal 2025. Charges related to these plans consist primarily of employee severance-related costs.

In the first six months of fiscal 2024, management executed a restructuring plan to redirect resources to highest return activities, and to optimize our global office space for our hybrid work model. In connection with the plan, we reduced our global workforce by approximately 1% and terminated certain real estate leases in various countries, resulting in restructuring charges comprised primarily of employee severance related expenses and lease termination charges. The activities under the plan were substantially completed by the end of fiscal 2024.

Activities related to our restructuring plans are summarized as follows (in millions):

	Six Months Ended
	October 25,  2024			October 27, 2023
Balance at beginning of period	$	10		$	36
Net charges		29			31
Cash payments		(22	)		(46	)
Balance at end of period	$	17		$	21

11. Income Taxes

Our effective tax rates for the periods presented were as follows:

	Six Months Ended
	October 25,  2024			October 27, 2023
Effective tax rates		17.0	%		23.8	%

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. Our effective tax rate for the six months ended October 25, 2024 includes an increase in discrete tax benefits related to stock compensation compared to the corresponding period of the prior year. Our effective tax rate for the six months ended October 27, 2023 included benefits for fiscal 2023 foreign tax credits resulting from legislative guidance for that period, partially offset by an increase in stock compensation for which no tax benefit is recorded.

The Organisation for Economic Co-operation and Development (“OECD”) recently enacted model rules for a new global minimum tax framework known as Pillar Two. These rules have been agreed to by most OECD members. The OECD has since issued administrative guidance providing transition and safe harbor rules around the implementation of Pillar Two rules. On February 1, 2023, the FASB indicated that they believe taxes imposed under Pillar Two is an alternative minimum tax. Accordingly, deferred tax assets and liabilities associated with the minimum tax would not be recognized or adjusted for the estimated future effects of the minimum tax but would be recognized in the period incurred. We are currently subject to Pillar Two rules starting in our fiscal year 2025. As of October 25, 2024, Pillar Two taxes do not have a significant impact on our financial statements, particularly due to the safe harbor relief during the transition period, but we are still closely monitoring developments.

Any OECD actions adopted internationally could impact our financial results in future periods.

We are currently undergoing various income tax audits in the U.S. and audits in several foreign tax jurisdictions. Transfer pricing calculations are key topics under these audits and are often subject to dispute and appeals.

We continue to monitor the progress of ongoing discussions with tax authorities and the impact, if any, of the expected expiration of the statute of limitations in various taxing jurisdictions. We engage in continuous discussion and negotiation with taxing authorities regarding tax matters in multiple jurisdictions. We believe that within the next 12 months, it is reasonably possible that either certain audits will conclude, certain statutes of limitations will lapse, or both. As a result of uncertainties regarding tax audits and their possible outcomes, an estimate of the range of possible impacts to unrecognized tax benefits in the next twelve months cannot be made at this time.

As of October 25, 2024, we had $223 million of gross unrecognized tax benefits. Inclusive of penalties, interest and certain income tax benefits, $162 million would affect our provision for income taxes if recognized. Net unrecognized tax benefits of $161 million have been recorded in other long-term liabilities.

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12. Net Income per Share

The following is a calculation of basic and diluted net income per share (in millions, except per share amounts):

	Three Months Ended				Six Months Ended
	October 25,  2024		October 27, 2023		October 25,  2024		October 27, 2023
Numerator:
Net income	$	299	$	233	$	547	$	382
Denominator:
Shares used in basic computation		204		208		205		210
Dilutive impact of employee equity award plans		6		3		6		4
Shares used in diluted computation		210		211		211		214
Net Income per Share:
Basic	$	1.47	$	1.12	$	2.67	$	1.82
Diluted	$	1.42	$	1.10	$	2.59	$	1.79

No potential shares from outstanding employee equity awards were excluded from the diluted net income per share calculation for the three and six months ended October 25, 2024, respectively, while three million and four million shares from outstanding employee equity awards were excluded from the diluted net income per share calculation for the three and six months ended October 27, 2023, respectively, as their inclusion would have been anti-dilutive.

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. 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 help customers modernize their data centers. This portfolio supports structured and unstructured data with unified storage optimized for flash, disk, and cloud storage to handle data-intensive workloads and applications. Hybrid Cloud is composed of software, hardware, and related support, as well as professional and other services.

Public Cloud offers a portfolio of products delivered primarily as-a-service, including related support. This portfolio includes cloud storage and CloudOps services. Public Cloud includes certain reseller arrangements in which the timing of our consideration follows the end user consumption of the reseller services.

Segment Revenues and Gross Profit

Financial information by segment is as follows (in millions, except percentages):

	Three Months Ended October 25, 2024
	Hybrid Cloud			Public Cloud			Consolidated
Product revenues	$	768		$	—		$	768
Support revenues		635			—			635
Professional and other services revenues		87			—			87
Public cloud revenues		—			168			168
Net revenues		1,490			168			1,658
Cost of product revenues		305			—			305
Cost of support revenues		51			—			51
Cost of professional and other services revenues		64			—			64
Cost of public cloud revenues		—			44			44
Segment cost of revenues		420			44			464
Segment gross profit	$	1,070		$	124		$	1,194
Segment gross margin		71.8	%		73.8	%		72.0	%
Unallocated cost of revenues1								17
Total gross profit							$	1,177
Total gross margin								71.0	%
1 Unallocated cost of revenues are composed of $8 million of stock-based compensation expense and $9 million of amortization of intangible assets.

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	Three Months Ended October 27, 2023
	Hybrid Cloud			Public Cloud			Consolidated
Product revenues	$	706		$	—		$	706
Support revenues		623			—			623
Professional and other services revenues		79			—			79
Public cloud revenues		—			154			154
Net revenues		1,408			154			1,562
Cost of product revenues		275			—			275
Cost of support revenues		50			—			50
Cost of professional and other services revenues		60			—			60
Cost of public cloud revenues		—			52			52
Segment cost of revenues		385			52			437
Segment gross profit	$	1,023		$	102		$	1,125
Segment gross margin		72.7	%		66.2	%		72.0	%
Unallocated cost of revenues1								15
Total gross profit							$	1,110
Total gross margin								71.1	%
1 Unallocated cost of revenues are composed of $7 million of stock-based compensation expense and $8 million of amortization of intangible assets.

	Six Months Ended October 25, 2024
	Hybrid Cloud			Public Cloud			Consolidated
Product revenues	$	1,437		$	—		$	1,437
Support revenues		1,266			—			1,266
Professional and other services revenues		169			—			169
Public cloud revenues		—			327			327
Net revenues		2,872			327			3,199
Cost of product revenues		573			—			573
Cost of support revenues		101			—			101
Cost of professional and other services revenues		128			—			128
Cost of public cloud revenues		—			90			90
Segment cost of revenues		802			90			892
Segment gross profit	$	2,070		$	237		$	2,307
Segment gross margin		72.1	%		72.5	%		72.1	%
Unallocated cost of revenues1								32
Total gross profit							$	2,275
Total gross margin								71.1	%
1 Unallocated cost of revenues are composed of $15 million of stock-based compensation expense and $17 million of amortization of intangible assets.

	Six Months Ended October 27, 2023
	Hybrid Cloud			Public Cloud			Consolidated
Product revenues	$	1,296		$	—		$	1,296
Support revenues		1,234			—			1,234
Professional and other services revenues		156			—			156
Public cloud revenues		—			308			308
Net revenues		2,686			308			2,994
Cost of product revenues		539			—			539
Cost of support revenues		97			—			97
Cost of professional and other services revenues		118			—			118
Cost of public cloud revenues		—			103			103
Segment cost of revenues		754			103			857
Segment gross profit	$	1,932		$	205		$	2,137
Segment gross margin		71.9	%		66.6	%		71.4	%
Unallocated cost of revenues1								31
Total gross profit							$	2,106
Total gross margin								70.3	%
1 Unallocated cost of revenues are composed of $14 million of stock-based compensation expense and $17 million of amortization of intangible assets.

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Geographical Revenues and Certain Assets

Revenues summarized by geographic region are as follows (in millions):

	Three Months Ended				Six Months Ended
	October 25,  2024		October 27, 2023		October 25,  2024		October 27, 2023
United States, Canada and Latin America (Americas)	$	862	$	789	$	1,625	$	1,543
Europe, Middle East and Africa (EMEA)		543		525		1,056		971
Asia Pacific (APAC)		253		248		518		480
Net revenues	$	1,658	$	1,562	$	3,199	$	2,994

Americas revenues consist of sales to Americas commercial and U.S. public sector markets. Sales to customers inside the U.S. were $807 million and $729 million during the three months ended October 25, 2024 and October 27, 2023, respectively, and were $1,506 million and $1,427 million during the six months ended October 25, 2024 and October 27, 2023, respectively.

The majority of our assets, excluding cash, cash equivalents, short-term investments and accounts receivable, were attributable to our domestic operations. The following table presents cash, cash equivalents and short-term investments held in the U.S. and internationally in various foreign subsidiaries (in millions):

	October 25,  2024		April 26,   2024
U.S.	$	311	$	1,142
International		1,911		2,110
Total	$	2,222	$	3,252

With the exception of property and equipment, we do not identify or allocate our long-lived assets by geographic area. The following table presents property and equipment information for geographic areas based on the physical location of the assets (in millions):

	October 25,  2024		April 26,   2024
U.S.	$	369	$	378
International		224		226
Total	$	593	$	604

Significant Customers

The following customers, each of which is a distributor, accounted for 10% or more of our net revenues:

	Three Months Ended						Six Months Ended
	October 25,  2024			October 27, 2023			October 25,  2024			October 27, 2023
Arrow Electronics, Inc.		21	%		22	%		22	%		23	%
TD Synnex Corporation		24	%		22	%		23	%		21	%

The following customers accounted for 10% or more of accounts receivable as of at least one of the dates presented:

	October 25,  2024			April 26,   2024
Arrow Electronics, Inc.		7	%		10	%
TD Synnex Corporation		26	%		26	%

14. Commitments and Contingencies

Purchase Orders and Other Commitments

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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 October 25, 2024, we had approximately $0.5 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 October 25, 2024 and April 26, 2024, such liability amounted to $17 million and $20 million, respectively, and is included in accrued expenses in our condensed 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 October 25, 2024, we had approximately $0.4 billion in other purchase obligations.

Financing Guarantees

While most of our arrangements for sales include short-term payment terms, from time to time we provide long-term financing to creditworthy customers. We have generally sold receivables financed through these arrangements on a non-recourse basis to third party financing institutions within 10 days of the contracts’ dates of execution, and we classify the proceeds from these sales as cash flows from operating activities in our condensed consolidated statements of cash flows. We account for the sales of these receivables as “true sales” as defined in the accounting standards on transfers of financial assets, as we are considered to have surrendered control of these financing receivables. Provided all other revenue recognition criteria have been met, we recognize product revenues for these arrangements, net of any payment discounts from financing transactions, upon product acceptance. We sold $26 million and $27 million of receivables during the six months ended October 25, 2024 and October 27, 2023, respectively.

In addition, we enter into arrangements with leasing companies for the sale of our hardware systems products. These leasing companies, in turn, lease our products to end-users. The leasing companies generally have no recourse to us in the event of default by the end-user and we recognize revenue upon delivery to the end-user customer, if all other revenue recognition criteria have been met.

Some of the leasing arrangements described above have been financed on a recourse basis through third-party financing institutions. Under the terms of recourse leases, which are generally three years or less, we remain liable for the aggregate unpaid remaining lease payments to the third-party leasing companies in the event of end-user customer default. These arrangements are generally collateralized by a security interest in the underlying assets. Where we provide a guarantee for recourse leases and collectability is probable, we account for these transactions as sales type leases. If collectability is not probable, the cash received is recorded as a deposit liability and revenue is deferred until the arrangement is deemed collectible. For leases that we are not a party to, other than providing recourse, we recognize revenue when control is transferred. As of October 25, 2024 and April 26, 2024, the aggregate amount by which such contingencies exceeded the associated liabilities was not significant. To date, we have not experienced significant losses under our lease financing programs or other financing arrangements.

We have entered into service contracts with certain of our end-user customers that are supported by third-party financing arrangements. If a service contract is terminated as a result of our non-performance under the contract or our failure to comply with the terms of the financing arrangement, we could, under certain circumstances, be required to acquire certain assets related to the service contract or to pay the aggregate unpaid financing payments under such arrangements. As of October 25, 2024, we have not been required to make any payments under these arrangements, and we believe the likelihood of having to acquire a material amount of assets or make material payments under these arrangements is remote. The portion of the financial arrangement that represents unearned services revenue is included in deferred revenue and financed unearned services revenue in our condensed consolidated balance sheets.

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 decisions by third parties that will determine the ultimate resolution of the contingency.

We are subject to various legal proceedings and claims that arise in the normal course of business. We may, from time to time, receive claims that we are infringing third parties’ intellectual property rights, including claims for alleged patent infringement brought by non-practicing entities. We are currently involved in patent litigation brought by non-practicing entities and other third parties. We believe we have strong arguments that our products do not infringe and/or the asserted patents are invalid, and we intend to vigorously defend against the plaintiffs’ claims. However, there is no guarantee that we will prevail at trial and if a jury were to find that our products infringe, we could be required to pay significant monetary damages, and may cause product shipment delays or stoppages, require us to redesign our products, or require us to enter into royalty or licensing agreements.

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Although management at present believes that the ultimate outcome of these proceedings, individually and in the aggregate, will not materially harm our financial position, results of operations, cash flows, or overall trends, legal proceedings are subject to inherent uncertainties, and unfavorable rulings or other events could occur. Unfavorable resolutions could include significant monetary damages. In addition, in matters for which injunctive relief or other conduct remedies are sought, unfavorable resolutions could include an injunction or other order prohibiting us from selling one or more products at all or in particular ways or requiring other remedies. An unfavorable outcome may result in a material adverse impact on our business, results of operations, financial position, cash flows and overall trends. No material accrual has been recorded as of October 25, 2024 related to such matters.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

This section and other parts of this Quarterly Report on Form 10-Q contain forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, that involve risks and uncertainties. Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. Forward-looking statements also can be identified by words such as “future,” “anticipates,” “believes,” “estimates,” “expects,” “intends,” “will,” “would,” “could,” “can,” “may,” and similar terms. Forward-looking statements are not guarantees of future performance and the actual results of NetApp, Inc. ("NetApp," “we,” “us,” or the “Company”) may differ significantly from the results discussed in the forward-looking statements. Factors that might cause such differences include, but are not limited to, those described in our Annual Report on Form 10-K for the year ended April 26, 2024 ("2024 Annual Report on Form 10-K"), including under the heading “Risk Factors” and discussed in this Form 10-Q under the heading “Risk Factors,” which are incorporated herein by reference. The following discussion should be read in conjunction with our consolidated financial statements as of and for the fiscal year ended April 26, 2024, and the notes thereto, contained in our 2024 Annual Report on Form 10-K, and the condensed consolidated financial statements and notes thereto included elsewhere in this Form 10-Q. We assume no obligation to revise or update any forward-looking statements for any reason, except as required by law.

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Overview

Our Company

NetApp helps customers make their data infrastructure more seamless, more dynamic, and higher performing. We were incorporated in 1992 and are headquartered in San Jose, California. Building on over three decades of innovation, we combine unified data storage, integrated data services, and CloudOps solutions to make data infrastructure intelligent. Our broad portfolio addresses customer priorities: modernizing legacy infrastructure, improving resiliency against ransomware attacks, and building scalable, high-performance data pipelines for artificial intelligence (AI) workloads.

With NetApp, customers can better leverage their data to accelerate innovation, improve operations, and drive competitive advantage. Our unified data storage delivers flexibility to our customers, enabling them to simply and consistently store any data type and power any workload. As the only enterprise-grade storage service natively embedded in the world’s largest clouds, we power data across AWS, Microsoft Azure, and Google Cloud. Our integrated data services enable active data management, security, protection, governance, and sustainability. Finally, our CloudOps solutions enable adaptive operations across infrastructure, applications, and teams.

Our operations are organized into two segments: Hybrid Cloud and Public Cloud.

Hybrid Cloud offers a unified data storage portfolio of storage management and infrastructure solutions that help customers modernize their data centers. Our Hybrid Cloud portfolio supports structured and unstructured data with unified storage optimized for flash, disk, and cloud storage to handle data-intensive workloads and applications. Hybrid Cloud is composed of software, hardware, and related support, as well as professional and other services.

Public Cloud offers a portfolio of products delivered primarily as-a-service, including related support. This portfolio includes cloud storage and CloudOps services. These solutions and services are generally available on the leading public clouds, including Amazon AWS, Microsoft Azure, and Google Cloud Platform.

Stock Repurchase and Dividend Activity

During the first six months of fiscal 2025, we repurchased approximately 5.8 million shares of our common stock at an average price of $121.58 per share, for an aggregate purchase price of $700 million. We also declared aggregate cash dividends of $1.04 per share in that period, for which we paid $213 million.

Restructuring Events

In the first six months of fiscal 2025, we approved restructuring plans to redirect resources to highest return activities and reduce costs. Aggregate charges recorded from the restructuring plans during the second quarter and first six months of fiscal 2025 totaled $12 million and $29 million, respectively.

Results of Operations

Our fiscal year is reported as a 52- or 53-week year that ends on the last Friday in April. Fiscal years 2025 and 2024, ending on April 25, 2025 and April 26, 2024, respectively, are each 52-week years, with 13 weeks in each of their quarters. Unless otherwise stated, references to particular years, quarters, months and periods refer to the Company’s fiscal years ended in April and the associated quarters, months and periods of those fiscal years.

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The following table sets forth certain condensed consolidated statements of income data as a percentage of net revenues for the periods indicated:

	Three Months Ended						Six Months Ended
	October 25,  2024			October 27, 2023			October 25,  2024			October 27, 2023
Net revenues:
Product		46	%		45	%		45	%		43	%
Services		54			55			55			57
Net revenues		100			100			100			100
Cost of revenues:
Cost of product		19			18			18			18
Cost of services		10			11			11			12
Gross profit		71			71			71			70
Operating expenses:
Sales and marketing		29			30			30			31
Research and development		16			17			16			17
General and administrative		5			5			5			5
Restructuring charges		1			—			1			1
Acquisition-related expense		—			—			—			—
Total operating expenses		50			52			52			54
Income from operations		21			19			20			16
Other income, net		1			1			1			1
Income before income taxes		22			20			21			17
Provision for income taxes		4			5			4			4
Net income		18	%		15	%		17	%		13	%

Percentages may not add due to rounding

Discussion and Analysis of Results of Operations

Net Revenues (in millions, except percentages):

	Three Months Ended							Six Months Ended
	October 25,  2024		October 27, 2023		% Change			October 25,  2024		October 27, 2023		% Change
Net revenues	$	1,658	$	1,562		6	%	$	3,199	$	2,994		7	%

The increase in net revenues for the second quarter and first six months of fiscal 2025 compared to the corresponding periods of fiscal 2024 was due to an increase in product revenues and, to a lesser extent, an increase in services revenues. Product revenues as a percentage of net revenues increased by one percentage point and two percentage points, respectively, in the second quarter and first six months of fiscal 2025 compared to the corresponding periods of fiscal 2024.

Product Revenues (in millions, except percentages):

	Three Months Ended							Six Months Ended
	October 25,  2024		October 27, 2023		% Change			October 25,  2024		October 27, 2023		% Change
Product revenues	$	768	$	706		9	%	$	1,437	$	1,296		11	%

Hybrid Cloud

In prior periods, we presented the hardware and software components of our GAAP product revenues to illustrate the significance and value of the Company’s software. Because our revenue recognition policy under GAAP defines a configured storage system, inclusive of the operating system software essential to its functionality, as a single performance obligation, hardware and software components of our product revenues are considered non-GAAP measures. Effective in fiscal 2025, we are no longer presenting the non-GAAP hardware and software components of our product revenues, as management no longer considers them to be key financial measures. The Company’s current strategy is expected to deliver investor value through growth in total revenues, including product revenues, while maintaining operational discipline to drive earnings leverage. While software continues to be the primary value driver of our products, NetApp is primarily focused on driving growth in total product revenues, through the sale of configured storage systems comprised of both hardware and software, with less focus on the pricing of each component. Additionally, the Company is considering potential opportunities to simplify pricing for certain products in the future, which may eliminate the existence of separate prices for hardware and software components and/or impact our ability to allocate between them.

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Product revenues are derived through the sale of our Hybrid Cloud solutions and consist of sales of configured all-flash array systems (including All-Flash FAS A-Series and All-Flash FAS C-Series with capacity flash) and hybrid systems, which are bundled hardware and software products, as well as add-on flash, disk and/or hybrid storage and related OS, StorageGrid, OEM products, NetApp HCI and add-on optional software.

Total product revenues increased in the second quarter and first six months of fiscal 2025 compared to the corresponding periods of the prior year due to higher sales of C-Series all-flash array systems.

Services Revenues (in millions, except percentages):

	Three Months Ended							Six Months Ended
	October 25,  2024		October 27, 2023		% Change			October 25,  2024		October 27, 2023		% Change
Services revenues	$	890	$	856		4	%	$	1,762	$	1,698		4	%
Support		635		623		2	%		1,266		1,234		3	%
Professional and other services		87		79		10	%		169		156		8	%
Public cloud		168		154		9	%		327		308		6	%

Hybrid Cloud

Hybrid Cloud services revenues are derived from the sale of: (1) support, which includes both hardware and software support contracts (the latter of which entitle customers to receive unspecified product upgrades and enhancements, bug fixes and patch releases), and (2) professional and other services, which include customer education and training.

Support revenues increased in the second quarter and first six months of fiscal 2025 compared to the corresponding periods of the prior year as a result of a higher aggregate support contract value for our installed base.

Professional and other services revenues increased by $8 million and $13 million in the second quarter and first six months of fiscal 2025, respectively, compared to the corresponding periods of the prior year.

Public Cloud

Public Cloud revenues are derived from the sale of public cloud offerings delivered primarily as-a-service, which include cloud storage and CloudOps services.

Public Cloud revenues increased in the second quarter and first six months of fiscal 2025 compared to the corresponding periods of the prior year, due to higher customer demand, driven by NetApp’s diversified cloud offerings and an overall growth in the cloud market.

Cost of Revenues

Our cost of revenues consists of:

(1) cost of product revenues, composed of (a) cost of Hybrid Cloud product revenues, which includes the costs of manufacturing and shipping our products, inventory write-downs, and warranty costs, and (b) unallocated cost of product revenues, which includes stock-based compensation, and;

(2) cost of services revenues, composed of (a) cost of support revenues, which includes the costs of providing support activities for hardware and software support, global support partnership programs, and third party royalty costs, (b) cost of professional and other services revenues, (c) cost of public cloud revenues, constituting the cost of providing our Public Cloud offerings, which includes depreciation and amortization expense and third party datacenter fees, and (d) unallocated cost of services revenues, which includes stock-based compensation and amortization of intangibles.

Cost of Product Revenues (in millions, except percentages):

	Three Months Ended							Six Months Ended
	October 25,  2024		October 27, 2023		% Change			October 25,  2024		October 27, 2023		% Change
Cost of product revenues	$	307	$	276		11	%	$	576	$	541		6	%
Hybrid Cloud		305		275		11	%		573		539		6	%
Unallocated		2		1		100	%		3		2		50	%

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Hybrid Cloud

Cost of Hybrid Cloud product revenues represented approximately 40% of product revenues for the second quarter and first six months of fiscal 2025 compared to 39% and 42%, respectively, for the corresponding periods of fiscal 2024. Materials costs represented 89% of cost of Hybrid Cloud product revenues for the second quarter and first six months of fiscal 2025, compared to 86% and 87%, respectively, for the corresponding periods of fiscal 2024.

Materials costs increased by $34 million and $38 million, respectively, in the second quarter and first six months of fiscal 2025 compared to the corresponding periods of the prior year.

Hybrid Cloud product gross margins remained relatively flat in the second quarter of fiscal 2025 compared to the corresponding period of the prior year. Hybrid Cloud product gross margins increased by approximately two percentage points in the first six months of fiscal 2025 compared to the corresponding period of the prior year, primarily due to lower component and freight costs.

Unallocated

Unallocated cost of product revenues were relatively flat in the second quarter and first six months of fiscal 2025 compared to the corresponding periods of the prior year.

Cost of Services Revenues (in millions, except percentages):

	Three Months Ended							Six Months Ended
	October 25,  2024		October 27, 2023		% Change			October 25,  2024		October 27, 2023		% Change
Cost of services revenues	$	174	$	176		(1	)%	$	348	$	347		—	%
Support		51		50		2	%		101		97		4	%
Professional and other services		64		60		7	%		128		118		8	%
Public cloud		44		52		(15	)%		90		103		(13	)%
Unallocated		15		14		7	%		29		29		—	%

Hybrid Cloud

Cost of Hybrid Cloud services revenues, which are composed of the costs of support and professional and other services, increased in the second quarter and first six months of fiscal 2025 compared to the corresponding periods of fiscal 2024. Cost of Hybrid Cloud services revenues represented approximately 16% of Hybrid Cloud services revenues for the second quarter and first six months of fiscal 2025 compared to 16% and 15%, respectively, for the corresponding periods of fiscal 2024.

Hybrid Cloud support gross margins were relatively flat in the second quarter and first six months of fiscal 2025 compared to the corresponding periods of the prior year. Hybrid Cloud professional and other services gross margins increased by approximately two percentage points in the second quarter of fiscal 2025 compared to the corresponding period of fiscal 2024 due to the mix of services provided. Hybrid Cloud professional and other services gross margins remained relatively flat in the first six months of fiscal 2025 compared to the corresponding period of fiscal 2024.

Public Cloud

Cost of Public Cloud revenues decreased in each the second quarter and first six months of fiscal 2025. Public Cloud gross margins increased by eight percentage points and six percentage points, respectively, in the second quarter and first six months of fiscal 2025 compared to the corresponding periods of fiscal 2024. The decrease in cost of Public Cloud revenues and improved gross margins was due to cost optimization that included a decrease in fixed assets depreciation, and the mix of offerings provided.

Unallocated

Unallocated cost of services revenues were relatively flat in the second quarter and first six months of fiscal 2025 compared to the corresponding periods of the prior year.

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Operating Expenses

Sales and Marketing, Research and Development and General and Administrative Expenses

Sales and marketing, research and development, and general and administrative expenses for the second quarter and first six months of fiscal 2025 totaled $819 million, or 49% of net revenues, and $1,617 million, or 51% of net revenues, respectively, each reflecting a decrease of two percentage points compared to the corresponding periods of fiscal 2024, primarily due to the increase in net revenues.

Compensation costs represent the largest component of sales and marketing, research and development and general and administrative expenses. Included in compensation costs are salaries, benefits, other compensation-related costs, stock-based compensation expense and employee incentive compensation plan costs.

Total compensation costs included in sales and marketing, research and development and general and administrative expenses in the second quarter and first six months of fiscal 2025, were relatively flat compared to the corresponding periods of the prior year.

Sales and Marketing (in millions, except percentages):

	Three Months Ended							Six Months Ended
	October 25,  2024		October 27, 2023		% Change			October 25,  2024		October 27, 2023		% Change
Sales and marketing expenses	$	485	$	461		5	%	$	956	$	929		3	%

Sales and marketing expenses consist primarily of compensation costs, commissions, outside services, facilities and IT support costs, advertising and marketing promotional expense and travel and entertainment expense.

The increases in sales and marketing expenses in the second quarter and first six months of fiscal 2025 compared to the corresponding periods of the prior year were primarily due to an increase in sales commissions expenses.

Research and Development (in millions, except percentages):

	Three Months Ended							Six Months Ended
	October 25,  2024		October 27, 2023		% Change			October 25,  2024		October 27, 2023		% Change
Research and development expenses	$	257	$	262		(2	)%	$	509	$	509		—	%

Research and development expenses consist primarily of compensation costs, facilities and IT support costs, depreciation, equipment and software related costs, prototypes, non-recurring engineering charges and other outside services costs.

The decrease in research and development expenses in the second quarter of fiscal 2025 compared to the corresponding period of the prior year was due to lower compensation costs driven by lower incentive compensation expense, partially offset by higher expenses in other components of compensation costs.

Research and development expenses remained relatively flat in the first six months of fiscal 2025 compared to the corresponding period of the prior year.

General and Administrative (in millions, except percentages):

	Three Months Ended							Six Months Ended
	October 25,  2024		October 27, 2023		% Change			October 25,  2024		October 27, 2023		% Change
General and administrative expenses	$	77	$	75		3	%	$	152	$	149		2	%

General and administrative expenses consist primarily of compensation costs, professional and corporate legal fees, outside services and facilities and IT support costs.

General and administrative expenses remained relatively flat in the second quarter and first six months of fiscal 2025 compared to the corresponding periods of the prior year.

Restructuring Charges (in millions, except percentages):

	Three Months Ended							Six Months Ended
	October 25,  2024		October 27, 2023		% Change			October 25,  2024		October 27, 2023		% Change
Restructuring charges	$	12	$	5		140	%	$	29	$	31		(6	)%

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In the first six months of fiscal 2025, management approved restructuring plans to redirect resources to highest return activities and reduce costs, which included a reduction of our global workforce by approximately 2%. Charges related to the plans consisted primarily of employee severance-related costs. The activities under the plans are expected to be substantially complete by the end of fiscal 2025.

In the first six months of fiscal 2024, management executed a restructuring plan to redirect resources to highest return activities, and to optimize our global office space for our hybrid work model. In connection with the plan, we reduced our global workforce by approximately 1% and terminated certain real estate leases in various countries, resulting in restructuring charges comprised primarily of employee severance-related expenses and lease termination charges. The activities under the plan were substantially complete by the end of fiscal 2024.

Acquisition-related Expense (in millions, except percentages):

	Three Months Ended							Six Months Ended
	October 25,  2024		October 27, 2023		% Change			October 25,  2024		October 27, 2023		% Change
Acquisition-related expense	$	1	$	3		(67	)%	$	2	$	6		(67	)%

Acquisition-related expenses decreased by $2 million and $4 million, respectively, in the second quarter and first six months of fiscal 2025 compared to the corresponding periods of the prior year.

Other Income, Net (in millions, except percentages)

The components of other income, net were as follows:

	Three Months Ended									Six Months Ended
	October 25,  2024			October 27, 2023			% Change			October 25,  2024			October 27, 2023			% Change
Interest income	$	27		$	25			8	%	$	63		$	53			19	%
Interest expense		(15	)		(15	)		—	%		(31	)		(31	)		—	%
Other, net		3			1		NM				—			(3	)	NM
Total	$	15		$	11		NM			$	32		$	19		NM

NM – Not Meaningful

Interest income increased in the second quarter and first six months of fiscal 2025 compared to the corresponding periods of the prior year, primarily due to higher yields earned on our cash and investments. Interest expense was relatively flat in the second quarter and first six months of fiscal 2025 compared to the corresponding periods of fiscal 2024.

Provision for Income Taxes (in millions, except percentages):

	Three Months Ended							Six Months Ended
	October 25,  2024		October 27, 2023		% Change			October 25,  2024		October 27, 2023		% Change
Provision for income taxes	$	61	$	82		(26	)%	$	112	$	119		(6	)%

Our effective tax rate for the three and six months ended October 25, 2024 includes an increase in discrete tax benefits related to stock compensation compared to the corresponding periods of the prior year. Our effective tax rate for the three and six months ended October 27, 2023 included a benefit for increased fiscal 2023 foreign tax credits resulting from legislative guidance for those periods partially offset by an increase in stock compensation for which no tax benefit is recorded.

As of October 25, 2024, we had $223 million of gross unrecognized tax benefits. Inclusive of penalties, interest and certain income tax benefits, $162 million would affect our provision for income taxes if recognized. Net unrecognized tax benefits of $161 million have been recorded in other long-term liabilities.

Liquidity, Capital Resources and Cash Requirements

(In millions)	October 25,  2024		April 26,   2024
Cash, cash equivalents and short-term investments	$	2,222	$	3,252
Principal amount of debt	$	2,000	$	2,400

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The following is a summary of our cash flow activities:

	Six Months Ended
(In millions)	October 25,  2024			October 27, 2023
Net cash provided by operating activities	$	446		$	588
Net cash provided by (used in) investing activities		513			(1	)
Net cash used in financing activities		(1,390	)		(942	)
Effect of exchange rate changes on cash, cash equivalents and restricted cash		9			(26	)
Net change in cash, cash equivalents and restricted cash	$	(422	)	$	(381	)

Cash Flows

As of October 25, 2024, our cash, cash equivalents and short-term investments were $2.2 billion, which represents a decrease of $1.0 billion during the first six months of fiscal 2025. The decrease was primarily due to $700 million used for the repurchase of our common stock, a $400 million principal repayment of our 3.30% Senior Notes due September 2024, $213 million used for the payment of dividends, $132 million used for payment of taxes related to net share settlement of stock awards and $86 million used for purchases of property and equipment, partially offset by $446 million provided by operating activities. Our net working capital deficit was $378 million as of October 25, 2024, a reduction of $1.2 billion when compared to April 26, 2024, primarily due to the decrease in cash, cash equivalents and short-term investments discussed above and the reclassification of $750 million principal amount of our Senior Notes from long-term to current liabilities.

Cash Flows from Operating Activities

During the first six months of fiscal 2025, we generated cash from operating activities of $446 million, reflecting net income of $547 million which was adjusted for non-cash depreciation and amortization expense of $126 million and non-cash stock-based compensation expense of $188 million, compared to $588 million of cash generated from operating activities during the first six months of fiscal 2024.

Significant changes in assets and liabilities in the first six months of fiscal 2025 included the following:

•Accounts receivable decreased $138 million, reflecting lower billings in the first six months of fiscal 2025 compared to the last six months of fiscal 2024.

•Inventory increased by $132 million, primarily due to higher raw materials purchases.

•Deferred revenue and financed unearned services revenue decreased by $164 million, due to a decrease in deferred revenue for software and hardware support contracts.

We expect that cash provided by operating activities may materially fluctuate in future periods due to a number of factors, including fluctuations in our operating results, shipping linearity, accounts receivable collections performance, inventory and supply chain management, vendor payment initiatives, and the timing and amount of compensation, income taxes and other payments.

Cash Flows from Investing Activities

During the first six months of fiscal 2025, we generated $597 million from maturities and sales of investments, net of purchases and paid $86 million for capital expenditures, as compared to the same period of fiscal 2024, in which we generated $72 million from maturities and sales of investments, net of purchases, and paid $73 million for capital expenditures.

Cash Flows from Financing Activities

During the first six months of fiscal 2025, cash flows used in financing activities totaled $1.4 billion and included $700 million for the repurchase of approximately 6 million shares of common stock, $400 million principal repayment upon maturity of our 3.30% Senior Notes due in September 2024 and $213 million for the payment of dividends. During the first six months of fiscal 2024, cash flows used in financing activities totaled $942 million and included $700 million for the repurchase of approximately 9 million shares of common stock and $209 million for the payment of dividends.

33

Key factors that could affect our cash flows include changes in our revenue mix and profitability, our ability to effectively manage our working capital, in particular, accounts receivable, accounts payable and inventories, the timing and amount of stock repurchases and payment of cash dividends, the impact of foreign exchange rate changes, our ability to effectively integrate acquired products, businesses and technologies and the timing of repayments of our debt. Based on past performance and our current business outlook, we believe that our sources of liquidity, including cash, cash equivalents and short-term investments, cash generated from operations, and our ability to access capital markets and committed credit lines will satisfy our working capital needs, capital expenditures, investment requirements, stock repurchases, cash dividends, contractual obligations, commitments, principal and interest payments on our debt and other liquidity requirements associated with operations and meet our cash requirements for at least the next 12 months and thereafter for the foreseeable future. However, in the event our liquidity is insufficient, we may be required to curtail spending and implement additional cost saving measures and restructuring actions or enter into new financing arrangements. We cannot be certain that we will continue to generate cash flows at or above current levels or that we will be able to obtain additional financing, if necessary, on satisfactory terms, if at all. For further discussion of factors that could affect our cash flows and liquidity requirements, see Item 1A. Risk Factors.

Liquidity

Our principal sources of liquidity as of October 25, 2024 consisted of cash, cash equivalents and short-term investments, cash we expect to generate from operations, and our commercial paper program and related credit facility.

Cash, cash equivalents and short-term investments consisted of the following (in millions):

	October 25,  2024		April 26,   2024
Cash and cash equivalents	$	1,478	$	1,903
Short-term investments		744		1,349
Total	$	2,222	$	3,252

As of October 25, 2024 and April 26, 2024, $1.9 billion and $2.1 billion, respectively, of cash, cash equivalents and short-term investments were held by various foreign subsidiaries and were generally based in U.S. dollar-denominated holdings, while $0.3 billion and $1.2 billion, respectively, were available in the U.S.

Our principal liquidity requirements are primarily to meet our working capital needs, support ongoing business activities, fund research and development, meet capital expenditure needs, invest in critical or complementary technologies through asset purchases and/or business acquisitions, service interest and principal payments on our debt, fund our stock repurchase program, and pay dividends, as and if declared. In the ordinary course of business, we engage in periodic reviews of opportunities to invest in or acquire companies or units in companies to expand our total addressable market, leverage technological synergies and establish new streams of revenue, particularly in our Public Cloud segment.

The principal objectives of our investment policy are the preservation of principal and maintenance of liquidity. We attempt to mitigate default risk by investing in high-quality investment grade securities, limiting the time to maturity and monitoring the counter-parties and underlying obligors closely. We believe our cash equivalents and short-term investments are liquid and accessible. We are not aware of any significant deterioration in the fair value of our cash equivalents or investments from the values reported as of October 25, 2024.

Our investment portfolio has been and will continue to be exposed to market risk due to trends in the credit and capital markets. We continue to closely monitor current economic and market events to minimize the market risk of our investment portfolio. We routinely monitor our financial exposure to both sovereign and non-sovereign borrowers and counterparties. We utilize a variety of planning and financing strategies in an effort to ensure our worldwide cash is available when and where it is needed. We also have an automatic shelf registration statement on file with the U.S. Securities and Exchange Commission (SEC). We may in the future offer an additional unspecified amount of debt, equity and other securities.

Senior Notes

The following table summarizes the principal amount of our Senior Notes as of October 25, 2024 (in millions):

	Amount
1.875% Senior Notes Due June 2025	$	750
2.375% Senior Notes Due June 2027		550
2.70% Senior Notes Due June 2030		700
Total	$	2,000

34

Interest on the Senior Notes is payable semi-annually. For further information on the underlying terms, see Note 6 – Financing Arrangements of the Notes to Condensed Consolidated Financial Statements included in Part I, Item 1.

On September 30, 2024, upon maturity, we repaid our 3.30% Senior Notes due September 2024 for an aggregate amount of $407 million, comprised of the principal and unpaid interest.

Commercial Paper Program and Credit Facility

We have a commercial paper program (the “Program”), under which we may issue unsecured commercial paper notes. Amounts available under the Program may be borrowed, repaid and re-borrowed, with the aggregate face or principal amount of the notes outstanding under the Program at any time not to exceed $1.0 billion. The maturities of the notes can vary but may not exceed 397 days from the date of issue. The notes are sold under customary terms in the commercial paper market and may be issued at a discount from par or, alternatively, may be sold at par and bear interest at rates dictated by market conditions at the time of their issuance. The proceeds from the issuance of the notes are used for general corporate purposes. No commercial paper notes were outstanding as of October 25, 2024.

In connection with the Program, we have a senior unsecured credit agreement with a syndicated group of lenders. The credit agreement, which was amended in May 2023, provides for a $1.0 billion revolving unsecured credit facility, with a sublimit of $50 million available for the issuance of letters of credit on our behalf. The credit facility matures on January 22, 2026, with an option for us to extend the maturity date for two additional 1-year periods, subject to certain conditions. The proceeds of the loans may be used by us for general corporate purposes and as liquidity support for our existing commercial paper program. As of October 25, 2024, we were compliant with all associated covenants in the agreement. No amounts were drawn against this credit facility during any of the periods presented.

Capital Expenditure Requirements

We expect to fund our capital expenditures, including our commitments related to facilities, equipment, operating leases and internal-use software development projects over the next few years through existing cash, cash equivalents, investments and cash generated from operations. The timing and amount of our capital requirements cannot be precisely determined and will depend on a number of factors, including future demand for products, changes in the network storage industry, hiring plans and our decisions related to the financing of our facilities and equipment requirements. We anticipate capital expenditures for the remainder of fiscal 2025 to be between $50 million and $100 million.

Transition Tax Payments

The Tax Cuts and Jobs Act of 2017 imposed a mandatory, one-time transition tax on accumulated foreign earnings and profits that had not previously been subject to U.S. income tax. As of October 25, 2024, the outstanding payment related to the transition tax is estimated to be approximately $100 million which is expected to be paid during fiscal 2026. Our estimates for future transition tax payments, however, could change with further guidance or review from U.S. federal and state tax authorities or other regulatory bodies.

Dividends and Stock Repurchase Program

On November 19, 2024, we declared a cash dividend of $0.52 per share of common stock, payable on January 22, 2025, to holders of record as of the close of business on January 3, 2025.

In the first quarter of fiscal 2025, our Board of Directors authorized the repurchase of an additional $1.0 billion of our common stock. As of October 25, 2024, our Board of Directors had authorized cumulative repurchases of up to $17.1 billion of our common stock under our stock repurchase program. Under this program, we may purchase shares of our outstanding common stock through solicited or unsolicited transactions in the open market, in privately negotiated transactions, through accelerated share repurchase programs, pursuant to a Rule 10b5-1 plan or in such other manner as deemed appropriate by our management. The stock repurchase program may be suspended or discontinued at any time. Since the May 13, 2003 inception of this program through October 25, 2024, we repurchased a total of 377 million shares of our common stock at an average price of $43.25 per share, for an aggregate purchase price of $16.3 billion. As of October 25, 2024, the remaining authorized amount for stock repurchases under this program was $0.8 billion.

Purchase 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. In addition, 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. These off-balance sheet purchase commitments totaled approximately $0.9 billion at October 25, 2024.

35

Financing Guarantees

We have and continue to enter into financing and leasing contracts through the ordinary course of business. These arrangements and related financing guarantees are described in Note 14 – Commitments and Contingencies of the Notes to Condensed Consolidated Financial Statements included in Part I, Item 1. There has been no material change in our financing guarantees as described in our 2024 Annual Report on Form 10-K.

Legal Contingencies

We are subject to various legal proceedings and claims which arise in the normal course of business. See further details on such matters in Note 14 – Commitments and Contingencies of the Notes to Condensed Consolidated Financial Statements included in Part I, Item 1.

Critical Accounting Policies and Estimates

There have been no material changes to our critical accounting policies and estimates as described in our 2024 Annual Report on Form 10-K.

36

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

There have been no material changes in our market risk exposures for the six months ended October 25, 2024, as compared to those discussed in our Annual Report on Form 10-K for the year ended April 26, 2024.

37

Item 4. Controls and Procedures.

Disclosure Controls and Procedures

The phrase “disclosure controls and procedures” refers to controls and procedures designed to ensure that information required to be disclosed in our reports filed or submitted under the Securities Exchange Act of 1934, as amended (the Exchange Act), such as this Quarterly Report on Form 10-Q, is recorded, processed, summarized, and reported within the time periods specified in the rules and forms of the U.S. Securities and Exchange Commission (SEC). Disclosure controls and procedures are also designed to ensure that such information is accumulated and communicated to our management, including our CEO and CFO, as appropriate to allow timely decisions regarding required disclosure.

Under the supervision and with the participation of our management, including our CEO and CFO, we conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, as of October 25, 2024, the end of the fiscal period covered by this Quarterly Report on Form 10-Q (the Evaluation Date). Based on this evaluation, our CEO and CFO concluded as of the Evaluation Date that our disclosure controls and procedures were effective such that the information required to be disclosed in our SEC reports (i) is recorded, processed, summarized, and reported within the time periods specified in SEC rules and forms, and (ii) is accumulated and communicated to our management, including our CEO and CFO, as appropriate to allow timely decisions regarding required disclosure.

Changes in Internal Control Over Financial Reporting

There has been no change in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) identified in connection with our evaluation that occurred during the second quarter of fiscal 2025 that has materially affected or is reasonably likely to materially affect our internal control over financial reporting.

38

PART II — OTHER INFORMATION

Item 1. Legal Proceedings.

For a discussion of legal proceedings, see Note 14 – Commitments and Contingencies of the Notes to Condensed Consolidated Financial Statements included in Part I, Item 1.

Item 1A. Risk Factors.

Our future business, operations and financial results are subject to various risks and uncertainties, including those described in Part I, Item 1A, “Risk Factors” in our Annual Report on Form 10-K for the year ended April 26, 2024, which could adversely affect our business, financial condition, results of operations, cash flows, and the trading price of our common and capital stock. There have been no material changes to the Company’s risk factors since our Annual Report on Form 10-K for the year ended April 26, 2024.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Purchases of equity securities

The following table provides information with respect to the shares of common stock repurchased by us during the three months ended October 25, 2024:

					Total Number of Shares		Approximate Dollar Value
	Total Number		Average		Purchased as Part of		of Shares That May Yet
	of Shares		Price Paid		Publicly Announced		Be Purchased Under The
Period	Purchased		per Share		Program		Repurchase Program
	(Shares in thousands)				(Shares in thousands)		(Dollars in millions)
July 27, 2024 - August 23, 2024		750	$	107.51		375,670	$	1,009
August 24, 2024 - September 20, 2024		734	$	121.93		376,404	$	920
September 21, 2024 - October 25, 2024		952	$	129.04		377,356	$	802
Total		2,436	$	121.58

In May 2003, our Board of Directors approved a stock repurchase program. As of October 25, 2024, our Board of Directors has authorized the repurchase of up to $17.1 billion of our common stock under our stock repurchase program. Since the May 13, 2003 inception of the program through October 25, 2024, we repurchased a total of 377 million shares of our common stock for an aggregate purchase price of $16.3 billion. Under this program, we may purchase shares of our outstanding common stock through solicited or unsolicited transactions in the open market, in privately negotiated transactions, through accelerated share repurchase programs, pursuant to a Rule 10b5-1 plan or in such other manner as deemed appropriate by our management. The stock repurchase program may be suspended or discontinued at any time.

Item 3. Defaults upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

Not Applicable.

Item 5. Other Information.

Insider Adoption or Termination of Trading Arrangements

On September 5, 2024, The Berry Family Trust, a trust affiliated with Michael J. Berry, Chief Financial Officer of the Company, entered into a 10b5-1 trading arrangement intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) promulgated under the Exchange Act. The trading arrangement will expire on July 7, 2025, and may be terminated earlier in the limited circumstances defined in the trading arrangement. An aggregate of up to 95,000 shares may be sold pursuant to the trading arrangement.

No other directors or executive officers of the Company adopted, modified or terminated any contract, instruction or written plan for the purchase or sale of the Company’s securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) or any non-Rule 10b5-1 trading arrangement (as defined in Item 408(c) of Regulation S-K), during the quarterly period covered by this report.

39

Item 6. Exhibits.

The following documents are filed as exhibits to this report.

		Incorporation by Reference
Exhibit No	Description	Form	File No.	Exhibit	Filing Date
10.1*	NetApp, Inc. 2021 Equity Incentive Plan, as amended effective September 11, 2024	8-K	000-27130	10.1	September 12, 2024
31.1	Certification of the Chief Executive Officer pursuant to Section 302(a) of the Sarbanes-Oxley Act of 2002.	—	—	—	—
31.2	Certification of the Chief Financial Officer pursuant to Section 302(a) of the Sarbanes-Oxley Act of 2002.	—	—	—	—
32.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002.	—	—	—	—
32.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002.	—	—	—	—
101.INS	Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document	—	—	—	—
101.SCH	Inline XBRL Taxonomy Extension Schema With Embedded Linkbase Documents	—	—	—	—
104	Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)	—	—	—	—

*Identifies management plan or compensatory plan or arrangement

40

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

NETAPP, INC.

(Registrant)

/s/ MICHAEL J. BERRY

Michael J. Berry

Executive Vice President and Chief Financial Officer

Date: November 25, 2024

41

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO SECTION 302(a)

OF THE SARBANES-OXLEY ACT OF 2002

I, George Kurian, certify that:

1) I have reviewed this Quarterly Report on Form 10-Q of NetApp, Inc.;

2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4) The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5) The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/s/ GEORGE KURIAN

George Kurian

Chief Executive Officer and Director

(Principal Executive Officer and Principal Operating Officer)

Date: November 25, 2024

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO SECTION 302(a)

OF THE SARBANES-OXLEY ACT OF 2002

I, Michael J. Berry, certify that:

1) I have reviewed this Quarterly Report on Form 10-Q of NetApp, Inc.;

2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4) The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5) The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/s/ MICHAEL J. BERRY

Michael J. Berry

Executive Vice President and Chief Financial Officer

(Principal Financial Officer)

Date: November 25, 2024

EX-32.1

Exhibit 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, George Kurian, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report of NetApp, Inc., on Form 10-Q for the quarterly period ended October 25, 2024 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, and that information contained in such Quarterly Report on Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of NetApp, Inc.

/s/ GEORGE KURIAN

George Kurian

Chief Executive Officer and Director

(Principal Executive Officer and Principal Operating Officer)

Date: November 25, 2024

EX-32.2

Exhibit 32.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Michael J. Berry, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report of NetApp, Inc., on Form 10-Q for the quarterly period ended October 25, 2024 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, and that information contained in such Quarterly Report on Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of NetApp, Inc.

/s/ MICHAEL J. BERRY

Michael J. Berry

Executive Vice President and Chief Financial Officer

(Principal Financial Officer)

Date: November 25, 2024

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	Oct. 25, 2024	Nov. 21, 2024
Cover [Abstract]
Document Type	10-Q
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Document Period End Date	Oct. 25, 2024
Document Fiscal Year Focus	2025
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Entity Tax Identification Number	77-0307520
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Entity Address, State or Province	CA
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CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions	Oct. 25, 2024	Apr. 26, 2024
Current assets:
Cash and cash equivalents	$ 1,478	$ 1,903
Short-term investments	744	1,349
Accounts receivable	873	1,007
Inventories	317	186
Other current assets	527	452
Total current assets	3,939	4,897
Property and equipment, net	593	604
Goodwill	2,759	2,759
Purchased intangible assets, net	96	124
Other non-current assets	1,617	1,503
Total assets	9,004	9,887
Current liabilities:
Accounts payable	554	517
Accrued expenses	969	1,013
Current portion of long-term debt	749	400
Short-term deferred revenue and financed unearned services revenue	2,045	2,176
Total current liabilities	4,317	4,106
Long-term debt	1,244	1,992
Other long-term liabilities	496	585
Long-term deferred revenue and financed unearned services revenue	2,055	2,058
Total liabilities	8,112	8,741
Commitments and contingencies (Note 14)
Stockholders' equity:
Common stock and additional paid-in capital, $0.001 par value; 203 and 206 shares issued and outstanding as of October 25, 2024 and April 26, 2024, respectively	947	997
Retained earnings	0	208
Accumulated other comprehensive loss	(55)	(59)
Total stockholders' equity	892	1,146
Total liabilities and stockholders' equity	$ 9,004	$ 9,887

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CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares shares in Millions	Oct. 25, 2024	Apr. 26, 2024
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares issued	203	206
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Oct. 25, 2024	Oct. 27, 2023	Oct. 25, 2024	Oct. 27, 2023
Net revenues:
Net revenues	$ 1,658	$ 1,562	$ 3,199	$ 2,994
Cost of revenues:
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Gross profit	1,177	1,110	2,275	2,106
Operating expenses:
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Research and development	257	262	509	509
General and administrative	77	75	152	149
Restructuring charges	12	5	29	31
Acquisition-related expense	1	3	2	6
Total operating expenses	832	806	1,648	1,624
Income from operations	345	304	627	482
Other income, net	15	11	32	19
Income before income taxes	360	315	659	501
Provision for income taxes	61	82	112	119
Net income	$ 299	$ 233	$ 547	$ 382
Net income per share:
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Diluted	$ 1.42	$ 1.1	$ 2.59	$ 1.79
Shares used in net income per share calculations:
Basic	204	208	205	210
Diluted	210	211	211	214
Product [Member]
Net revenues:
Net revenues	$ 768	$ 706	$ 1,437	$ 1,296
Cost of revenues:
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Service [Member]
Net revenues:
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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Oct. 25, 2024	Oct. 27, 2023	Oct. 25, 2024	Oct. 27, 2023
Statement of Comprehensive Income [Abstract]
Net Income (Loss)	$ 299	$ 233	$ 547	$ 382
Other comprehensive income (loss):
Foreign currency translation adjustments	3	(7)	4	(5)
Unrealized gains on available-for-sale securities:
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Unrealized gains (losses) on cash flow hedges:
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Comprehensive income	$ 303	$ 226	$ 551	$ 378

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions	6 Months Ended
	Oct. 25, 2024	Oct. 27, 2023
Cash flows from operating activities:
Net Income (Loss)	$ 547	$ 382
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	126	128
Non-cash operating lease cost	21	23
Stock-based compensation	188	180
Deferred income taxes	(69)	(13)
Other items, net	35	(27)
Changes in assets and liabilities, net of acquisitions of businesses:
Accounts receivable	138	185
Inventories	(132)	46
Other operating assets	(107)	(26)
Accounts payable	36	14
Accrued expenses	(84)	48
Deferred revenue and financed unearned services revenue	(164)	(241)
Long-term taxes payable	(91)	(110)
Other operating liabilities	2	(1)
Net cash provided by operating activities	446	588
Cash flows from investing activities:
Purchases of investments	(882)	(860)
Maturities, sales and collections of investments	1,479	932
Purchases of property and equipment	(86)	(73)
Other investing activities, net	2	0
Net cash provided by (used in) investing activities	513	(1)
Cash flows from financing activities:
Proceeds from issuance of common stock under employee stock award plans	55	52
Payments for taxes related to net share settlement of stock awards	(132)	(85)
Repurchase of common stock	(700)	(700)
Repayments and extinguishment of debt	(400)	0
Dividends paid	(213)	(209)
Net cash used in financing activities	(1,390)	(942)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	9	(26)
Net change in cash, cash equivalents and restricted cash	(422)	(381)
Cash, cash equivalents and restricted cash:
Beginning of period	1,909	2,322
End of period	$ 1,487	$ 1,941

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CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Millions	Total	Common Stock and Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Loss
Balances at Apr. 28, 2023	$ 1,159	$ 945	$ 265	$ (51)
Balances (in shares) at Apr. 28, 2023		212,000,000
Net Income (Loss)	382		382
Other comprehensive loss	(4)			(4)
Issuance of common stock under employee stock award plans, net of taxes	(33)	$ (33)
Issuance of common stock under employee stock award plans, net of taxes (in shares)		3,000,000
Repurchase of common stock	(700)	$ (91)	(609)
Repurchase of common stock, shares		(9,000,000)
Excise tax on net stock repurchases	(5)	$ (5)
Stock-based compensation	176	176
Modification of liability-classified awards	4	4
Cash dividends declared	(209)	(171)	(38)
Balances at Oct. 27, 2023	770	$ 825	0	(55)
Balances (in shares) at Oct. 27, 2023		206,000,000
Balances at Jul. 28, 2023	873	$ 921	0	(48)
Balances (in shares) at Jul. 28, 2023		209,000,000
Net Income (Loss)	233		233
Other comprehensive loss	(7)			(7)
Issuance of common stock under employee stock award plans, net of taxes	(20)	$ (20)
Issuance of common stock under employee stock award plans, net of taxes (in shares)		1,000,000
Repurchase of common stock	(300)	$ (67)	(233)
Repurchase of common stock, shares		(4,000,000)
Excise tax on net stock repurchases	(3)	$ (3)
Stock-based compensation	93	93
Modification of liability-classified awards	4	4
Cash dividends declared	(103)	(103)
Balances at Oct. 27, 2023	770	$ 825	0	(55)
Balances (in shares) at Oct. 27, 2023		206,000,000
Balances at Apr. 26, 2024	$ 1,146	$ 997	208	(59)
Balances (in shares) at Apr. 26, 2024	206,000,000	206,000,000
Net Income (Loss)	$ 547		547
Other comprehensive loss	4			4
Issuance of common stock under employee stock award plans, net of taxes	(77)	$ (77)
Issuance of common stock under employee stock award plans, net of taxes (in shares)		3,000,000
Repurchase of common stock	(700)	$ (28)	(672)
Repurchase of common stock, shares		(6,000,000)
Excise tax on net stock repurchases	(3)	$ (3)
Stock-based compensation	188	188
Cash dividends declared	(213)	(130)	(83)
Balances at Oct. 25, 2024	$ 892	$ 947	0	(55)
Balances (in shares) at Oct. 25, 2024	203,000,000	203,000,000
Balances at Jul. 26, 2024	$ 929	$ 988		(59)
Balances (in shares) at Jul. 26, 2024		205,000,000
Net Income (Loss)	299		299
Other comprehensive loss	4			4
Issuance of common stock under employee stock award plans, net of taxes	(35)	$ (35)
Issuance of common stock under employee stock award plans, net of taxes (in shares)		1,000,000
Repurchase of common stock	(300)	$ (12)	(288)
Repurchase of common stock, shares		(3,000,000)
Excise tax on net stock repurchases	(2)	$ (2)
Stock-based compensation	103	103
Cash dividends declared	(106)	(95)	(11)
Balances at Oct. 25, 2024	$ 892	$ 947	$ 0	$ (55)
Balances (in shares) at Oct. 25, 2024	203,000,000	203,000,000

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CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares		3 Months Ended		6 Months Ended
	Nov. 19, 2024	Oct. 25, 2024	Oct. 27, 2023	Oct. 25, 2024	Oct. 27, 2023
Statement of Stockholders' Equity [Abstract]
Cash dividends declared, per common share	$ 0.52	$ 0.52	$ 0.5	$ 1.04	$ 1

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Pay vs Performance Disclosure - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Oct. 25, 2024	Oct. 27, 2023	Oct. 25, 2024	Oct. 27, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ 299	$ 233	$ 547	$ 382

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Insider Trading Arrangements
shares in Millions

3 Months Ended

Oct. 25, 2024

shares

Trading Arrangements, by Individual

Material Terms of Trading Arrangement

Item 5. Other Information.

Insider Adoption or Termination of Trading Arrangements

On September 5, 2024, The Berry Family Trust, a trust affiliated with Michael J. Berry, Chief Financial Officer of the Company, entered into a 10b5-1 trading arrangement intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) promulgated under the Exchange Act. The trading arrangement will expire on July 7, 2025, and may be terminated earlier in the limited circumstances defined in the trading arrangement. An aggregate of up to 95,000 shares may be sold pursuant to the trading arrangement.

No other directors or executive officers of the Company adopted, modified or terminated any contract, instruction or written plan for the purchase or sale of the Company’s securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) or any non-Rule 10b5-1 trading arrangement (as defined in Item 408(c) of Regulation S-K), during the quarterly period covered by this report.

Rule 10b5-1 Arrangement Adopted

false

Non-Rule 10b5-1 Arrangement Adopted

false

Rule 10b5-1 Arrangement Terminated

false

Non-Rule 10b5-1 Arrangement Terminated

false

Non-Rule 10b5-1 Arrangement Modified

false

Rule 10b5-1 Arrangement Modified

false

Michael J.Berry [Member]

Trading Arrangements, by Individual

Name

Michael J. Berry

Title

Chief Financial Officer

Rule 10b5-1 Arrangement Adopted

true

Adoption Date

September 5, 2024

Expiration Date

July 7, 2025

Aggregate Available

95,000

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Description of Business and Significant Accounting Policies

6 Months Ended

Oct. 25, 2024

Accounting Policies [Abstract]

Description of Business and Significant Accounting Policies

1. Description of Business and Significant Accounting Policies

NetApp, Inc. (we, us, NetApp, or the Company) makes data infrastructure intelligent by combining unified data storage, integrated data services, and CloudOps solutions. NetApp creates silo-free infrastructure, harnessing observability and artificial intelligence to enable seamless data management. We provide a full range of enterprise-class software, systems and services that customers use to transform their data infrastructures across data types, workloads, and environments to realize business possibilities.

Basis of Presentation and Preparation

Our fiscal year is reported on a 52- or 53-week year ending on the last Friday in April. An additional week is included in the first fiscal quarter approximately every six years to realign fiscal months with calendar months. Fiscal years 2025 and 2024, ending on April 25, 2025 and April 26, 2024, respectively, are each 52-week years, with 13 weeks in each quarter.

The accompanying unaudited condensed consolidated financial statements have been prepared by the Company, and reflect all adjustments, consisting only of normal recurring adjustments, that are, in the opinion of management, necessary for the fair presentation of our financial position, results of operations, comprehensive income, cash flows and stockholders’ equity for the interim periods presented. The statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information. Accordingly, these statements do not include all information and footnotes required by GAAP for annual consolidated financial statements, and should be read in conjunction with our audited consolidated financial statements as of and for the fiscal year ended April 26, 2024 contained in our Annual Report on Form 10-K. The results of operations for the three and six months ended October 25, 2024 are not necessarily indicative of the operating results to be expected for the full fiscal year or future operating periods.

The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Such estimates include, but are not limited to, revenue recognition, reserves and allowances; inventory valuation; valuation of goodwill and intangibles; restructuring reserves; employee benefit accruals; stock-based compensation; loss contingencies; investment impairments; income taxes and fair value measurements. Actual results could differ materially from those estimates, the anticipated effects of which have been incorporated, as applicable, into management's estimates as of October 25, 2024.

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Recent Accounting Pronouncements

6 Months Ended

Oct. 25, 2024

Accounting Standards Update and Change in Accounting Principle [Abstract]

Recent Accounting Pronouncements

2. Recent Accounting Pronouncements

In November 2024, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update ("ASU") 2024-03, Income Statement - Reporting Comprehensive Income - Expense 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 beginning after December 15, 2027, with early adoption permitted. The requirements should be applied on a prospective basis while retrospective application is permitted. We are currently evaluating the effect of this pronouncement on our disclosures.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which expands the disclosures required for income taxes. This ASU is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The amendment should be applied on a prospective basis while retrospective application is permitted. We are currently evaluating the effect of this pronouncement on our income tax disclosures.

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires disclosure of incremental segment information on an annual and interim basis. This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024 on a retrospective basis. We will adopt the new requirements for our annual periods starting in fiscal 2025 (and interim periods thereafter). We are currently evaluating the effect of this pronouncement, which we expect to result in enhanced financial statement disclosures only.

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Goodwill and Purchased Intangible Assets, Net

6 Months Ended

Oct. 25, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Purchased Intangible Assets, Net

3. Goodwill and Purchased Intangible Assets, Net

Goodwill by reportable segment as of October 25, 2024 is as follows (in millions):

	Amount
Hybrid Cloud	$	1,714
Public Cloud		1,045
Total goodwill	$	2,759

Purchased intangible assets, net are summarized below (in millions):

	October 25,  2024							April 26,   2024
	Gross		Accumulated			Net		Gross		Accumulated			Net
	Assets		Amortization			Assets		Assets		Amortization			Assets
Developed technology	$	163	$	(109	)	$	54	$	179	$	(108	)	$	71
Customer contracts/relationships		108		(67	)		41		114		(62	)		52
Other purchased intangibles		3		(2	)		1		6		(5	)		1
Total purchased intangible assets	$	274	$	(178	)	$	96	$	299	$	(175	)	$	124

During the first six months of fiscal 2025, we retired approximately $25 million of fully amortized intangible assets.

Amortization expense for purchased intangible assets is summarized below (in millions):

	Three Months Ended				Six Months Ended				Statements of
	October 25,  2024		October 27, 2023		October 25,  2024		October 27, 2023		Income Classification
Developed technology	$	9	$	8	$	17	$	17	Cost of revenues
Customer contracts/relationships		5		6		11		11	Operating expenses
Other purchased intangibles		—		—		—		1	Operating expenses
Total	$	14	$	14	$	28	$	29

As of October 25, 2024, future amortization expense related to purchased intangible assets is as follows (in millions):

Fiscal Year	Amount
2025 (remainder)	$	27
2026		39
2027		29
2028		1
Total	$	96

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Supplemental Financial Information

6 Months Ended

Oct. 25, 2024

Supplemental Financial Information [Abstract]

Supplemental Financial Information

4. Supplemental Financial Information

Cash and cash equivalents (in millions):

The following table presents cash and cash equivalents as reported in our condensed consolidated balance sheets, as well as the sum of cash, cash equivalents and restricted cash as reported on our condensed consolidated statements of cash flows:

	October 25,  2024		April 26,   2024
Cash and cash equivalents	$	1,478	$	1,903
Restricted cash		9		6
Cash, cash equivalents and restricted cash	$	1,487	$	1,909

Inventories (in millions):

	October 25,  2024		April 26,   2024
Purchased components	$	229	$	116
Finished goods		88		70
Inventories	$	317	$	186

Property and equipment, net (in millions):

	October 25,  2024			April 26,   2024
Land	$	46		$	46
Buildings and improvements		371			367
Leasehold improvements		86			81
Computer, production, engineering and other equipment		1,141			1,101
Computer software		349			340
Furniture and fixtures		67			77
Construction-in-progress		68			70
		2,128			2,082
Accumulated depreciation and amortization		(1,535	)		(1,478	)
Property and equipment, net	$	593		$	604

Other non-current assets (in millions):

	October 25,  2024		April 26,   2024
Deferred tax assets	$	966	$	896
Operating lease right-of-use (ROU) assets		242		247
Other assets		409		360
Other non-current assets	$	1,617	$	1,503

Other non-current assets as of October 25, 2024 and April 26, 2024 include $87 million and $85 million, respectively, for our 49% non-controlling equity interest in Lenovo NetApp Technology Limited (LNTL), a China-based entity that we formed with Lenovo (Beijing) Information Technology Ltd. in fiscal 2019. LNTL is integral to our sales channel strategy in China, acting as a distributor of our offerings to customers headquartered there, and involved in certain OEM sales to Lenovo. LNTL is also focused on localizing our products and services, and developing new joint offerings for the China market by leveraging NetApp and Lenovo technologies.

Accrued expenses (in millions):

	October 25,  2024		April 26,   2024
Accrued compensation and benefits	$	423	$	538
Product warranty liabilities		18		18
Operating lease liabilities		41		40
Other current liabilities		487		417
Accrued expenses	$	969	$	1,013

Other long-term liabilities (in millions):

	October 25,  2024		April 26,   2024
Liability for uncertain tax positions	$	161	$	153
Income taxes payable		—		100
Product warranty liabilities		9		9
Operating lease liabilities		216		220
Other liabilities		110		103
Other long-term liabilities	$	496	$	585

Deferred revenue and financed unearned services revenue

The following table summarizes the components of our deferred revenue and financed unearned services revenue balance as reported in our condensed consolidated balance sheets (in millions):

	October 25,  2024		April 26,   2024
Deferred product revenue	$	57	$	59
Deferred services revenue		4,001		4,123
Financed unearned services revenue		42		52
Total	$	4,100	$	4,234
Reported as:
Short-term	$	2,045	$	2,176
Long-term		2,055		2,058
Total	$	4,100	$	4,234

Deferred product revenue represents unrecognized revenue related to undelivered product commitments and other product deliveries that have not met all revenue recognition criteria. Deferred services revenue represents customer payments made in advance for services, which include software and hardware support contracts, certain public cloud services and other services. Financed unearned services revenue represents undelivered services for which cash has been received under certain third-party financing arrangements. See Note 14 – Commitments and Contingencies for additional information related to these arrangements.

During the six months ended October 25, 2024 and October 27, 2023, we recognized revenue of $1,264 million and $1,258 million, respectively, that was included in the deferred revenue and financed unearned services revenue balance at the beginning of the respective periods.

Remaining performance obligations

As of October 25, 2024, the aggregate amount of the transaction price allocated to the remaining performance obligations related to customer contracts that are unsatisfied or partially unsatisfied was $4.4 billion. Because customer orders are typically placed on an as-needed basis, and cancellable without penalty prior to shipment, orders in backlog may not be a meaningful indicator of future revenue and have not been included in this amount. We expect to recognize as revenue approximately 49% of our remaining performance obligations in the next 12 months and the remainder thereafter.

Deferred commissions

The following table summarizes deferred commissions balances as reported in our condensed consolidated balance sheets (in millions):

	October 25,  2024		April 26,   2024
Other current assets	$	67	$	69
Other non-current assets		102		100
Total deferred commissions	$	169	$	169

Other income, net (in millions):

	Three Months Ended						Six Months Ended
	October 25,  2024			October 27, 2023			October 25,  2024			October 27, 2023
Interest income	$	27		$	25		$	63		$	53
Interest expense		(15	)		(15	)		(31	)		(31	)
Other, net		3			1			—			(3	)
Total other income, net	$	15		$	11		$	32		$	19

Statements of cash flows additional information (in millions):

Supplemental cash flow information related to our operating leases is included in Note 7 ─ Leases. Non-cash investing activities and other supplemental cash flow information are presented below:

	Six Months Ended
	October 25,  2024		October 27, 2023
Non-cash Investing Activities:
Capital expenditures incurred but not paid	$	16	$	18
Supplemental Cash Flow Information:
Income taxes paid, net of refunds	$	222	$	222
Interest paid	$	30	$	30

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Financial Instruments and Fair Value Measurements

6 Months Ended

Oct. 25, 2024

Investments, Debt and Equity Securities [Abstract]

Financial Instruments and Fair Value Measurements

5. Financial Instruments and Fair Value Measurements

The accounting guidance for fair value measurements provides a framework for measuring fair value on either a recurring or nonrecurring basis, whereby the inputs used in valuation techniques are assigned a hierarchical level. The following are the three levels of inputs to measure fair value:

Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2: Inputs that reflect quoted prices for identical assets or liabilities in less active markets; quoted prices for similar assets or liabilities in active markets; benchmark yields, reported trades, broker/dealer quotes, inputs other than quoted prices that are observable for the assets or liabilities; or inputs that are derived principally from or corroborated by observable market data by correlation or other means.

Level 3: Unobservable inputs that reflect our own assumptions incorporated in valuation techniques used to measure fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available.

We consider an active market to be one in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis, and consider an inactive market to be one in which there are infrequent or few transactions for the asset or liability, the prices are not current, or price quotations vary substantially either over time or among market makers. Where appropriate, our own or the counterparty’s non-performance risk is considered in measuring the fair values of liabilities and assets, respectively.

Investments

The following is a summary of our investments at their cost or amortized cost as of October 25, 2024 and April 26, 2024 (in millions):

	October 25,  2024		April 26,   2024
U.S. Treasury and government debt securities	$	744	$	1,349
Money market funds		707		1,161
Certificates of deposit		14		12
Mutual funds		43		38
Total debt and equity securities	$	1,508	$	2,560

The fair value of our investments approximates their cost or amortized cost for both periods presented. Investments in mutual funds relate to the non-qualified deferred compensation plan offered to certain employees.

As of October 25, 2024, all our debt investments are due to mature in one year or less.

Fair Value of Financial Instruments

The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis (in millions):

	October 25, 2024
				Fair Value Measurements at Reporting Date Using
	Total			Level 1		Level 2
Cash and cash equivalents:
Cash	$	757		$	757	$	—
Money market funds		707			707		—
Certificates of deposit		14			—		14
Total cash and cash equivalents		1,478			1,464		14
Short-term investments:
U.S. Treasury and government debt securities		744			744		—
Total short-term investments		744			744		—
Total cash, cash equivalents and short-term investments	$	2,222		$	2,208	$	14
Other items:
Mutual funds (1)	$	7		$	7	$	—
Mutual funds (2)	$	36		$	36	$	—
Foreign currency exchange contracts assets (1)	$	—		$	—	$	—
Foreign currency exchange contracts liabilities (3)	$	(27	)	$	—	$	(27	)

	April 26, 2024
				Fair Value Measurements at Reporting Date Using
	Total			Level 1		Level 2
Cash and cash equivalents:
Cash	$	730		$	730	$	—
Money market funds		1,161			1,161		—
Certificates of deposit		12			—		12
Total cash and cash equivalents		1,903			1,891		12
Short-term investments:
U.S. Treasury and government debt securities		1,349			1,349		—
Total short-term investments		1,349			1,349		—
Total cash, cash equivalents and short-term investments	$	3,252		$	3,240	$	12
Other items:
Mutual funds (1)	$	6		$	6	$	—
Mutual funds (2)	$	32		$	32	$	—
Foreign currency exchange contracts assets (1)	$	1		$	—	$	1
Foreign currency exchange contracts liabilities (3)	$	(13	)	$	—	$	(13	)

(1)Reported as other current assets in the condensed consolidated balance sheets

(2)Reported as other non-current assets in the condensed consolidated balance sheets

(3)Reported as accrued expenses in the condensed consolidated balance sheets

Our Level 2 debt instruments are held by a custodian who prices some of the investments using standard inputs in various asset price models or obtains investment prices from third-party pricing providers that incorporate standard inputs in various asset price models. These pricing providers utilize the most recent observable market information in pricing these securities or, if specific prices are not available for these securities, use other observable inputs like market transactions involving identical or comparable securities. We review Level 2 inputs and fair value for reasonableness and the values may be further validated by comparison to multiple independent pricing sources. In addition, we review third-party pricing provider models, key inputs and assumptions and understand the pricing processes at our third-party providers in determining the overall reasonableness of the fair value of our Level 2 debt instruments. As of October 25, 2024 and April 26, 2024, we have not made any adjustments to the prices obtained from our third-party pricing providers.

Fair Value of Debt

As of October 25, 2024 and April 26, 2024, the fair value of our long-term debt, which includes the current portion of long-term debt, was approximately $1,881 million and $2,209 million, respectively. The fair value of our long-term debt was based on observable market prices in a less active market.

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Financing Arrangements

6 Months Ended

Oct. 25, 2024

Debt Disclosure [Abstract]

Financing Arrangements

6. 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	October 25,  2024			April 26,   2024
3.30% Senior Notes Due September 2024	3.42%	$	—		$	400
1.875% Senior Notes Due June 2025	2.03%		750			750
2.375% Senior Notes Due June 2027	2.51%		550			550
2.70% Senior Notes Due June 2030	2.81%		700			700
Total principal amount			2,000			2,400
Unamortized discount and issuance costs			(7	)		(8	)
Total senior notes			1,993			2,392
Less: Current portion of long-term debt			(749	)		(400	)
Total long-term debt		$	1,244		$	1,992

Senior Notes

On September 30, 2024, upon maturity, we repaid the 3.30% Senior Notes due September 2024 for an aggregate amount of $407 million, comprised of the principal and unpaid interest. Interest on our outstanding Senior Notes is payable semi-annually in June and December.

Our Senior Notes, which are unsecured, unsubordinated obligations, rank equally in right of payment with any existing and future senior unsecured indebtedness.

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 October 25, 2024, we were in compliance with all covenants associated with the Senior Notes.

As of October 25, 2024, our aggregate future principal debt maturities are as follows (in millions):

Fiscal Year	Amount
2025 (remainder)	$	—
2026		750
2027		—
2028		550
2029		—
Thereafter		700
Total	$	2,000

Commercial Paper Program and Credit Facility

We have a commercial paper program (the “Program”), under which we may issue unsecured commercial paper notes. Amounts available under the Program, as amended in July 2017, may be borrowed, repaid and re-borrowed, with the aggregate face or principal amount of the notes outstanding under the Program at any time not to exceed $1.0 billion. The maturities of the notes can vary, but may not exceed 397 days from the date of issue. The notes are sold under customary terms in the commercial paper market and may be issued at a discount from par or, alternatively, may be sold at par and bear interest at rates dictated by market conditions at the time of their issuance. The proceeds from the issuance of the notes are used for general corporate purposes. There were no commercial paper notes outstanding as of October 25, 2024 or April 26, 2024.

In connection with the Program, we have a senior unsecured credit agreement with a syndicated group of lenders. The credit agreement, which was amended in May 2023, provides for a $1.0 billion revolving unsecured credit facility, with a sublimit of $50 million available for the issuance of letters of credit on our behalf. The credit facility matures on January 22, 2026, with an option for us to extend the maturity date for two additional 1-year periods, subject to certain conditions. The proceeds of the loans may be used by us for general corporate purposes and as liquidity support for our existing commercial paper program. As of October 25, 2024, we were compliant with all associated covenants in the agreement. No amounts were drawn against this credit facility during any of the periods presented.

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Leases

6 Months Ended

Oct. 25, 2024

Leases [Abstract]

Leases

7. Leases

We lease real estate, equipment and automobiles in the U.S. and internationally. Our real estate leases, which are responsible for the majority of our aggregate ROU asset and liability balances, include leases for office space, data centers and other facilities, and as of October 25, 2024, have remaining lease terms not exceeding 18 years. Some of these leases contain options that allow us to extend or terminate the lease agreement. Our equipment leases are primarily for servers and networking equipment and as of October 25, 2024, have remaining lease terms not exceeding 4 years. As of October 25, 2024, our automobile leases have remaining lease terms not exceeding 4 years. All our leases are classified as operating leases except for certain immaterial equipment finance leases.

The components of lease cost related to our operating leases were as follows (in millions):

	Three Months Ended				Six Months Ended
	October 25,  2024		October 27, 2023		October 25,  2024		October 27, 2023
Operating lease cost	$	12	$	14	$	25	$	28
Variable lease cost		4		4		8		8
Total lease cost	$	16	$	18	$	33	$	36

Variable lease cost is primarily attributable to amounts paid to lessors for common area maintenance and utility charges under our real estate leases.

The supplemental cash flow information related to our operating leases is as follows (in millions):

	Six Months Ended
	October 25,  2024		October 27, 2023
Cash paid for amounts included in the measurement of operating lease liabilities	$	24	$	26
Right-of-use assets obtained in exchange for new operating lease obligations	$	6	$	13

The supplemental balance sheet information related to our operating leases is as follows (in millions, except lease term and discount rate):

	October 25,  2024			April 26,  2024
Other non-current assets	$	242		$	247
Total operating lease ROU assets	$	242		$	247
Accrued expenses	$	41		$	40
Other long-term liabilities		216			220
Total operating lease liabilities	$	257		$	260
Weighted Average Remaining Lease Term	8.7 years			9.2 years
Weighted Average Discount Rate		3.3	%		3.1	%

Future minimum operating lease payments as of October 25, 2024, are as follows (in millions):

Fiscal Year	Amount
2025 (remainder)	$	24
2026		45
2027		39
2028		32
2029		28
Thereafter		128
Total lease payments		296
Less: Interest		(39	)
Total	$	257

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Stockholders' Equity

6 Months Ended

Oct. 25, 2024

Share-Based Payment Arrangement [Abstract]

Stockholders' Equity

8. Stockholders’ Equity

Restricted Stock Units

We granted approximately 3 million restricted stock units (RSUs), including performance-based RSUs (PBRSUs), with a weighted average grant date fair value of $127.61 per share during the six months ended October 25, 2024.

In the six months ended October 25, 2024, we granted PBRSUs to certain of our executives. Each PBRSU has performance-based vesting criteria (in addition to the service-based vesting criteria) such that the PBRSUs cliff-vest at the end of a three year performance period, which began on the date specified in the grant agreements and typically ends on the last day of the third fiscal year, following the grant date. The number of shares that will be used to calculate the settlement amount for all of these PBRSUs at the end of the applicable performance and service period will range from 0% to 200% of a target number of shares originally granted. For half of the PBRSUs granted in the six months ended October 25, 2024, the number of shares used to calculate the settlement amount will depend upon our Total Stockholder Return (TSR) as compared to the TSR of a specified group of benchmark peer companies (each expressed as a growth rate percentage) calculated as of the end of the performance period. For the remaining half of the PBRSUs granted in the six months ended October 25, 2024, the number of shares used to calculate the settlement amount will depend upon the Company's billings result average over the three-year performance period. The billings result average is computed based on achievement against annual billings targets, with each target set at the beginning of the respective fiscal year, during the

three-year performance period. Billings for purposes of measuring the performance of these PBRSUs means the total obtained by adding net revenues as reported on the Company's Consolidated Statements of Income to the amount reported as the change in deferred revenue and financed unearned services revenue on the Consolidated Statements of Cash Flows for the applicable measurement period, excluding the impact of fluctuations in foreign currency exchange rates. The aggregate grant date fair value of PBRSUs granted in the current year was $62 million, which is being recognized to compensation expense over the remaining performance / service periods.

Stock-Based Compensation Expense

Stock-based compensation expense is included in the condensed consolidated statements of income as follows (in millions):

	Three Months Ended				Six Months Ended
	October 25,  2024		October 27, 2023		October 25,  2024		October 27, 2023
Cost of product revenues	$	2	$	1	$	3	$	2
Cost of services revenues		6		6		12		12
Sales and marketing		43		37		78		73
Research and development		37		35		68		67
General and administrative		15		14		27		26
Total stock-based compensation expense	$	103	$	93	$	188	$	180

As of October 25, 2024, total unrecognized compensation expense related to equity awards was $764 million, which is expected to be recognized on a straight-line basis over a weighted-average remaining service period of 2.2 years.

Stock Repurchase Program

In the first quarter of fiscal 2025, our Board of Directors authorized the repurchase of an additional $1.0 billion of our common stock. As of October 25, 2024, our Board of Directors has authorized cumulative repurchases of up to $17.1 billion of our common stock under our stock repurchase program. Under this program, we may purchase shares of our outstanding common stock through solicited or unsolicited transactions in the open market, in privately negotiated transactions, through accelerated share repurchase programs, pursuant to a Rule 10b5-1 plan or in such other manner as deemed appropriate by our management. The stock repurchase program may be suspended or discontinued at any time.

The following table summarizes activity related to the stock repurchase program for the six months ended October 25, 2024 (in millions, except for per share amounts):

Number of shares repurchased		5.8
Average price per share	$	121.58
Stock repurchases allocated to additional paid-in capital	$	28
Stock repurchases allocated to retained earnings	$	672
Remaining authorization at end of period	$	802

Since the May 13, 2003 inception of our stock repurchase program through October 25, 2024, we repurchased a total of 377 million shares of our common stock at an average price of $43.25 per share, for an aggregate purchase price of $16.3 billion.

Dividends

The following is a summary of our activities related to dividends on our common stock (in millions, except per share amounts):

	Six Months Ended
	October 25,  2024		October 27, 2023
Dividends per share declared	$	1.04	$	1.00
Dividend payments allocated to additional paid-in capital	$	130	$	171
Dividend payments allocated to retained earnings	$	83	$	38

On November 19, 2024, we declared a cash dividend of $0.52 per share of common stock, payable on January 22, 2025 to holders of record as of the close of business on January 3, 2025. The timing and amount of future dividends will depend on market conditions, corporate business and financial considerations and regulatory requirements. All dividends declared have been determined by us to be legally authorized under the laws of the state in which we are incorporated.

Accumulated Other Comprehensive Income (Loss)

Changes in accumulated other comprehensive income (loss) (AOCI) by component, net of tax, are summarized below (in millions):

	Foreign Currency Translation Adjustments			Defined Benefit Obligation Adjustments			Unrealized Gains (Losses) on Available- for-Sale Securities		Unrealized Gains (Losses) on Derivative Instruments			Total
Balance as of April 26, 2024	$	(53	)	$	(7	)	$	—	$	1		$	(59	)
Other comprehensive income (loss), net of tax		4			—			1		(3	)		2
Amounts reclassified from AOCI, net of tax		—			—			—		2			2
Total other comprehensive income (loss)		4			—			1		(1	)		4
Balance as of October 25, 2024	$	(49	)	$	(7	)	$	1	$	—		$	(55	)

The amounts reclassified out of AOCI are as follows (in millions):

	Three Months Ended					Six Months Ended
	October 25,  2024		October 27, 2023			October 25,  2024		October 27, 2023			Statements of Income Classification
Realized losses (gains) on cash flow hedges	$	2	$	(3	)	$	2	$	(4	)	Net revenues
Total reclassifications	$	2	$	(3	)	$	2	$	(4	)

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Derivatives and Hedging Activities

6 Months Ended

Oct. 25, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives and Hedging Activities

9. Derivatives and Hedging Activities

We use derivative instruments to manage exposures to foreign currency risk. Our primary objective in holding derivatives is to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates. The maximum length of time over which forecasted foreign currency denominated revenues are hedged is 12 months. The program is not designated for trading or speculative purposes. Our derivatives expose us to credit risk to the extent that the counterparties may be unable to meet their obligations under the terms of our agreements. We seek to mitigate such risk by limiting our counterparties to major financial institutions. In addition, the potential risk of loss with any one counterparty resulting from this type of credit risk is monitored on an ongoing basis. We also have in place master netting arrangements to mitigate the credit risk of our counterparties and to potentially reduce our losses due to counterparty nonperformance. We present our derivative instruments as net amounts in our condensed consolidated balance sheets. The gross and net fair value amounts of such instruments were not material as of October 25, 2024 or April 26, 2024. All contracts have a maturity of less than 12 months.

The notional amount of our outstanding U.S. dollar equivalent foreign currency exchange forward contracts consisted of the following (in millions):

	October 25,  2024		April 26,   2024
Cash Flow Hedges
Forward contracts purchased	$	128	$	71
Balance Sheet Contracts
Forward contracts sold	$	920	$	881
Forward contracts purchased	$	12	$	11

The gain (loss) of cash flow hedges recognized in net revenues is presented in the condensed consolidated statements of comprehensive income and Note 8 – Stockholders’ Equity.

The effect of derivative instruments not designated as hedging instruments recognized in other income, net on our condensed consolidated statements of income was as follows (in millions):

	Three Months Ended					Six Months Ended
	October 25,  2024		October 27, 2023			October 25,  2024		October 27, 2023
	Gain (Loss) Recognized into Income					Gain (Loss) Recognized into Income
Foreign currency exchange contracts	$	1	$	(45	)	$	14	$	(49	)

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Restructuring Charges

6 Months Ended

Oct. 25, 2024

Restructuring and Related Activities [Abstract]

Restructuring Charges

10. Restructuring Charges

In the first six months of fiscal 2025, management approved restructuring plans to redirect resources to the highest return activities and reduce costs. These plans collectively reduced our global workforce by approximately 2% for which restructuring charges, comprised of employee severance related expenses, were recorded during the first six months of fiscal 2025. The activities under these plans were initiated during the first six months of fiscal 2025 and are expected to be substantially complete by the end of fiscal 2025. Charges related to these plans consist primarily of employee severance-related costs.

In the first six months of fiscal 2024, management executed a restructuring plan to redirect resources to highest return activities, and to optimize our global office space for our hybrid work model. In connection with the plan, we reduced our global workforce by approximately 1% and terminated certain real estate leases in various countries, resulting in restructuring charges comprised primarily of employee severance related expenses and lease termination charges. The activities under the plan were substantially completed by the end of fiscal 2024.

Activities related to our restructuring plans are summarized as follows (in millions):

	Six Months Ended
	October 25,  2024			October 27, 2023
Balance at beginning of period	$	10		$	36
Net charges		29			31
Cash payments		(22	)		(46	)
Balance at end of period	$	17		$	21

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Income Taxes

6 Months Ended

Oct. 25, 2024

Income Tax Disclosure [Abstract]

Income Taxes

11. Income Taxes

Our effective tax rates for the periods presented were as follows:

	Six Months Ended
	October 25,  2024			October 27, 2023
Effective tax rates		17.0	%		23.8	%

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. Our effective tax rate for the six months ended October 25, 2024 includes an increase in discrete tax benefits related to stock compensation compared to the corresponding period of the prior year. Our effective tax rate for the six months ended October 27, 2023 included benefits for fiscal 2023 foreign tax credits resulting from legislative guidance for that period, partially offset by an increase in stock compensation for which no tax benefit is recorded.

The Organisation for Economic Co-operation and Development (“OECD”) recently enacted model rules for a new global minimum tax framework known as Pillar Two. These rules have been agreed to by most OECD members. The OECD has since issued administrative guidance providing transition and safe harbor rules around the implementation of Pillar Two rules. On February 1, 2023, the FASB indicated that they believe taxes imposed under Pillar Two is an alternative minimum tax. Accordingly, deferred tax assets and liabilities associated with the minimum tax would not be recognized or adjusted for the estimated future effects of the minimum tax but would be recognized in the period incurred. We are currently subject to Pillar Two rules starting in our fiscal year 2025. As of October 25, 2024, Pillar Two taxes do not have a significant impact on our financial statements, particularly due to the safe harbor relief during the transition period, but we are still closely monitoring developments.

Any OECD actions adopted internationally could impact our financial results in future periods.

We are currently undergoing various income tax audits in the U.S. and audits in several foreign tax jurisdictions. Transfer pricing calculations are key topics under these audits and are often subject to dispute and appeals.

We continue to monitor the progress of ongoing discussions with tax authorities and the impact, if any, of the expected expiration of the statute of limitations in various taxing jurisdictions. We engage in continuous discussion and negotiation with taxing authorities regarding tax matters in multiple jurisdictions. We believe that within the next 12 months, it is reasonably possible that either certain audits will conclude, certain statutes of limitations will lapse, or both. As a result of uncertainties regarding tax audits and their possible outcomes, an estimate of the range of possible impacts to unrecognized tax benefits in the next twelve months cannot be made at this time.

As of October 25, 2024, we had $223 million of gross unrecognized tax benefits. Inclusive of penalties, interest and certain income tax benefits, $162 million would affect our provision for income taxes if recognized. Net unrecognized tax benefits of $161 million have been recorded in other long-term liabilities.

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Net Income per Share

6 Months Ended

Oct. 25, 2024

Earnings Per Share [Abstract]

Net Income per Share

12. Net Income per Share

The following is a calculation of basic and diluted net income per share (in millions, except per share amounts):

	Three Months Ended				Six Months Ended
	October 25,  2024		October 27, 2023		October 25,  2024		October 27, 2023
Numerator:
Net income	$	299	$	233	$	547	$	382
Denominator:
Shares used in basic computation		204		208		205		210
Dilutive impact of employee equity award plans		6		3		6		4
Shares used in diluted computation		210		211		211		214
Net Income per Share:
Basic	$	1.47	$	1.12	$	2.67	$	1.82
Diluted	$	1.42	$	1.10	$	2.59	$	1.79

No potential shares from outstanding employee equity awards were excluded from the diluted net income per share calculation for the three and six months ended October 25, 2024, respectively, while three million and four million shares from outstanding employee equity awards were excluded from the diluted net income per share calculation for the three and six months ended October 27, 2023, respectively, as their inclusion would have been anti-dilutive.

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Segment, Geographic, and Significant Customer Information

6 Months Ended

Oct. 25, 2024

Segment Reporting [Abstract]

Segment, Geographic, and Significant Customer Information

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. 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 help customers modernize their data centers. This portfolio supports structured and unstructured data with unified storage optimized for flash, disk, and cloud storage to handle data-intensive workloads and applications. Hybrid Cloud is composed of software, hardware, and related support, as well as professional and other services.

Public Cloud offers a portfolio of products delivered primarily as-a-service, including related support. This portfolio includes cloud storage and CloudOps services. Public Cloud includes certain reseller arrangements in which the timing of our consideration follows the end user consumption of the reseller services.

Segment Revenues and Gross Profit

Financial information by segment is as follows (in millions, except percentages):

	Three Months Ended October 25, 2024
	Hybrid Cloud			Public Cloud			Consolidated
Product revenues	$	768		$	—		$	768
Support revenues		635			—			635
Professional and other services revenues		87			—			87
Public cloud revenues		—			168			168
Net revenues		1,490			168			1,658
Cost of product revenues		305			—			305
Cost of support revenues		51			—			51
Cost of professional and other services revenues		64			—			64
Cost of public cloud revenues		—			44			44
Segment cost of revenues		420			44			464
Segment gross profit	$	1,070		$	124		$	1,194
Segment gross margin		71.8	%		73.8	%		72.0	%
Unallocated cost of revenues1								17
Total gross profit							$	1,177
Total gross margin								71.0	%
1 Unallocated cost of revenues are composed of $8 million of stock-based compensation expense and $9 million of amortization of intangible assets.

	Three Months Ended October 27, 2023
	Hybrid Cloud			Public Cloud			Consolidated
Product revenues	$	706		$	—		$	706
Support revenues		623			—			623
Professional and other services revenues		79			—			79
Public cloud revenues		—			154			154
Net revenues		1,408			154			1,562
Cost of product revenues		275			—			275
Cost of support revenues		50			—			50
Cost of professional and other services revenues		60			—			60
Cost of public cloud revenues		—			52			52
Segment cost of revenues		385			52			437
Segment gross profit	$	1,023		$	102		$	1,125
Segment gross margin		72.7	%		66.2	%		72.0	%
Unallocated cost of revenues1								15
Total gross profit							$	1,110
Total gross margin								71.1	%
1 Unallocated cost of revenues are composed of $7 million of stock-based compensation expense and $8 million of amortization of intangible assets.

	Six Months Ended October 25, 2024
	Hybrid Cloud			Public Cloud			Consolidated
Product revenues	$	1,437		$	—		$	1,437
Support revenues		1,266			—			1,266
Professional and other services revenues		169			—			169
Public cloud revenues		—			327			327
Net revenues		2,872			327			3,199
Cost of product revenues		573			—			573
Cost of support revenues		101			—			101
Cost of professional and other services revenues		128			—			128
Cost of public cloud revenues		—			90			90
Segment cost of revenues		802			90			892
Segment gross profit	$	2,070		$	237		$	2,307
Segment gross margin		72.1	%		72.5	%		72.1	%
Unallocated cost of revenues1								32
Total gross profit							$	2,275
Total gross margin								71.1	%
1 Unallocated cost of revenues are composed of $15 million of stock-based compensation expense and $17 million of amortization of intangible assets.

	Six Months Ended October 27, 2023
	Hybrid Cloud			Public Cloud			Consolidated
Product revenues	$	1,296		$	—		$	1,296
Support revenues		1,234			—			1,234
Professional and other services revenues		156			—			156
Public cloud revenues		—			308			308
Net revenues		2,686			308			2,994
Cost of product revenues		539			—			539
Cost of support revenues		97			—			97
Cost of professional and other services revenues		118			—			118
Cost of public cloud revenues		—			103			103
Segment cost of revenues		754			103			857
Segment gross profit	$	1,932		$	205		$	2,137
Segment gross margin		71.9	%		66.6	%		71.4	%
Unallocated cost of revenues1								31
Total gross profit							$	2,106
Total gross margin								70.3	%
1 Unallocated cost of revenues are composed of $14 million of stock-based compensation expense and $17 million of amortization of intangible assets.

Geographical Revenues and Certain Assets

Revenues summarized by geographic region are as follows (in millions):

	Three Months Ended				Six Months Ended
	October 25,  2024		October 27, 2023		October 25,  2024		October 27, 2023
United States, Canada and Latin America (Americas)	$	862	$	789	$	1,625	$	1,543
Europe, Middle East and Africa (EMEA)		543		525		1,056		971
Asia Pacific (APAC)		253		248		518		480
Net revenues	$	1,658	$	1,562	$	3,199	$	2,994

Americas revenues consist of sales to Americas commercial and U.S. public sector markets. Sales to customers inside the U.S. were $807 million and $729 million during the three months ended October 25, 2024 and October 27, 2023, respectively, and were $1,506 million and $1,427 million during the six months ended October 25, 2024 and October 27, 2023, respectively.

The majority of our assets, excluding cash, cash equivalents, short-term investments and accounts receivable, were attributable to our domestic operations. The following table presents cash, cash equivalents and short-term investments held in the U.S. and internationally in various foreign subsidiaries (in millions):

	October 25,  2024		April 26,   2024
U.S.	$	311	$	1,142
International		1,911		2,110
Total	$	2,222	$	3,252

With the exception of property and equipment, we do not identify or allocate our long-lived assets by geographic area. The following table presents property and equipment information for geographic areas based on the physical location of the assets (in millions):

	October 25,  2024		April 26,   2024
U.S.	$	369	$	378
International		224		226
Total	$	593	$	604

Significant Customers

The following customers, each of which is a distributor, accounted for 10% or more of our net revenues:

	Three Months Ended						Six Months Ended
	October 25,  2024			October 27, 2023			October 25,  2024			October 27, 2023
Arrow Electronics, Inc.		21	%		22	%		22	%		23	%
TD Synnex Corporation		24	%		22	%		23	%		21	%

The following customers accounted for 10% or more of accounts receivable as of at least one of the dates presented:

	October 25,  2024			April 26,   2024
Arrow Electronics, Inc.		7	%		10	%
TD Synnex Corporation		26	%		26	%

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Commitments and Contingencies

6 Months Ended

Oct. 25, 2024

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

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 October 25, 2024, we had approximately $0.5 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 October 25, 2024 and April 26, 2024, such liability amounted to $17 million and $20 million, respectively, and is included in accrued expenses in our condensed 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 October 25, 2024, we had approximately $0.4 billion in other purchase obligations.

Financing Guarantees

While most of our arrangements for sales include short-term payment terms, from time to time we provide long-term financing to creditworthy customers. We have generally sold receivables financed through these arrangements on a non-recourse basis to third party financing institutions within 10 days of the contracts’ dates of execution, and we classify the proceeds from these sales as cash flows from operating activities in our condensed consolidated statements of cash flows. We account for the sales of these receivables as “true sales” as defined in the accounting standards on transfers of financial assets, as we are considered to have surrendered control of these financing receivables. Provided all other revenue recognition criteria have been met, we recognize product revenues for these arrangements, net of any payment discounts from financing transactions, upon product acceptance. We sold $26 million and $27 million of receivables during the six months ended October 25, 2024 and October 27, 2023, respectively.

In addition, we enter into arrangements with leasing companies for the sale of our hardware systems products. These leasing companies, in turn, lease our products to end-users. The leasing companies generally have no recourse to us in the event of default by the end-user and we recognize revenue upon delivery to the end-user customer, if all other revenue recognition criteria have been met.

Some of the leasing arrangements described above have been financed on a recourse basis through third-party financing institutions. Under the terms of recourse leases, which are generally three years or less, we remain liable for the aggregate unpaid remaining lease payments to the third-party leasing companies in the event of end-user customer default. These arrangements are generally collateralized by a security interest in the underlying assets. Where we provide a guarantee for recourse leases and collectability is probable, we account for these transactions as sales type leases. If collectability is not probable, the cash received is recorded as a deposit liability and revenue is deferred until the arrangement is deemed collectible. For leases that we are not a party to, other than providing recourse, we recognize revenue when control is transferred. As of October 25, 2024 and April 26, 2024, the aggregate amount by which such contingencies exceeded the associated liabilities was not significant. To date, we have not experienced significant losses under our lease financing programs or other financing arrangements.

We have entered into service contracts with certain of our end-user customers that are supported by third-party financing arrangements. If a service contract is terminated as a result of our non-performance under the contract or our failure to comply with the terms of the financing arrangement, we could, under certain circumstances, be required to acquire certain assets related to the service contract or to pay the aggregate unpaid financing payments under such arrangements. As of October 25, 2024, we have not been required to make any payments under these arrangements, and we believe the likelihood of having to acquire a material amount of assets or make material payments under these arrangements is remote. The portion of the financial arrangement that represents unearned services revenue is included in deferred revenue and financed unearned services revenue in our condensed consolidated balance sheets.

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 decisions by third parties that will determine the ultimate resolution of the contingency.

We are subject to various legal proceedings and claims that arise in the normal course of business. We may, from time to time, receive claims that we are infringing third parties’ intellectual property rights, including claims for alleged patent infringement brought by non-practicing entities. We are currently involved in patent litigation brought by non-practicing entities and other third parties. We believe we have strong arguments that our products do not infringe and/or the asserted patents are invalid, and we intend to vigorously defend against the plaintiffs’ claims. However, there is no guarantee that we will prevail at trial and if a jury were to find that our products infringe, we could be required to pay significant monetary damages, and may cause product shipment delays or stoppages, require us to redesign our products, or require us to enter into royalty or licensing agreements.

Although management at present believes that the ultimate outcome of these proceedings, individually and in the aggregate, will not materially harm our financial position, results of operations, cash flows, or overall trends, legal proceedings are subject to inherent uncertainties, and unfavorable rulings or other events could occur. Unfavorable resolutions could include significant monetary damages. In addition, in matters for which injunctive relief or other conduct remedies are sought, unfavorable resolutions could include an injunction or other order prohibiting us from selling one or more products at all or in particular ways or requiring other remedies. An unfavorable outcome may result in a material adverse impact on our business, results of operations, financial position, cash flows and overall trends. No material accrual has been recorded as of October 25, 2024 related to such matters.

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Description of Business and Significant Accounting Policies (Policies)

6 Months Ended

Oct. 25, 2024

Accounting Policies [Abstract]

Basis of Presentation and Preparation

Basis of Presentation and Preparation

Our fiscal year is reported on a 52- or 53-week year ending on the last Friday in April. An additional week is included in the first fiscal quarter approximately every six years to realign fiscal months with calendar months. Fiscal years 2025 and 2024, ending on April 25, 2025 and April 26, 2024, respectively, are each 52-week years, with 13 weeks in each quarter.

The accompanying unaudited condensed consolidated financial statements have been prepared by the Company, and reflect all adjustments, consisting only of normal recurring adjustments, that are, in the opinion of management, necessary for the fair presentation of our financial position, results of operations, comprehensive income, cash flows and stockholders’ equity for the interim periods presented. The statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information. Accordingly, these statements do not include all information and footnotes required by GAAP for annual consolidated financial statements, and should be read in conjunction with our audited consolidated financial statements as of and for the fiscal year ended April 26, 2024 contained in our Annual Report on Form 10-K. The results of operations for the three and six months ended October 25, 2024 are not necessarily indicative of the operating results to be expected for the full fiscal year or future operating periods.

The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Such estimates include, but are not limited to, revenue recognition, reserves and allowances; inventory valuation; valuation of goodwill and intangibles; restructuring reserves; employee benefit accruals; stock-based compensation; loss contingencies; investment impairments; income taxes and fair value measurements. Actual results could differ materially from those estimates, the anticipated effects of which have been incorporated, as applicable, into management's estimates as of October 25, 2024.

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Goodwill and Purchased Intangible Assets, Net (Tables)

6 Months Ended

Oct. 25, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of goodwill by reportable segment

Goodwill by reportable segment as of October 25, 2024 is as follows (in millions):

	Amount
Hybrid Cloud	$	1,714
Public Cloud		1,045
Total goodwill	$	2,759

Purchased Intangible Assets, Net

Purchased intangible assets, net are summarized below (in millions):

	October 25,  2024							April 26,   2024
	Gross		Accumulated			Net		Gross		Accumulated			Net
	Assets		Amortization			Assets		Assets		Amortization			Assets
Developed technology	$	163	$	(109	)	$	54	$	179	$	(108	)	$	71
Customer contracts/relationships		108		(67	)		41		114		(62	)		52
Other purchased intangibles		3		(2	)		1		6		(5	)		1
Total purchased intangible assets	$	274	$	(178	)	$	96	$	299	$	(175	)	$	124

Amortization Expense for Purchased Intangible Assets

Amortization expense for purchased intangible assets is summarized below (in millions):

	Three Months Ended				Six Months Ended				Statements of
	October 25,  2024		October 27, 2023		October 25,  2024		October 27, 2023		Income Classification
Developed technology	$	9	$	8	$	17	$	17	Cost of revenues
Customer contracts/relationships		5		6		11		11	Operating expenses
Other purchased intangibles		—		—		—		1	Operating expenses
Total	$	14	$	14	$	28	$	29

Future Amortization Expense Related to Purchased Intangible Assets

As of October 25, 2024, future amortization expense related to purchased intangible assets is as follows (in millions):

Fiscal Year	Amount
2025 (remainder)	$	27
2026		39
2027		29
2028		1
Total	$	96

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Supplemental Financial Information (Tables)

6 Months Ended

Oct. 25, 2024

Supplemental Financial Information [Abstract]

Cash, Cash Equivalents and Restricted Cash

The following table presents cash and cash equivalents as reported in our condensed consolidated balance sheets, as well as the sum of cash, cash equivalents and restricted cash as reported on our condensed consolidated statements of cash flows:

	October 25,  2024		April 26,   2024
Cash and cash equivalents	$	1,478	$	1,903
Restricted cash		9		6
Cash, cash equivalents and restricted cash	$	1,487	$	1,909

Inventories

Inventories (in millions):

	October 25,  2024		April 26,   2024
Purchased components	$	229	$	116
Finished goods		88		70
Inventories	$	317	$	186

Property and Equipment, Net

Property and equipment, net (in millions):

	October 25,  2024			April 26,   2024
Land	$	46		$	46
Buildings and improvements		371			367
Leasehold improvements		86			81
Computer, production, engineering and other equipment		1,141			1,101
Computer software		349			340
Furniture and fixtures		67			77
Construction-in-progress		68			70
		2,128			2,082
Accumulated depreciation and amortization		(1,535	)		(1,478	)
Property and equipment, net	$	593		$	604

Other Non-Current Assets

Other non-current assets (in millions):

	October 25,  2024		April 26,   2024
Deferred tax assets	$	966	$	896
Operating lease right-of-use (ROU) assets		242		247
Other assets		409		360
Other non-current assets	$	1,617	$	1,503

Accrued Expenses

Accrued expenses (in millions):

	October 25,  2024		April 26,   2024
Accrued compensation and benefits	$	423	$	538
Product warranty liabilities		18		18
Operating lease liabilities		41		40
Other current liabilities		487		417
Accrued expenses	$	969	$	1,013

Other Long-term Liabilities

Other long-term liabilities (in millions):

	October 25,  2024		April 26,   2024
Liability for uncertain tax positions	$	161	$	153
Income taxes payable		—		100
Product warranty liabilities		9		9
Operating lease liabilities		216		220
Other liabilities		110		103
Other long-term liabilities	$	496	$	585

Deferred Revenue and Financed Unearned Services Revenue

The following table summarizes the components of our deferred revenue and financed unearned services revenue balance as reported in our condensed consolidated balance sheets (in millions):

	October 25,  2024		April 26,   2024
Deferred product revenue	$	57	$	59
Deferred services revenue		4,001		4,123
Financed unearned services revenue		42		52
Total	$	4,100	$	4,234
Reported as:
Short-term	$	2,045	$	2,176
Long-term		2,055		2,058
Total	$	4,100	$	4,234

Summary of Activity Related to Deferred Commissions and their Balances in Condensed Consolidated Balance Sheet

The following table summarizes deferred commissions balances as reported in our condensed consolidated balance sheets (in millions):

	October 25,  2024		April 26,   2024
Other current assets	$	67	$	69
Other non-current assets		102		100
Total deferred commissions	$	169	$	169

Other income, net

Other income, net (in millions):

	Three Months Ended						Six Months Ended
	October 25,  2024			October 27, 2023			October 25,  2024			October 27, 2023
Interest income	$	27		$	25		$	63		$	53
Interest expense		(15	)		(15	)		(31	)		(31	)
Other, net		3			1			—			(3	)
Total other income, net	$	15		$	11		$	32		$	19

Statements of Cash Flows Additional Information

Supplemental cash flow information related to our operating leases is included in Note 7 ─ Leases. Non-cash investing activities and other supplemental cash flow information are presented below:

	Six Months Ended
	October 25,  2024		October 27, 2023
Non-cash Investing Activities:
Capital expenditures incurred but not paid	$	16	$	18
Supplemental Cash Flow Information:
Income taxes paid, net of refunds	$	222	$	222
Interest paid	$	30	$	30

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Financial Instruments and Fair Value Measurements (Tables)

6 Months Ended

Oct. 25, 2024

Investments, Debt and Equity Securities [Abstract]

Summary of Investments at Cost or Amortized Cost

The following is a summary of our investments at their cost or amortized cost as of October 25, 2024 and April 26, 2024 (in millions):

	October 25,  2024		April 26,   2024
U.S. Treasury and government debt securities	$	744	$	1,349
Money market funds		707		1,161
Certificates of deposit		14		12
Mutual funds		43		38
Total debt and equity securities	$	1,508	$	2,560

Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis (in millions):

	October 25, 2024
				Fair Value Measurements at Reporting Date Using
	Total			Level 1		Level 2
Cash and cash equivalents:
Cash	$	757		$	757	$	—
Money market funds		707			707		—
Certificates of deposit		14			—		14
Total cash and cash equivalents		1,478			1,464		14
Short-term investments:
U.S. Treasury and government debt securities		744			744		—
Total short-term investments		744			744		—
Total cash, cash equivalents and short-term investments	$	2,222		$	2,208	$	14
Other items:
Mutual funds (1)	$	7		$	7	$	—
Mutual funds (2)	$	36		$	36	$	—
Foreign currency exchange contracts assets (1)	$	—		$	—	$	—
Foreign currency exchange contracts liabilities (3)	$	(27	)	$	—	$	(27	)

	April 26, 2024
				Fair Value Measurements at Reporting Date Using
	Total			Level 1		Level 2
Cash and cash equivalents:
Cash	$	730		$	730	$	—
Money market funds		1,161			1,161		—
Certificates of deposit		12			—		12
Total cash and cash equivalents		1,903			1,891		12
Short-term investments:
U.S. Treasury and government debt securities		1,349			1,349		—
Total short-term investments		1,349			1,349		—
Total cash, cash equivalents and short-term investments	$	3,252		$	3,240	$	12
Other items:
Mutual funds (1)	$	6		$	6	$	—
Mutual funds (2)	$	32		$	32	$	—
Foreign currency exchange contracts assets (1)	$	1		$	—	$	1
Foreign currency exchange contracts liabilities (3)	$	(13	)	$	—	$	(13	)

(1)Reported as other current assets in the condensed consolidated balance sheets

(2)Reported as other non-current assets in the condensed consolidated balance sheets

(3)Reported as accrued expenses in the condensed consolidated balance sheets

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Financing Arrangements (Tables)

6 Months Ended

Oct. 25, 2024

Debt Disclosure [Abstract]

Carrying Value of 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	October 25,  2024			April 26,   2024
3.30% Senior Notes Due September 2024	3.42%	$	—		$	400
1.875% Senior Notes Due June 2025	2.03%		750			750
2.375% Senior Notes Due June 2027	2.51%		550			550
2.70% Senior Notes Due June 2030	2.81%		700			700
Total principal amount			2,000			2,400
Unamortized discount and issuance costs			(7	)		(8	)
Total senior notes			1,993			2,392
Less: Current portion of long-term debt			(749	)		(400	)
Total long-term debt		$	1,244		$	1,992

Future Principal Debt Maturities

As of October 25, 2024, our aggregate future principal debt maturities are as follows (in millions):

Fiscal Year	Amount
2025 (remainder)	$	—
2026		750
2027		—
2028		550
2029		—
Thereafter		700
Total	$	2,000

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Leases (Tables)

6 Months Ended

Oct. 25, 2024

Leases [Abstract]

Components of Lease Cost Related to Operating Leases

The components of lease cost related to our operating leases were as follows (in millions):

	Three Months Ended				Six Months Ended
	October 25,  2024		October 27, 2023		October 25,  2024		October 27, 2023
Operating lease cost	$	12	$	14	$	25	$	28
Variable lease cost		4		4		8		8
Total lease cost	$	16	$	18	$	33	$	36

Supplemental Cash Flow Information Related to Operating Leases

The supplemental cash flow information related to our operating leases is as follows (in millions):

	Six Months Ended
	October 25,  2024		October 27, 2023
Cash paid for amounts included in the measurement of operating lease liabilities	$	24	$	26
Right-of-use assets obtained in exchange for new operating lease obligations	$	6	$	13

Supplemental Balance Sheet Information Related to Operating Leases

The supplemental balance sheet information related to our operating leases is as follows (in millions, except lease term and discount rate):

	October 25,  2024			April 26,  2024
Other non-current assets	$	242		$	247
Total operating lease ROU assets	$	242		$	247
Accrued expenses	$	41		$	40
Other long-term liabilities		216			220
Total operating lease liabilities	$	257		$	260
Weighted Average Remaining Lease Term	8.7 years			9.2 years
Weighted Average Discount Rate		3.3	%		3.1	%

Future Minimum Operating Lease Payments

Future minimum operating lease payments as of October 25, 2024, are as follows (in millions):

Fiscal Year	Amount
2025 (remainder)	$	24
2026		45
2027		39
2028		32
2029		28
Thereafter		128
Total lease payments		296
Less: Interest		(39	)
Total	$	257

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Stockholders' Equity (Tables)

6 Months Ended

Oct. 25, 2024

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation Expense

Stock-based compensation expense is included in the condensed consolidated statements of income as follows (in millions):

	Three Months Ended				Six Months Ended
	October 25,  2024		October 27, 2023		October 25,  2024		October 27, 2023
Cost of product revenues	$	2	$	1	$	3	$	2
Cost of services revenues		6		6		12		12
Sales and marketing		43		37		78		73
Research and development		37		35		68		67
General and administrative		15		14		27		26
Total stock-based compensation expense	$	103	$	93	$	188	$	180

Summary of Activities Related to Stock Repurchase Program

The following table summarizes activity related to the stock repurchase program for the six months ended October 25, 2024 (in millions, except for per share amounts):

Number of shares repurchased		5.8
Average price per share	$	121.58
Stock repurchases allocated to additional paid-in capital	$	28
Stock repurchases allocated to retained earnings	$	672
Remaining authorization at end of period	$	802

Summary of Activities Related to Dividends on Common Stock

The following is a summary of our activities related to dividends on our common stock (in millions, except per share amounts):

	Six Months Ended
	October 25,  2024		October 27, 2023
Dividends per share declared	$	1.04	$	1.00
Dividend payments allocated to additional paid-in capital	$	130	$	171
Dividend payments allocated to retained earnings	$	83	$	38

Accumulated Other Comprehensive Income (Loss) by Component Net of Tax

Changes in accumulated other comprehensive income (loss) (AOCI) by component, net of tax, are summarized below (in millions):

	Foreign Currency Translation Adjustments			Defined Benefit Obligation Adjustments			Unrealized Gains (Losses) on Available- for-Sale Securities		Unrealized Gains (Losses) on Derivative Instruments			Total
Balance as of April 26, 2024	$	(53	)	$	(7	)	$	—	$	1		$	(59	)
Other comprehensive income (loss), net of tax		4			—			1		(3	)		2
Amounts reclassified from AOCI, net of tax		—			—			—		2			2
Total other comprehensive income (loss)		4			—			1		(1	)		4
Balance as of October 25, 2024	$	(49	)	$	(7	)	$	1	$	—		$	(55	)

Amounts Reclassified Out of Accumulated Other Comprehensive Income (Loss)

The amounts reclassified out of AOCI are as follows (in millions):

	Three Months Ended					Six Months Ended
	October 25,  2024		October 27, 2023			October 25,  2024		October 27, 2023			Statements of Income Classification
Realized losses (gains) on cash flow hedges	$	2	$	(3	)	$	2	$	(4	)	Net revenues
Total reclassifications	$	2	$	(3	)	$	2	$	(4	)

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Derivatives and Hedging Activities (Tables)

6 Months Ended

Oct. 25, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Notional Value of Outstanding Foreign Currency Exchange Forward Contracts

The notional amount of our outstanding U.S. dollar equivalent foreign currency exchange forward contracts consisted of the following (in millions):

	October 25,  2024		April 26,   2024
Cash Flow Hedges
Forward contracts purchased	$	128	$	71
Balance Sheet Contracts
Forward contracts sold	$	920	$	881
Forward contracts purchased	$	12	$	11

Schedule of Derivative Instruments Not Designated as Hedging Instruments

The effect of derivative instruments not designated as hedging instruments recognized in other income, net on our condensed consolidated statements of income was as follows (in millions):

	Three Months Ended					Six Months Ended
	October 25,  2024		October 27, 2023			October 25,  2024		October 27, 2023
	Gain (Loss) Recognized into Income					Gain (Loss) Recognized into Income
Foreign currency exchange contracts	$	1	$	(45	)	$	14	$	(49	)

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Restructuring Charges (Tables)

6 Months Ended

Oct. 25, 2024

Restructuring and Related Activities [Abstract]

Activities Related to Restructuring Reserves

Activities related to our restructuring plans are summarized as follows (in millions):

	Six Months Ended
	October 25,  2024			October 27, 2023
Balance at beginning of period	$	10		$	36
Net charges		29			31
Cash payments		(22	)		(46	)
Balance at end of period	$	17		$	21

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Income Taxes (Tables)

6 Months Ended

Oct. 25, 2024

Income Tax Disclosure [Abstract]

Effective Tax Rates

Our effective tax rates for the periods presented were as follows:

	Six Months Ended
	October 25,  2024			October 27, 2023
Effective tax rates		17.0	%		23.8	%

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Net Income per Share (Tables)

6 Months Ended

Oct. 25, 2024

Earnings Per Share [Abstract]

Computation of Basic and Diluted Net Income Per Share

The following is a calculation of basic and diluted net income per share (in millions, except per share amounts):

	Three Months Ended				Six Months Ended
	October 25,  2024		October 27, 2023		October 25,  2024		October 27, 2023
Numerator:
Net income	$	299	$	233	$	547	$	382
Denominator:
Shares used in basic computation		204		208		205		210
Dilutive impact of employee equity award plans		6		3		6		4
Shares used in diluted computation		210		211		211		214
Net Income per Share:
Basic	$	1.47	$	1.12	$	2.67	$	1.82
Diluted	$	1.42	$	1.10	$	2.59	$	1.79

No potential shares

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Segment, Geographic, and Significant Customer Information (Tables)

6 Months Ended

Oct. 25, 2024

Segment Reporting [Abstract]

Schedule of Financial Information by Segment

Financial information by segment is as follows (in millions, except percentages):

	Three Months Ended October 25, 2024
	Hybrid Cloud			Public Cloud			Consolidated
Product revenues	$	768		$	—		$	768
Support revenues		635			—			635
Professional and other services revenues		87			—			87
Public cloud revenues		—			168			168
Net revenues		1,490			168			1,658
Cost of product revenues		305			—			305
Cost of support revenues		51			—			51
Cost of professional and other services revenues		64			—			64
Cost of public cloud revenues		—			44			44
Segment cost of revenues		420			44			464
Segment gross profit	$	1,070		$	124		$	1,194
Segment gross margin		71.8	%		73.8	%		72.0	%
Unallocated cost of revenues1								17
Total gross profit							$	1,177
Total gross margin								71.0	%
1 Unallocated cost of revenues are composed of $8 million of stock-based compensation expense and $9 million of amortization of intangible assets.

	Three Months Ended October 27, 2023
	Hybrid Cloud			Public Cloud			Consolidated
Product revenues	$	706		$	—		$	706
Support revenues		623			—			623
Professional and other services revenues		79			—			79
Public cloud revenues		—			154			154
Net revenues		1,408			154			1,562
Cost of product revenues		275			—			275
Cost of support revenues		50			—			50
Cost of professional and other services revenues		60			—			60
Cost of public cloud revenues		—			52			52
Segment cost of revenues		385			52			437
Segment gross profit	$	1,023		$	102		$	1,125
Segment gross margin		72.7	%		66.2	%		72.0	%
Unallocated cost of revenues1								15
Total gross profit							$	1,110
Total gross margin								71.1	%
1 Unallocated cost of revenues are composed of $7 million of stock-based compensation expense and $8 million of amortization of intangible assets.

	Six Months Ended October 25, 2024
	Hybrid Cloud			Public Cloud			Consolidated
Product revenues	$	1,437		$	—		$	1,437
Support revenues		1,266			—			1,266
Professional and other services revenues		169			—			169
Public cloud revenues		—			327			327
Net revenues		2,872			327			3,199
Cost of product revenues		573			—			573
Cost of support revenues		101			—			101
Cost of professional and other services revenues		128			—			128
Cost of public cloud revenues		—			90			90
Segment cost of revenues		802			90			892
Segment gross profit	$	2,070		$	237		$	2,307
Segment gross margin		72.1	%		72.5	%		72.1	%
Unallocated cost of revenues1								32
Total gross profit							$	2,275
Total gross margin								71.1	%
1 Unallocated cost of revenues are composed of $15 million of stock-based compensation expense and $17 million of amortization of intangible assets.

	Six Months Ended October 27, 2023
	Hybrid Cloud			Public Cloud			Consolidated
Product revenues	$	1,296		$	—		$	1,296
Support revenues		1,234			—			1,234
Professional and other services revenues		156			—			156
Public cloud revenues		—			308			308
Net revenues		2,686			308			2,994
Cost of product revenues		539			—			539
Cost of support revenues		97			—			97
Cost of professional and other services revenues		118			—			118
Cost of public cloud revenues		—			103			103
Segment cost of revenues		754			103			857
Segment gross profit	$	1,932		$	205		$	2,137
Segment gross margin		71.9	%		66.6	%		71.4	%
Unallocated cost of revenues1								31
Total gross profit							$	2,106
Total gross margin								70.3	%
1 Unallocated cost of revenues are composed of $14 million of stock-based compensation expense and $17 million of amortization of intangible assets.

Schedule of Revenues by Geographic Region

Revenues summarized by geographic region are as follows (in millions):

	Three Months Ended				Six Months Ended
	October 25,  2024		October 27, 2023		October 25,  2024		October 27, 2023
United States, Canada and Latin America (Americas)	$	862	$	789	$	1,625	$	1,543
Europe, Middle East and Africa (EMEA)		543		525		1,056		971
Asia Pacific (APAC)		253		248		518		480
Net revenues	$	1,658	$	1,562	$	3,199	$	2,994

Schedule of Cash, Cash Equivalents and Short-Term Investments

The following table presents cash, cash equivalents and short-term investments held in the U.S. and internationally in various foreign subsidiaries (in millions):

	October 25,  2024		April 26,   2024
U.S.	$	311	$	1,142
International		1,911		2,110
Total	$	2,222	$	3,252

Schedule of Property and Equipment, Net by Geographic Areas

The following table presents property and equipment information for geographic areas based on the physical location of the assets (in millions):

	October 25,  2024		April 26,   2024
U.S.	$	369	$	378
International		224		226
Total	$	593	$	604

Schedule of Revenues from Significant Customers

The following customers, each of which is a distributor, accounted for 10% or more of our net revenues:

	Three Months Ended						Six Months Ended
	October 25,  2024			October 27, 2023			October 25,  2024			October 27, 2023
Arrow Electronics, Inc.		21	%		22	%		22	%		23	%
TD Synnex Corporation		24	%		22	%		23	%		21	%

Schedule of Net Accounts Receivable from Significant Customers

The following customers accounted for 10% or more of accounts receivable as of at least one of the dates presented:

	October 25,  2024			April 26,   2024
Arrow Electronics, Inc.		7	%		10	%
TD Synnex Corporation		26	%		26	%

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Goodwill and Purchased Intangible Assets, Net - Additional Information (Detail) $ in Millions	6 Months Ended
	Oct. 25, 2024 USD ($)
Finite-Lived Intangible Assets [Line Items]
Retirement of amortized assets	$ 25

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Goodwill and Purchased Intangible Assets, Net - Summary of Goodwill by Reportable Segment (Detail) - USD ($) $ in Millions	Oct. 25, 2024	Apr. 26, 2024
Goodwill [Line Items]
Total goodwill	$ 2,759	$ 2,759
Hybrid Cloud
Goodwill [Line Items]
Total goodwill	1,714
Public Cloud
Goodwill [Line Items]
Total goodwill	$ 1,045

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Goodwill and Purchased Intangible Assets, Net - Purchased Intangible Assets, Net (Detail) - USD ($) $ in Millions	Oct. 25, 2024	Apr. 26, 2024
Acquired Finite Lived Intangible Assets [Line Items]
Gross Assets	$ 274	$ 299
Accumulated Amortization	(178)	(175)
Net Assets	96	124
Developed Technology
Acquired Finite Lived Intangible Assets [Line Items]
Gross Assets	163	179
Accumulated Amortization	(109)	(108)
Net Assets	54	71
Customer Contracts/Relationships
Acquired Finite Lived Intangible Assets [Line Items]
Gross Assets	108	114
Accumulated Amortization	(67)	(62)
Net Assets	41	52
Other Purchased Intangibles
Acquired Finite Lived Intangible Assets [Line Items]
Gross Assets	3	6
Accumulated Amortization	(2)	(5)
Net Assets	$ 1	$ 1

XML

Goodwill and Purchased Intangible Assets, Net - Amortization Expense for Purchased Intangible Assets (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Oct. 25, 2024	Oct. 27, 2023	Oct. 25, 2024	Oct. 27, 2023
Acquired Finite Lived Intangible Assets [Line Items]
Amortization expense	$ 14	$ 14	$ 28	$ 29
Cost of revenues | Developed Technology
Acquired Finite Lived Intangible Assets [Line Items]
Amortization expense	9	8	17	17
Operating expenses | Customer Contracts/Relationships
Acquired Finite Lived Intangible Assets [Line Items]
Amortization expense	5	6	11	11
Operating expenses | Other Purchased Intangibles
Acquired Finite Lived Intangible Assets [Line Items]
Amortization expense	$ 0	$ 0	$ 0	$ 1

XML

Goodwill and Purchased Intangible Assets, Net - Future Amortization Expense Related to Purchased Intangible Assets (Detail) - USD ($) $ in Millions	Oct. 25, 2024	Apr. 26, 2024
Acquired Finite Lived Intangible Assets [Line Items]
2025 (remainder)	$ 27
2026	39
2027	29
2028	1
Net Assets	$ 96	$ 124

XML

Supplemental Financial Information - Cash, Cash Equivalents and Restricted Cash (Detail) - USD ($) $ in Millions	Oct. 25, 2024	Apr. 26, 2024	Oct. 27, 2023	Apr. 28, 2023
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents [Abstract]
Cash and cash equivalents	$ 1,478	$ 1,903
Restricted cash	9	6
Cash, cash equivalents and restricted cash	$ 1,487	$ 1,909	$ 1,941	$ 2,322

XML

Supplemental Financial Information - Inventories (Detail) - USD ($) $ in Millions	Oct. 25, 2024	Apr. 26, 2024
Inventory Disclosure [Abstract]
Purchased components	$ 229	$ 116
Finished goods	88	70
Inventories	$ 317	$ 186

XML

Supplemental Financial Information - Property and Equipment Net (Detail) - USD ($) $ in Millions	Oct. 25, 2024	Apr. 26, 2024
Property Plant And Equipment [Line Items]
Property and equipment, gross	$ 2,128	$ 2,082
Accumulated depreciation and amortization	(1,535)	(1,478)
Property and equipment, net	593	604
Land
Property Plant And Equipment [Line Items]
Property and equipment, gross	46	46
Buildings and improvements
Property Plant And Equipment [Line Items]
Property and equipment, gross	371	367
Leasehold Improvements
Property Plant And Equipment [Line Items]
Property and equipment, gross	86	81
Computer, production, engineering and other equipment
Property Plant And Equipment [Line Items]
Property and equipment, gross	1,141	1,101
Computer software
Property Plant And Equipment [Line Items]
Property and equipment, gross	349	340
Furniture and fixtures
Property Plant And Equipment [Line Items]
Property and equipment, gross	67	77
Construction-in-progress
Property Plant And Equipment [Line Items]
Property and equipment, gross	$ 68	$ 70

XML

Supplemental Financial Information - Other Non-Current Assets (Detail) - USD ($) $ in Millions	Oct. 25, 2024	Apr. 26, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Deferred tax assets	$ 966	$ 896
Operating lease ROU assets	242	247
Other assets	409	360
Other non-current assets	$ 1,617	$ 1,503

XML

Supplemental Financial Information - Additional Information (Detail) - USD ($) $ in Millions	6 Months Ended
	Oct. 25, 2024	Oct. 27, 2023	Apr. 26, 2024
Property Plant And Equipment [Line Items]
Revenue recognized	$ 1,264	$ 1,258
Lenovo NetApp Technology Limited (“LNTL”)
Property Plant And Equipment [Line Items]
Non-controlling equity interest, ownership percentage	49.00%		49.00%
Other non current assets	$ 87		$ 85

XML

Supplemental Financial Information - Accrued expenses (Detail) - USD ($) $ in Millions	Oct. 25, 2024	Apr. 26, 2024
Payables and Accruals [Abstract]
Accrued compensation and benefits	$ 423	$ 538
Product warranty liabilities	18	18
Operating lease liabilities	41	40
Other current liabilities	487	417
Accrued expenses	$ 969	$ 1,013

XML

Supplemental Financial Information - Other Long-term Liabilities (Detail) - USD ($) $ in Millions	Oct. 25, 2024	Apr. 26, 2024
Liabilities, Other than Long-Term Debt, Noncurrent [Abstract]
Liability for uncertain tax positions	$ 161	$ 153
Income taxes payable	0	100
Product warranty liabilities	9	9
Operating lease liabilities	216	220
Other liabilities	110	103
Other long-term liabilities	$ 496	$ 585

XML

Supplemental Financial Information - Summary of Components of Deferred Revenue and Financed Unearned Services Revenue (Detail) - USD ($) $ in Millions	Oct. 25, 2024	Apr. 26, 2024
Contract With Customer Liability [Line Items]
Total	$ 4,100	$ 4,234
Short-term	2,045	2,176
Long-term	2,055	2,058
Deferred product revenue
Contract With Customer Liability [Line Items]
Total	57	59
Deferred services revenue
Contract With Customer Liability [Line Items]
Total	4,001	4,123
Financed unearned services revenue
Contract With Customer Liability [Line Items]
Total	$ 42	$ 52

XML

Supplemental Financial Information (Additional Information) (Details 1) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-10-25 $ in Billions	Oct. 25, 2024 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue expected to be recognized	49.00%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	12 months
Performance obligations related to customer contracts	$ 4.4

XML

Supplemental Financial Information - Summary of Activity Related to the Balances in Condensed Consolidated Balance Sheets (Detail) - USD ($) $ in Millions	Oct. 25, 2024	Apr. 26, 2024
Deferred Revenue Disclosure [Abstract]
Other current assets	$ 67	$ 69
Other non-current assets	102	100
Total deferred commissions	$ 169	$ 169

XML

Supplemental Financial Information - Other Income (expense), Net (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Oct. 25, 2024	Oct. 27, 2023	Oct. 25, 2024	Oct. 27, 2023
Nonoperating Income (Expense) [Abstract]
Interest income	$ 27	$ 25	$ 63	$ 53
Interest expense	(15)	(15)	(31)	(31)
Other, net	3	1	0	(3)
Total other income, net	$ 15	$ 11	$ 32	$ 19

XML

Supplemental Financial Information - Supplemental Cash Flows, Non-Cash Investing Activities (Detail) - USD ($) $ in Millions	6 Months Ended
	Oct. 25, 2024	Oct. 27, 2023
Non-cash Investing Activities:
Capital expenditures incurred but not paid	$ 16	$ 18
Supplemental Cash Flow Information:
Income taxes paid, net of refunds	222	222
Interest paid	$ 30	$ 30

XML

Financial Instruments and Fair Value Measurements - Summary of Investments at Cost or Amortized Cost (Detail) - USD ($) $ in Millions	Oct. 25, 2024	Apr. 26, 2024
Schedule of Available-for-sale Securities [Line Items]
Cost or amortized cost	$ 1,508	$ 2,560
U.S. Treasury and Government Debt Securities
Schedule of Available-for-sale Securities [Line Items]
Cost or amortized cost	744	1,349
Money Market Funds
Schedule of Available-for-sale Securities [Line Items]
Cost or amortized cost	707	1,161
Certificates of Deposit
Schedule of Available-for-sale Securities [Line Items]
Cost or amortized cost	14	12
Mutual Funds
Schedule of Available-for-sale Securities [Line Items]
Cost or amortized cost	$ 43	$ 38

XML

Financial Instruments and Fair Value Measurements - Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions		Oct. 25, 2024	Apr. 26, 2024
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets		$ 2,222	$ 3,252
Cash and Cash Equivalents
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets		1,478	1,903
Short Term Investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets		744	1,349
Other Current Assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreign currency exchange contracts assets	[1]	0	1
Accrued Expenses
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreign currency exchange contracts liabilities	[2]	(27)	(13)
U.S. Treasury and Government Debt Securities | Cash and Cash Equivalents
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets		744
U.S. Treasury and Government Debt Securities | Short Term Investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets			1,349
Certificates of Deposit | Cash and Cash Equivalents
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets		14	12
Mutual Funds | Other Current Assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	[1]	7	6
Mutual Funds | Other Noncurrent Assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	[3]	36	32
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets		2,208	3,240
Fair Value, Inputs, Level 1 [Member] | Cash and Cash Equivalents
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets		1,464	1,891
Fair Value, Inputs, Level 1 [Member] | Short Term Investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets		744	1,349
Fair Value, Inputs, Level 1 [Member] | Other Current Assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreign currency exchange contracts assets	[1]	0	0
Fair Value, Inputs, Level 1 [Member] | Accrued Expenses
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreign currency exchange contracts liabilities	[2]	0	0
Fair Value, Inputs, Level 1 [Member] | U.S. Treasury and Government Debt Securities | Short Term Investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets		744	1,349
Fair Value, Inputs, Level 1 [Member] | Certificates of Deposit | Cash and Cash Equivalents
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets		0	0
Fair Value, Inputs, Level 1 [Member] | Mutual Funds | Other Current Assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	[1]	7	6
Fair Value, Inputs, Level 1 [Member] | Mutual Funds | Other Noncurrent Assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	[3]	36	32
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets		14	12
Fair Value, Inputs, Level 2 [Member] | Cash and Cash Equivalents
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets		14	12
Fair Value, Inputs, Level 2 [Member] | Short Term Investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets		0	0
Fair Value, Inputs, Level 2 [Member] | Other Current Assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreign currency exchange contracts assets	[1]	0	1
Fair Value, Inputs, Level 2 [Member] | Accrued Expenses
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreign currency exchange contracts liabilities	[2]	(27)	(13)
Fair Value, Inputs, Level 2 [Member] | U.S. Treasury and Government Debt Securities | Cash and Cash Equivalents
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets		0
Fair Value, Inputs, Level 2 [Member] | U.S. Treasury and Government Debt Securities | Short Term Investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets			0
Fair Value, Inputs, Level 2 [Member] | Certificates of Deposit | Cash and Cash Equivalents
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets		14	12
Fair Value, Inputs, Level 2 [Member] | Mutual Funds | Other Current Assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	[1]	0	0
Fair Value, Inputs, Level 2 [Member] | Mutual Funds | Other Noncurrent Assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	[3]	0	0
Cash | Cash and Cash Equivalents
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets		757	730
Cash | Fair Value, Inputs, Level 1 [Member] | Cash and Cash Equivalents
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets		757	730
Cash | Fair Value, Inputs, Level 2 [Member] | Cash and Cash Equivalents
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets		0	0
Money Market Funds | Cash and Cash Equivalents
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets		707	1,161
Money Market Funds | Fair Value, Inputs, Level 1 [Member] | Cash and Cash Equivalents
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets		707	1,161
Money Market Funds | Fair Value, Inputs, Level 2 [Member] | Cash and Cash Equivalents
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets		$ 0	$ 0

[1] Reported as other current assets in the condensed consolidated balance sheets

[2] Reported as accrued expenses in the condensed consolidated balance sheets

[3] Reported as other non-current assets in the condensed consolidated balance sheets

XML

Financial Instruments and Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions	Oct. 25, 2024	Apr. 26, 2024
Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Instrument, Fair Value Disclosure	$ 1,881	$ 2,209

XML

Financing Arrangements - Carrying Value of Long-Term Debt (Detail) - USD ($) $ in Millions	Oct. 25, 2024	Apr. 26, 2024
Debt Instrument [Line Items]
Total senior notes	$ 1,993	$ 2,392
Less: Current portion of long-term debt	(749)	(400)
Long-term debt	1,244	1,992
Senior Notes
Debt Instrument [Line Items]
Total principal amount	2,000	2,400
Unamortized discount and issuance costs	(7)	(8)
Senior Notes | Due September 2024
Debt Instrument [Line Items]
Total principal amount	$ 0	$ 400
Debt Instrument, Effective Interest Rate	3.42%	3.42%
Senior Notes | Due June 2025
Debt Instrument [Line Items]
Total principal amount	$ 750	$ 750
Debt Instrument, Effective Interest Rate	2.03%	2.03%
Senior Notes | Due June 2027
Debt Instrument [Line Items]
Total principal amount	$ 550	$ 550
Debt Instrument, Effective Interest Rate	2.51%	2.51%
Senior Notes | Due June 2030
Debt Instrument [Line Items]
Total principal amount	$ 700	$ 700
Debt Instrument, Effective Interest Rate	2.81%	2.81%

XML

Financing Arrangements - Additional Information (Detail) $ in Millions		1 Months Ended	3 Months Ended	6 Months Ended
	May 01, 2023 USD ($) Extension	Jul. 28, 2017 USD ($)	Jul. 26, 2024 USD ($)	Oct. 25, 2024 USD ($)	Oct. 27, 2023 USD ($)	Apr. 26, 2024 USD ($)
Debt Instrument [Line Items]
Repayments of Debt				$ 400	$ 0
Commercial paper notes				0		$ 0
Revolving Credit Facility
Debt Instrument [Line Items]
Credit facility, amount	$ 1,000
Credit facility, maturity	Jan. 22, 2026
Credit facility, number of extensions | Extension	2
Credit facility, extensions period	1 year
Credit facility, amounts drawn			$ 0
Revolving Credit Facility | Letter Of Credit Sub Facility
Debt Instrument [Line Items]
Credit facility, amount	$ 50
Commercial Paper | Maximum
Debt Instrument [Line Items]
Notes issued, principal amount		$ 1,000
Debt instrument maturity period		397 days
Senior Notes
Debt Instrument [Line Items]
Notes issued, principal amount				$ 2,000		2,400
Notes issued, interest rate				3.30%
Senior Notes | Revolving Credit Facility
Debt Instrument [Line Items]
Notes issued, principal amount				$ 407
Senior Notes | Due September 2024
Debt Instrument [Line Items]
Notes issued, principal amount				0		400
Senior Notes | Due June 2025
Debt Instrument [Line Items]
Notes issued, principal amount				750		750
Senior Notes | Due June 2027
Debt Instrument [Line Items]
Notes issued, principal amount				550		550
Senior Notes | Due June 2030
Debt Instrument [Line Items]
Notes issued, principal amount				$ 700		$ 700

XML

Financing Arrangements - Future Principal Debt Maturities (Detail) - Senior Notes - USD ($) $ in Millions	Oct. 25, 2024	Apr. 26, 2024
Debt Instrument [Line Items]
2025 (remainder)	$ 0
2026	750
2027	0
2028	550
2029	0
Thereafter	700
Total	$ 2,000	$ 2,400

XML

Leases - Additional Information (Detail) - Maximum	Oct. 25, 2024
Leases [Line Items]
Operating remaining lease term	18 years
Equipment
Leases [Line Items]
Operating remaining lease term	4 years
Automobiles
Leases [Line Items]
Operating remaining lease term	4 years

XML

Leases - Components of Lease Cost Related to Operating Leases (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Oct. 25, 2024	Oct. 27, 2023	Oct. 25, 2024	Oct. 27, 2023
Leases [Abstract]
Operating lease cost	$ 12	$ 14	$ 25	$ 28
Variable lease cost	4	4	8	8
Total lease cost	$ 16	$ 18	$ 33	$ 36

XML

Leases - Supplemental Cash Flow Information Related to Operating Leases (Detail) - USD ($) $ in Millions	6 Months Ended
	Oct. 25, 2024	Oct. 27, 2023
Leases [Abstract]
Cash paid for amounts included in the measurement of operating lease liabilities	$ 24	$ 26
Right-of-use assets obtained in exchange for new operating lease obligations	$ 6	$ 13

XML

Leases - Supplemental Balance Sheet Information Related to Operating Leases (Detail) - USD ($) $ in Millions	Oct. 25, 2024	Apr. 26, 2024
Leases [Abstract]
Other non-current assets	$ 242	$ 247
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Other non-current assets	Other non-current assets
Accrued expenses	$ 41	$ 40
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Accrued expenses	Accrued expenses
Other long-term liabilities	$ 216	$ 220
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Other long-term liabilities	Other long-term liabilities
Total operating lease liabilities	$ 257	$ 260
Weighted Average Remaining Lease Term	8 years 8 months 12 days	9 years 2 months 12 days
Weighted Average Discount Rate	3.30%	3.10%

XML

Leases - Future Minimum Operating Lease Payments (Detail) - USD ($) $ in Millions	Oct. 25, 2024	Apr. 26, 2024
Leases [Abstract]
2025 (remainder)	$ 24
2026	45
2027	39
2028	32
2029	28
Thereafter	128
Total lease payments	296
Less: Interest	(39)
Total	$ 257	$ 260

XML

Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions				3 Months Ended		6 Months Ended		257 Months Ended
	Jan. 23, 2025	Jan. 04, 2025	Nov. 19, 2024	Oct. 25, 2024	Oct. 27, 2023	Oct. 25, 2024	Oct. 27, 2023	Oct. 25, 2024	Oct. 25, 2025
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Modification of liability-classified awards					$ 4		$ 4
Total stock-based compensation expense				$ 103	$ 93	$ 188	180
Unrecognized compensation expense related to equity awards				764		$ 764		$ 764
Unrecognized compensation expense will be amortized on a straight-line basis over a weighted-average remaining period, in years						2 years 2 months 12 days
Stock repurchase program, authorized amount				$ 17,100		$ 17,100		$ 17,100	$ 1,000
Repurchase of common stock, shares								377,000,000
Average price of common stock repurchased under repurchase program								$ 43.25
Aggregate purchase price of common stock authorized under repurchase program						$ 700	$ 700	$ 16,300
Cash dividends declared, per common share			$ 0.52	$ 0.52	$ 0.5	$ 1.04	$ 1
Dividends [Member] | Subsequent Event
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cash dividend payable date	Jan. 22, 2025
Cash dividend record date		Jan. 03, 2025
Performance Based Restricted Stock Unit
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
RSUs granted, Number of Shares						3,000,000
RSUs granted, Weighted-Average Grant Date Fair Value						$ 127.61
Vesting period, description						For the remaining half of the PBRSUs granted in the six months ended October 25, 2024, the number of shares used to calculate the settlement amount will depend upon the Company's billings result average over the three-year performance period. The billings result average is computed based on achievement against annual billings targets, with each target set at the beginning of the respective fiscal year, during the three-year performance period. Billings for purposes of measuring the performance of these PBRSUs means the total obtained by adding net revenues as reported on the Company's Consolidated Statements of Income to the amount reported as the change in deferred revenue and financed unearned services revenue on the Consolidated Statements of Cash Flows for the applicable measurement period, excluding the impact of fluctuations in foreign currency exchange rates.
RSUs grant date fair value				$ 62		$ 62		$ 62
Performance Based Restricted Stock Unit | PBRSU Three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period						3 years
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of Common stock issued to settle PBRSUs of target shares granted						0.00%
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of Common stock issued to settle PBRSUs of target shares granted						200.00%

XML

Stockholders' Equity - Stock-Based Compensation Expense (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Oct. 25, 2024	Oct. 27, 2023	Oct. 25, 2024	Oct. 27, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$ 103	$ 93	$ 188	$ 180
Cost of Product Revenues
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	2	1	3	2
Cost of Services Revenues
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	6	6	12	12
Sales and Marketing
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	43	37	78	73
Research and Development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	37	35	68	67
General and Administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$ 15	$ 14	$ 27	$ 26

XML

Stockholders' Equity - Summary of Activities Related to Stock Repurchase Program (Detail) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended		257 Months Ended
	Oct. 25, 2024	Oct. 27, 2023	Oct. 25, 2024	Oct. 27, 2023	Oct. 25, 2024
Equity Class Of Treasury Stock [Line Items]
Number of shares repurchased					377,000,000
Average price per share					$ 43.25
Stock repurchases allocated	$ 300	$ 300	$ 700	$ 700
Retained Earnings
Equity Class Of Treasury Stock [Line Items]
Stock repurchases allocated	288	$ 233	$ 672	$ 609
Stock Repurchase Program
Equity Class Of Treasury Stock [Line Items]
Number of shares repurchased			5,800,000
Average price per share			$ 121.58
Remaining authorization at end of period	$ 802		$ 802		$ 802
Stock Repurchase Program | Additional Paid-in Capital
Equity Class Of Treasury Stock [Line Items]
Stock repurchases allocated			28
Stock Repurchase Program | Retained Earnings
Equity Class Of Treasury Stock [Line Items]
Stock repurchases allocated			$ 672

XML

Stockholders' Equity - Summary of Activities Related to Dividends on Common Stock (Detail) - USD ($) $ / shares in Units, $ in Millions		3 Months Ended		6 Months Ended
	Nov. 19, 2024	Oct. 25, 2024	Oct. 27, 2023	Oct. 25, 2024	Oct. 27, 2023
Dividends, Common Stock [Abstract]
Dividends per share declared	$ 0.52	$ 0.52	$ 0.5	$ 1.04	$ 1
Dividend payments				$ 213	$ 209
Additional Paid-in Capital
Dividends, Common Stock [Abstract]
Dividend payments				130	171
Retained Earnings
Dividends, Common Stock [Abstract]
Dividend payments				$ 83	$ 38

XML

Stockholders' Equity - Accumulated Other Comprehensive Income (Loss) by Component Net of Tax (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Oct. 25, 2024	Oct. 27, 2023	Oct. 25, 2024	Oct. 27, 2023
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balances	$ 929	$ 873	$ 1,146	$ 1,159
Total other comprehensive income (loss)	4	(7)	4	(4)
Balances	892	770	892	770
Foreign Currency Translation Adjustments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balances			(53)
Other comprehensive income (loss), net of tax			4
Amounts reclassified from AOCI, net of tax			0
Total other comprehensive income (loss)			4
Balances	(49)		(49)
Defined Benefit Obligation Adjustments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balances			(7)
Other comprehensive income (loss), net of tax			0
Amounts reclassified from AOCI, net of tax			0
Total other comprehensive income (loss)			0
Balances	(7)		(7)
Unrealized Gains (Losses) on Available-for-Sale Securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balances			0
Other comprehensive income (loss), net of tax			1
Amounts reclassified from AOCI, net of tax			0
Total other comprehensive income (loss)			1
Balances	1		1
Unrealized Gains (Losses) on Derivative Instruments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balances			1
Other comprehensive income (loss), net of tax			(3)
Amounts reclassified from AOCI, net of tax			2
Total other comprehensive income (loss)			(1)
Balances	0		0
AOCI Attributable to Parent
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balances	(59)	(48)	(59)	(51)
Other comprehensive income (loss), net of tax			2
Amounts reclassified from AOCI, net of tax			2
Total other comprehensive income (loss)	4	(7)	4	(4)
Balances	$ (55)	$ (55)	$ (55)	$ (55)

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Stockholders' Equity - Amounts Reclassified Out of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Oct. 25, 2024	Oct. 27, 2023	Oct. 25, 2024	Oct. 27, 2023
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Realized losses (gains) on cash flow hedges	$ 1,658	$ 1,562	$ 3,199	$ 2,994
Reclassification out of Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total reclassifications	2	(3)	2	(4)
Reclassification out of Accumulated Other Comprehensive Income | Realized gains on cash flow hedges
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Realized losses (gains) on cash flow hedges	$ 2	$ (3)	$ 2	$ (4)

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Derivatives and Hedging Activities - Schedule of Notional Value of Outstanding Foreign Currency Forward Contracts (Detail) - Foreign Exchange Forward Contracts - USD ($) $ in Millions	Oct. 25, 2024	Apr. 26, 2024
Long | Cash Flow Hedges
Derivative [Line Items]
Forward contracts, Notional Amount	$ 12	$ 11
Non Designated | Short | Balance Sheet Contracts
Derivative [Line Items]
Forward contracts, Notional Amount	920	881
Non Designated | Long | Balance Sheet Contracts
Derivative [Line Items]
Forward contracts, Notional Amount	$ 128	$ 71

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Derivatives and Hedging Activities - Schedule of Derivative Instruments Not Designated as Cash Flow Hedges (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Oct. 25, 2024	Oct. 27, 2023	Oct. 25, 2024	Oct. 27, 2023
Foreign Exchange Forward Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Foreign currency exchange contracts	$ 1	$ (45)	$ 14	$ (49)

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Restructuring Charges - Additional Information (Detail)	Oct. 25, 2024	Oct. 27, 2023
Restructuring Cost and Reserve [Line Items]
Reduction of global work force	2.00%
Minimum [Member]
Restructuring Cost and Reserve [Line Items]
Reduction of global work force		1.00%

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Restructuring Charges - Activities Related to Restructuring Reserves (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Oct. 25, 2024	Oct. 27, 2023	Oct. 25, 2024	Oct. 27, 2023
Restructuring and Related Activities [Abstract]
Balance at beginning of period			$ 10	$ 36
Net charges	$ 12	$ 5	29	31
Cash payments			(22)	(46)
Balance at end of period	$ 17	$ 21	$ 17	$ 21

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Income Taxes - Effective Tax Rates (Detail)	6 Months Ended
	Oct. 25, 2024	Oct. 27, 2023
Income Tax Disclosure [Abstract]
Effective tax rates	17.00%	23.80%

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Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	Oct. 25, 2024	Apr. 26, 2024
Income Tax Contingency [Line Items]
Gross unrecognized tax benefits	$ 223
Gross unrecognized tax benefits included in other long-term liabilities	161	$ 153
Unrecognized tax benefits that would affect provision for income taxes	$ 162

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Net Income per Share - Computation of Basic and Diluted Net Income Per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Oct. 25, 2024	Oct. 27, 2023	Oct. 25, 2024	Oct. 27, 2023
Earnings Per Share [Abstract]
Net income	$ 299	$ 233	$ 547	$ 382
Shares used in basic computation	204	208	205	210
Dilutive impact of employee equity award plans	6	3	6	4
Shares used in diluted computation	210	211	211	214
Basic	$ 1.47	$ 1.12	$ 2.67	$ 1.82
Diluted	$ 1.42	$ 1.1	$ 2.59	$ 1.79

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Net Income per Share - Additional Information (Detail) - shares shares in Millions	3 Months Ended		6 Months Ended
	Oct. 25, 2024	Oct. 27, 2023	Oct. 25, 2024	Oct. 27, 2023
Earnings Per Share [Abstract]
Outstanding employee equity awards excluded from diluted net income per share calculations	0	3	0	4

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Segment Geographic and Significant Customer Information - Additional Information (Detail) $ in Millions	3 Months Ended			6 Months Ended
	Oct. 25, 2024 USD ($)	Jul. 26, 2024 Segment	Oct. 27, 2023 USD ($)	Oct. 25, 2024 USD ($)	Oct. 27, 2023 USD ($)
Segment Reporting Information [Line Items]
Number of industry segment | Segment		2
Net revenues	$ 1,658		$ 1,562	$ 3,199	$ 2,994
U.S.
Segment Reporting Information [Line Items]
Net revenues	$ 807		$ 729	$ 1,506	$ 1,427

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Segment Geographic and Significant Customer Information - Schedule of Financial Information by Segment (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Oct. 25, 2024	Oct. 27, 2023	Oct. 25, 2024	Oct. 27, 2023
Segment Reporting Information [Line Items]
Net revenues	$ 1,658	$ 1,562	$ 3,199	$ 2,994
Segment cost of revenues	464	437	892	857
Segment gross profit	$ 1,194	$ 1,125	$ 2,307	$ 2,137
Segment gross margin	72.00%	72.00%	72.10%	71.40%
Unallocated cost of revenues	$ 17	$ 15	$ 32	$ 31
Gross profit	$ 1,177	$ 1,110	$ 2,275	$ 2,106
Total gross margin	71.00%	71.10%	71.10%	70.30%
Operating Segments | Hybrid Cloud Segment
Segment Reporting Information [Line Items]
Net revenues	$ 1,490	$ 1,408	$ 2,872	$ 2,686
Segment cost of revenues	420	385	802	754
Segment gross profit	$ 1,070	$ 1,023	$ 2,070	$ 1,932
Segment gross margin	71.80%	72.70%	72.10%	71.90%
Operating Segments | Public Cloud Segment
Segment Reporting Information [Line Items]
Net revenues	$ 168	$ 154	$ 327	$ 308
Segment cost of revenues	44	52	90	103
Segment gross profit	$ 124	$ 102	$ 237	$ 205
Segment gross margin	73.80%	66.20%	72.50%	66.60%
Product [Member]
Segment Reporting Information [Line Items]
Net revenues	$ 768	$ 706	$ 1,437	$ 1,296
Segment cost of revenues	305	275	573	539
Product [Member] | Operating Segments | Hybrid Cloud Segment
Segment Reporting Information [Line Items]
Net revenues	768	706	1,437	1,296
Segment cost of revenues	305	275	573	539
Product [Member] | Operating Segments | Public Cloud Segment
Segment Reporting Information [Line Items]
Net revenues	0	0	0	0
Segment cost of revenues	0	0	0	0
Public Cloud
Segment Reporting Information [Line Items]
Net revenues	168	154	327	308
Segment cost of revenues	44	52	90	103
Public Cloud | Operating Segments | Hybrid Cloud Segment
Segment Reporting Information [Line Items]
Net revenues	0	0	0	0
Segment cost of revenues	0	0	0	0
Public Cloud | Operating Segments | Public Cloud Segment
Segment Reporting Information [Line Items]
Net revenues	168	154	327	308
Segment cost of revenues	44	52	90	103
Support
Segment Reporting Information [Line Items]
Net revenues	635	623	1,266	1,234
Segment cost of revenues	51	50	101	97
Support | Operating Segments | Hybrid Cloud Segment
Segment Reporting Information [Line Items]
Net revenues	635	623	1,266	1,234
Segment cost of revenues	51	50	101	97
Support | Operating Segments | Public Cloud Segment
Segment Reporting Information [Line Items]
Net revenues	0	0	0	0
Segment cost of revenues	0	0	0	0
Professional and Other Services
Segment Reporting Information [Line Items]
Net revenues	87	79	169	156
Segment cost of revenues	64	60	128	118
Professional and Other Services | Operating Segments | Hybrid Cloud Segment
Segment Reporting Information [Line Items]
Net revenues	87	79	169	156
Segment cost of revenues	64	60	128	118
Professional and Other Services | Operating Segments | Public Cloud Segment
Segment Reporting Information [Line Items]
Net revenues	0	0	0	0
Segment cost of revenues	$ 0	$ 0	$ 0	$ 0

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Segment Geographic and Significant Customer Information - Schedule of Financial Information by Segment (Parenthetical) (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Oct. 25, 2024	Oct. 27, 2023	Oct. 25, 2024	Oct. 27, 2023
Segment Reporting [Abstract]
Unallocated cost of revenue stock-based compensation expense	$ 8	$ 7	$ 15	$ 14
Unallocated cost of revenue amortization of intangible assets	$ 9	$ 8	$ 17	$ 17

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Segment Geographic and Significant Customer Information - Schedule of Revenues by Geographic Region (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Oct. 25, 2024	Oct. 27, 2023	Oct. 25, 2024	Oct. 27, 2023
Segment Reporting Information [Line Items]
Net revenues	$ 1,658	$ 1,562	$ 3,199	$ 2,994
United States, Canada And Latin America (Americas)
Segment Reporting Information [Line Items]
Net revenues	862	789	1,625	1,543
Europe, Middle East And Africa (EMEA)
Segment Reporting Information [Line Items]
Net revenues	543	525	1,056	971
Asia Pacific (APAC)
Segment Reporting Information [Line Items]
Net revenues	$ 253	$ 248	$ 518	$ 480

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Segment Geographic and Significant Customer Information - Schedule of Cash, Cash Equivalents and Short-Term Investments (Detail) - USD ($) $ in Millions	Oct. 25, 2024	Apr. 26, 2024
Segment Reporting Information [Line Items]
Cash, cash equivalents and short-term investments	$ 2,222	$ 3,252
U.S.
Segment Reporting Information [Line Items]
Cash, cash equivalents and short-term investments	311	1,142
International
Segment Reporting Information [Line Items]
Cash, cash equivalents and short-term investments	$ 1,911	$ 2,110

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Segment Geographic and Significant Customer Information - Schedule of Property and Equipment Net by Geographic Areas (Detail) - USD ($) $ in Millions	Oct. 25, 2024	Apr. 26, 2024
Segment Reporting, Asset Reconciling Item [Line Items]
Property and equipment	$ 593	$ 604
U.S.
Segment Reporting, Asset Reconciling Item [Line Items]
Property and equipment	369	378
International
Segment Reporting, Asset Reconciling Item [Line Items]
Property and equipment	$ 224	$ 226

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Segment Geographic and Significant Customer Information - Significant Customers (Detail) - Net Revenue - Customer Concentration Risk	3 Months Ended		6 Months Ended
	Oct. 25, 2024	Oct. 27, 2023	Oct. 25, 2024	Oct. 27, 2023
Arrow Electronics, Inc.
Segment Reporting Information [Line Items]
Percentage of net revenues	21.00%	22.00%	22.00%	23.00%
TD Synnex Corporation (previously presented as Tech Data Corporation)
Segment Reporting Information [Line Items]
Percentage of net revenues	24.00%	22.00%	23.00%	21.00%

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Segment Geographic and Significant Customer Information - Schedule of Net Accounts Receivable from Significant Customers (Detail) - Accounts Receivable - Credit Concentration Risk	3 Months Ended	6 Months Ended
	Oct. 25, 2024	Oct. 25, 2024
Arrow Electronics, Inc.
Segment Reporting Information [Line Items]
Percentage of net accounts receivable	10.00%	7.00%
TD Synnex Corporation (previously presented as Tech Data Corporation)
Segment Reporting Information [Line Items]
Percentage of net accounts receivable	26.00%	26.00%

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Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions	6 Months Ended
	Oct. 25, 2024	Oct. 27, 2023	Apr. 26, 2024
Commitments and Contingencies Disclosure [Line Items]
Accrued purchase commitments with contract manufacturers	$ 17		$ 20
Sale of finance receivables	26	$ 27
Accrued settlement amount	$ 0
Management estimation of loss contingency	Although management at present believes that the ultimate outcome of these proceedings, individually and in the aggregate, will not materially harm our financial position, results of operations, cash flows, or overall trends, legal proceedings are subject to inherent uncertainties, and unfavorable rulings or other events could occur. Unfavorable resolutions could include significant monetary damages. In addition, in matters for which injunctive relief or other conduct remedies are sought, unfavorable resolutions could include an injunction or other order prohibiting us from selling one or more products at all or in particular ways or requiring other remedies. An unfavorable outcome may result in a material adverse impact on our business, results of operations, financial position, cash flows and overall trends
Maximum
Commitments and Contingencies Disclosure [Line Items]
Terms of recourse leases	3 years
Inventory
Commitments and Contingencies Disclosure [Line Items]
Purchase orders and other commitments	$ 500
Other
Commitments and Contingencies Disclosure [Line Items]
Purchase orders and other commitments	$ 400