good everyone. you, afternoon, and George, Thank
very in macro what soft a be solid IT a was spend. quarter QX to continues with environment challenging
and Our our relentless met gross execution and consolidated record-setting profitability EPS. consistent exceeded operating across product and measures ranges gross that results margin, drove non-GAAP and margin, margin delivered focus guidance
through Before financial me I you for quarter. let key the the themes into the get walk details,
otherwise reminder, non-GAAP all are numbers a As discussed unless noted.
a drove profitability high. margins with to disciplined Our innovative customers our and solutions are operational modern, resonating record management
in As we expect year. solutions to fiscal we growth ahead, the revenue look unwavering second of and industry-leading the and focus profitability our drive half
by were operating margins gross at consolidated the all-time gross margin and high. all-time and drove leverage an Gross high, XX% of margins record also an and of product XX%, EPS XX% investments of driven QX of margins strategic returns at record our on $X.XX.
million share QX During repurchases, stockholders the approximately through 'XX. X% returned versus to cash quarter, we share $XXX count and dividends by reducing
least we the to year, return cash of stockholders. Over expect to XXX% of flow at the free course
and full net working operating to we improvements, our income capital relatively year the profitability Given the for track cash full flow growth, year. normalize line with in and for expect
second and quarter deliver solid expect revenue discipline continued execution half year. year-over-year operational and in to growth outperformed our we of focus efficiencies, second the the the and to our Due
fiscal measures result, As we a for year guidance are 'XX. all raising our
Now of XXX and decreased of to Adjusting points, environment. X% $X.X year-over-year revenue the quarter. year-over-year, of X% year-over-year budgets billion billings and details the challenging respectively. basis remain XX% macro billion tailwind IT $X.X in decreased revenue as and for QX the decreased a constrained FX of X% would billings have
revenue product X% year-over-year revenue $XXX decreased million of and billion Cloud year-over-year. decreased $X.X XX% Hybrid of
'XX. the quarter, most from revenue of backlog half benefited 'XX product year of last elevated levels discussed first year As fiscal notably, revenue fiscal and entering
to our be 'XX second the to Support base million. and install the year of indicative year-over-year For should more half $XXX value grew of our apples-to-apples. attach comparisons of an X% year-over-year revenue, products, fiscal
momentum implemented start We of year our our are and portfolio fiscal initiatives with of at go-to-market pleased the 'XX. the product
and Public Cloud $XXX from million QX year-over-year X% flat revenue was relatively increased to 'XX.
by continued subscription year-over-year As growth offset noted, George services. partially marketplace by first-party hyperscaler in services, was and declines driven
XX%, NAND. shift component higher Now and year-over-year and stemming gross one, favorable to purchase points strategic results. main increased mix Number margin a benefited lower cost-sensitive, XX%. products; basis and pricing points for COGS Product higher in costs to factors: XXX for from price gross basis consolidated margin number a margin gross operating number competitive agreements our margin discipline year-over-year QX our product capacity environment. three, two, from increased X,XXX X to
clear transactions want there drove that or the margin I to onetime this results. point: on were unusual higher no gross very product be
largely prior make pressure from pricing we rising commitments in margin future prices out lock NAND and NAND as in in discussed to QX. calls, As mitigate we in strategic to continue the bottomed prices purchase
year-over-year higher Within will million growth. quarter-over-quarter. we long-term $X opportunity reallocate were investments relatively $XXX to million areas flat to of continue expenses a envelope, to and consistent Operating OpEx drive grew of
to of points and the our unwavering basis In record which business year-over-year focus demonstrate basis results year-over-year margin FX which XXX QX, XX includes operating FX X% tailwind. These $X.XX, and includes to relevance strength execution. tailwind. product of increased grew EPS XX%, $X.XX model, a points
DSO payments. was were As expected, and QX by impacted million operating inventory cash flow lower turns XX $XXX tax was and of collections seasonally XX. repatriation
More the in cash decline same $XX importantly, grew up operating XX% year-over-year ago. cash of to flow flow compared period $XXX year-to-date at in year-over-year. million, a came bringing the million year-to-date X% Free a to XX% amount $XXX million, of year
the million quarter, and approximately with During returned quarter the through ending cash. share we net stockholders cash million repurchases to $XXX dividends, $XXX in
remains multiyear subscription support and the Our slight of healthy. was investments. in balance short-term the $X.X approximately The revenue Total ended driven and decline as year-over-year public billion. cash cloud end We of lower deferred $X billings. is quarter sheet with billion QX by
to Now turning guidance.
our we a soft operational 'XX environment. of in IT consistent spending improvements, raising execution still the our product guidance success on portfolio Given fiscal and are
our X% approximately from expect revenues down now be year We year-over-year, an guidance. improvement fiscal 'XX previous to
We we expect work subscription services product and through Public strength hyperscale marketplace to and Cloud headwinds first-party as services. from minor see or continued in
Consolidated gross approximately to margins be are XX%. expected
to half, continued our margin gross mix maintain pricing to to the product between into we all-flash For current by range to second flexibility. driven account environment and XX% the products XX% and shift pricing taking commitment expect
$X.XX in of share million expected of of income Operating XX% be margin and assumption the EPS of be to is to $X.XX to approximately XXX $XX count and net with interest approximately the range million.
although net quarterly Operating on variance will be cash working move to flow capital. some based expected in income, there line with is
which an billion, the increase In at between QX, billion of range to X% revenue midpoint $X.XX $X.XX we year-over-year. expect implies and
to gross XX%, roughly margin $X.XX be be EPS We to approximately be in $X.XX. to margins operating consolidated of to the XX%. is QX expected expect and range
help I closing, in and customers manage thank customers, elements I the and control to our to commitment and in NetApp. journeys. to digital investors in cloud our want our key confident for focus steadfast their again employees our and In achieve investment ability their remain once successfully priorities
are Our portfolio aligned for priority IT well sustainable, and is long-term delivering to our investments, stockholders. committed we value to
open to now Kris to Q&A. I'll the Kris? over turn the call
