8 paragraphs in Risk Factors of the 10-K filed Jun 5, 2026
with nothing like them in the 10-K filed Jun 9, 2025. Quoted exactly.
Paragraphs that were only edited are under 10-K change.
Compared with the Risk Factors in the latest 10-K of the other 74 Technology companies:
a paragraph with at least half its words the same at another company is called similar, and the companies are listed under it.
A paragraph most of them have is marked boilerplate. No line means no other company has one like it.
This counts text; it does not say how serious a risk is.
The rapid emergence of generative artificial intelligence (GenAI), including agentic AI, is reshaping demand patterns for storage and data management infrastructure in ways that are still evolving. Our ability to keep pace with the changing requirements of these technologies, and to adapt our products and go-to-market strategies accordingly, is critical to maintaining our competitive position. If we fail to do so, or if the pace of AI infrastructure investment shifts in ways we do not anticipate, our business, operating results, financial condition, and cash flows could be adversely affected.
AI technologies increasingly require seamless data management across hybrid and multi-cloud environments. If we were unable to effectively deliver our solutions across these fragmented environments to address customers’ AI challenges, customers may turn to alternative providers, which could adversely affect our competitive position and revenue.
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that may increase our risk exposure. We face significant competition in the market and from other companies regarding AI technologies.
Similar paragraph at 1 of 74 other Technology companies:
ZBRA
Customer demand continues to be influenced by cloud adoption, digital transformation initiatives, cybersecurity requirements, and increasing use of artificial intelligence and data-driven applications, driving significant changes in storage architectures and solution requirements. The emergence of artificial intelligence workloads has introduced additional competitive dynamics, particularly in areas related to data readiness, performance, scalability, and integration with compute and cloud ecosystems. Additionally, cloud service providers offer storage on demand without requiring capital expenditure, which meets rapidly evolving business needs and has altered the competitive landscape. We also face competition from alternative architectures or approaches that may reduce or eliminate demand for some of our offerings.
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In response to evolving and increasing security threats, the U.S. government has imposed, and may impose in the future, requirements relating to product security, supply chain security, and cyber/information security that have impacted, and may in the future impact NetApp. Failure to meet these requirements as they apply to us and our products may result in delays or inability to sell our products to government entities.
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cybersecurity threats and also may suffer cybersecurity incidents or other security breaches. Our ability to monitor these third parties’ information security practices is limited, and these third parties may not have adequate information security measures in place. In addition, supply-chain attacks have increased in frequency and severity, and third parties’ infrastructure in our supply chain or our third-party partners’ supply chains may become compromised. A cybersecurity incident at a third-party service provider could result in unauthorized access to or disclosure of personal data for which NetApp has protection obligations, potentially triggering breach notification requirements across multiple jurisdictions and exposing NetApp to regulatory enforcement actions, fines, and litigation.
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maintenance could impair the performance of our products and services, which could lead to a perception of a quality or reliability issue. Customers have experienced, and may in the future experience, losses that result from or are alleged to result from defects or flaws in our products and services, and we have been, and may in the future be, subjected to claims for damages, including consequential damages.
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same extent as the U.S. Our means of protecting our proprietary rights may not be adequate or our competitors may independently develop similar technology, duplicate our products, or design around patents issued to us or other intellectual property rights of ours. Individuals may improperly take our intellectual property after terminating their employment or other engagements with us, which could lead to intellectual property leakage to competitors and a loss of our competitive advantages.
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New in the latest 10-Q
31 paragraphs in the 10-Q filed Sep 2, 2026 with nothing like
them in the 10-Q filed Feb 26, 2026 (at least half the words must differ; new numbers alone do not count).
Quoted exactly, grouped by the item heading above them. This is text that changed, not a judgement of how serious it is.
Financial statements and notes
Three Months Ended July 31, 2026 July 25, 2025 ────────────────────────────────────────────────────────────────────────────────────────────────────────────────────── Revenues: Product $ 987 $ 654 Services 1,038 905 Net revenues 2,025 1,559 Cost of revenues: Cost of product 450 302 Cost of services 156 159 Total cost of revenues 606 461 Gross profit 1,419 1,098 Operating expenses: Sales and marketing 507 461 Research and development 274 242 General and administrative 98 84 Restructuring charges 56 2 Total operating expenses 935 789 Income from operations 484 309 Other expense, net — (5) Income before income taxes 484 304 Provision for income taxes 109 71 Net income $ 375 $ 233 Net income per share: Basic $ 1.91 $ 1.16 Diluted $ 1.88 $ 1.15 Shares used in net income per share calculations: Basic 196 201 Diluted 200 203
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Three Months Ended July 31, 2026 July 25, 2025 ──────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────── Net income $ 375 $ 233 Other comprehensive (loss) income: Foreign currency translation adjustments (10) 26 Unrealized losses on available-for-sale securities: Unrealized holding losses arising during the period — (1) Unrealized gains (losses) on cash flow hedges: Unrealized holding gains (losses) arising during the period 1 (1) Reclassification adjustments for (gains) losses included in net income (1) 2 Other comprehensive (loss) income (10) 26 Comprehensive income $ 365 $ 259
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Three Months Ended July 31, 2026 July 25, 2025 ──────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────── Cash flows from operating activities: Net income $375 $233 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 33 51 Non-cash operating lease cost 11 11 Stock-based compensation 98 83 Deferred income taxes (5) 9 Other items, net (15) 46 Changes in assets and liabilities: Accounts receivable 317 466 Inventories (176) 54 Other operating assets (114) 110 Accounts payable 19 (107) Accrued expenses (75) (240) Deferred revenue 32 (48) Other operating liabilities 3 5 Net cash provided by operating activities 503 673 Cash flows from investing activities: Purchases of investments (1,603) (741) Maturities, sales and collections of investments 1,109 598 Purchases of property and equipment (102) (53) Acquisition of business, net of cash acquired (78) — Other investing activities, net — 15 Net cash used in investing activities (674) (181) Cash flows from financing activities: Proceeds from issuance of common stock under employee stock award plans 57 54 Payments for taxes related to net share settlement of stock awards (74) (57) Repurchase of common stock (200) (300) Repayments and extinguishment of debt — (750) Dividends paid (102) (104) Net cash used in financing activities (319) (1,157) Effect of exchange rate changes on cash, cash equivalents and restricted cash (6) 7 Net change in cash, cash equivalents and restricted cash (496) (658) Cash, cash equivalents and restricted cash: Beginning of period 2,075 2,749 End of period $1,579 $2,091
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NetApp, Inc. (NetApp, we, us, our, or the Company) empowers organizations to realize the full potential of their data in a rapidly evolving digital world. NetApp delivers innovative solutions that enable seamless data management, protection, and mobility across on-premises, hybrid, and multi-cloud environments.
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3. Business Combination DataPelago, Inc. Acquisition On July 16, 2026, we acquired all the outstanding shares of DataPelago, Inc., (DataPelago), a privately-held company, for $193 million, of which $87 million was paid in cash at closing. The remaining $106 million represents contingent consideration, which we recognized in accrued expenses in our condensed consolidated balance sheet, and which will be paid if certain criteria as defined in the merger agreement are achieved. DataPelago is an AI data infrastructure company recognized for its innovative approach to eliminate data processing bottlenecks for AI and analytics workloads.
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The preliminary acquisition-date values of the assets acquired and liabilities assumed are as follows (in millions): Amount Cash $ 9 Developed technology 22 Goodwill 151 Other assets 16 Total assets acquired 198 Liabilities assumed (5) Total purchase price $ 193 The acquired net assets of DataPelago were recorded at their estimated values, which we determined with the assistance of valuations performed by third party specialists. The acquisition resulted in the recognition of a developed technology intangible asset with an estimated useful life of five years. We expect to realize revenue synergies and anticipate future opportunities for growth through the ability to leverage additional future products and capabilities. These factors, among others, contributed to a purchase price in excess of the estimated value of the identifiable net assets acquired, and as a result, we have recorded goodwill in connection with the acquisition. This goodwill has been allocated between our Hybrid Cloud and Public Cloud reporting units, and it is not deductible for income tax purposes. The purchase price allocation is preliminary and subject to revision as additional information about the fair value of acquired assets and liabilities assumed becomes available during the remainder of the measurement period, a period not to exceed 12 months from the acquisition date. Similarly, the allocation of goodwill among our reporting units is subject to revision. The results of operations related to the acquisition of DataPelago have been included in our condensed consolidated statements of income from the acquisition date. Pro forma results of operations have not been presented because the impact from the acquisition was not material to our consolidated results of operations.
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Of the total $2.3 billion in purchase commitments, $2.1 billion is due in the next twelve months, with the remainder due thereafter.
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NetApp is a global leader in intelligent data infrastructure, empowering organizations to realize the full potential of their data in a rapidly evolving digital world. Headquartered in San Jose, California, and serving customers in approximately 150 countries, NetApp delivers innovative solutions that enable seamless data management, protection, and mobility across on-premises, hybrid, and multi-cloud environments.
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Our flagship ONTAP® data management software, together with a comprehensive portfolio of all-flash, hybrid-flash, and cloud-native offerings, forms the foundation for customers’ digital transformation initiatives. NetApp’s deep integration with all major public cloud providers - Amazon Web Services (AWS), Microsoft Azure, and Google Cloud - enables our customers to run critical workloads anywhere, with consistent performance, security, and governance.
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NetApp's strategic focus is on modernizing data infrastructure, enabling resilient and secure operations, optimizing cloud strategies, and accelerating artificial intelligence (AI) adoption. Our portfolio includes advanced AI-ready infrastructure, Storage-as-a-Service (Keystone), and robust cyber resilience solutions, and we continue to invest in innovation. Our partnerships with leading technology companies and a global ecosystem of channel partners further extend our reach and solution capabilities.
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Inflationary pressures and global supply chain constraints continued to impact our operations during the first quarter of fiscal 2027. We have experienced increased costs for memory and other components, which have affected our gross margins, and we expect costs will remain elevated, or continue to increase, in the near term. Additionally, the tight supply environment for specific products, which is anticipated to persist, could pose challenges in meeting customer demand for those products.
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• We raised our pricing in the fourth quarter of fiscal 2026 and at the beginning of the second quarter of fiscal 2027, in line with market trends. We expect to continue adjusting prices as necessary to offset rising costs and remain aligned with the market. While we aim to match supplier costs with our pricing to customers, we recognize the need to give customers time to adjust to these changes.
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• We are leveraging our relationships with multiple suppliers where available to enable component availability and manage costs effectively. This strategy helps us maintain competitive positions in the market from a pricing standpoint. Our history of successful supplier management positions us well to navigate these challenges.
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• We continue to offer a wide range of solutions to meet various customer needs and priorities. This includes competitive storage options, all-flash solutions, hybrid-flash solutions, public cloud solutions, and our Keystone Storage-as-a-Service offering. By providing diverse options, we aim to align with our customers’ budget priorities and deliver the best value offerings.
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These actions are part of our ongoing efforts to mitigate the impact of inflation and supply chain constraints on our operating results. We will continue to monitor these trends and uncertainties and adjust our strategies as needed to maintain our financial performance.
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On July 16, 2026, we acquired all the outstanding shares of DataPelago, Inc., a privately-held company recognized for its innovative approach to eliminate data processing bottlenecks for AI and analytics workloads, for $193 million. Of this amount, $87 million was paid in cash at closing, and the remainder will be paid in a future period if certain criteria as defined in the merger agreement are achieved.
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Three Months Ended July 31, 2026 July 25, 2025 ───────────────────────────────────────────────────────────────────────── Revenues: Product 49% 42% Services 51 58 Net revenues 100 100 Cost of revenues: Cost of product 22 19 Cost of services 8 10 Gross profit 70 70 Operating expenses: Sales and marketing 25 30 Research and development 14 16 General and administrative 5 5 Restructuring charges 3 — Total operating expenses 46 51 Income from operations 24 20 Other expense, net — — Income before income taxes 24 19 Provision for income taxes 5 5 Net income 19% 15%
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Hybrid Cloud Segment Net Revenues by Storage Category (in millions, except percentages):
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to growing customer demand for our all-flash storage solutions, supported by price increases we implemented in the fourth quarter of fiscal 2026.
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Sales to United States (U.S.) public sector markets includes revenue from the U.S. federal government and U.S. state governments, local municipalities and education institutions. While revenues attributable to all geographies increased on a dollar basis in the first quarter of fiscal 2027 compared to the prior-year period, APAC and EMEA revenues grew at a higher rate than Americas revenues (primarily due to slower Americas Commercial growth), resulting in a minor shift in geographical revenue mix.
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• Accounts receivable decreased by $317 million, primarily reflecting more favorable invoicing linearity in the first quarter of fiscal 2027 compared to the fourth quarter of fiscal 2026.
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• Inventories increased by $176 million, primarily due to higher strategic purchases of components and an increase in finished goods to fulfill customer demand.
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Risk Factors
We often incur expenses before receiving related benefits and make purchase commitments based on forecasted demand. It may be difficult to reduce expenses or adjust commitments quickly, or at all, if demand declines, and we may be committed to purchasing components at prices that exceed prevailing market prices.
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We base our expense levels and purchase commitments partly on future revenue expectations, and a significant portion of our expenses are fixed. Reducing these fixed costs and purchase commitments quickly, or at all, can be challenging, and if our revenue falls below expectations, our operating results could be adversely impacted. During periods of uneven growth or decline, we may incur costs before realizing the anticipated benefits, which could also harm our operating results.
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We have made, and will continue to make, significant investments in engineering, sales, service and support, marketing, and other functions to support and grow our business. The costs associated with these investments are likely to be recognized earlier than some of the related anticipated benefits, such as revenue growth. Additionally, the return on these investments may be lower or may develop more slowly than we expect, which could harm our business, operating results, financial condition, and cash flows.
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A significant portion of our reported purchase commitments consists of firm, non-cancelable, and unconditional commitments with contract manufacturers and component suppliers. These commitments may require us to purchase materials and components at prices established in advance of delivery. If market prices for such materials or components decline, we could be obligated to acquire inventory at costs that exceed prevailing market prices, which could adversely affect our gross margins, inventory valuations, operating results, cash flows, and competitiveness. In addition, if demand for our products is lower than anticipated, we may experience excess or obsolete inventory and incur additional charges related to these commitments.
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Share sales and buybacks
On July 16, 2026, we issued 28,706 shares of our common stock to a former holder of shares of DataPelago in connection with the acquisition of DataPelago, which closed on July 16, 2026, in reliance on an exemption from the registration requirements of the Securities Act pursuant to Section 4(a)(2) thereof and/or Rule 506 of Regulation D promulgated thereunder.
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Other information
On August 28, 2026, the Company entered into Change of Control Severance Agreements (the Change of Control Agreements) with George Kurian, Cesar Cernuda, Syam Nair, Beth O’Callahan and Wissam Jabre. The Change of Control Agreements amend and replace the prior Change of Control Severance Agreements between the Company and each such executive officer.
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The Change of Control Agreements provide certain payments and benefits in the event of a termination of the executive's employment by the Company without “Cause” or by the executive for “Good Reason” within the twenty-four-month period following a “Change of Control” (as those terms are defined in the Change of Control Agreements). In such event, the executive would be entitled to receive (i) a lump sum payment equal to 150% (or, in the case of the Chief Executive Officer, 200%) of the executive's annual base salary plus the applicable percentage of the executive’s target annual bonus, based on the greater of the rate in effect immediately prior to termination or immediately prior to the Change of Control; (ii) a pro-rated lump sum payment equal to the greater of the executive's target annual bonus or the bonus based on actual performance accrued at the time of termination; (iii) accelerated vesting of the executive’s outstanding equity awards with performance-based equity awards vesting at target unless the award agreement provides otherwise; and (iv) Company-paid COBRA continuation coverage for up to 18 months (or, in the case of the Chief Executive Officer, 24 months) following termination.
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The payments and benefits under each Change of Control Agreement are contingent on the executive signing and not revoking a release of claims.
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The foregoing description of the Change of Control Agreements is qualified in its entirety by reference to the full text of the form of Change of Control Severance Agreement, which is filed as Exhibit 10.1 to this Quarterly Report on Form 10-Q and incorporated by reference herein.
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The 10-Q's risk factors against the 10-K
Item 1A of the 10-Q filed Sep 2, 2026 against Item 1A of the 10-K filed Jun 5, 2026.
A 10-Q repeats only the risks that changed, so a 10-K paragraph that is missing from it is not counted as removed.
Added is a paragraph with nothing like it in the 10-K, Reworded a sentence that is in both with several words changed,
Quiet changes a sentence in both where one to four words changed and one is a hedge or a modal
(cut words struck through, new words highlighted and underlined).
Text on the page, not a score; each links to the filing at sec.gov.
Added10-Q 2026-09-02 vs 10-K 2026-06-05
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 2026 Annual Report on Form 10-K, which could adversely affect our business, financial condition, results of operations, cash flows, and the trading price of our common and capital stock. Except to the extent updated below or to the extent additional factual information disclosed elsewhere in this Quarterly Report on Form 10-Q relates to such risk factors (including, without limitation, the matters discussed in Part I, Item 2, "Management's Discussion and Analysis of Financial Conditions and Results of Operations), there have been no material changes to the Company’s risk factors since our 2026 Annual Report on Form 10-K.
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Added10-Q 2026-09-02 vs 10-K 2026-06-05
A significant portion of our reported purchase commitments consists of firm, non-cancelable, and unconditional commitments with contract manufacturers and component suppliers. These commitments may require us to purchase materials and components at prices established in advance of delivery. If market prices for such materials or components decline, we could be obligated to acquire inventory at costs that exceed prevailing market prices, which could adversely affect our gross margins, inventory valuations, operating results, cash flows, and competitiveness. In addition, if demand for our products is lower than anticipated, we may experience excess or obsolete inventory and incur additional charges related to these commitments.
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Reworded10-Q 2026-09-02 vs 10-K 2026-06-05
We often incur expenses before receiving related benefits, benefits and it may be difficult to reduce expenses quickly if demand declines. make purchase commitments based on forecasted demand.
Read it in the 10-Q at sec.gov ↗ · The 10-K sentence ↗
Reworded10-Q 2026-09-02 vs 10-K 2026-06-05
Reducing these fixed costs quickly and purchase commitments quickly, or at all, can be challenging, and if our revenue falls below expectations, our operating results could be adversely impacted.
Read it in the 10-Q at sec.gov ↗ · The 10-K sentence ↗
