NetApp (NTAP) AI Stock Analysis

NetApp

(BMV:NTAP)

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Positive Factors

AI and All-Flash Share GainsRapid all-flash growth and reported customer standardization for mission-critical AI workloads indicate strengthening product relevance and competitive positioning. If production AI deployments continue expanding, NetApp can deepen account penetration and sustain demand for higher-value infrastructure over several quarters.

Negative Factors

Elevated Financial LeverageAlthough leverage has improved from prior years, debt remains high relative to the equity base and increases sensitivity to earnings variability. The relatively small equity cushion can constrain financial flexibility and make capital allocation more exposed if operating performance weakens.

NetApp (NTAP) vs. SPDR S&P 500 ETF (SPY)

Market Cap: MXN 39.12B
Dividend Yield: 0.96%
Average Volume (3M): 591
Price to Earnings (P/E): 27.7
Beta (1Y): -0.46
Revenue Growth: 0.99%
EPS Growth: 11.87%
Country: Mexico
Employees: 11,700
Sector: Technology
Sector Strength: 61
Industry: Computer Hardware

NetApp Business Overview & Revenue Model

Company Description

NetApp, Inc. is a technology company focused on providing cloud-centric and data-driven services that enable businesses worldwide to efficiently manage and share their information across on-premises infrastructure, private cloud setups, and public cl...

NetApp Earnings Call Summary

Earnings Call Date:Sep 01, 2026(Q1-2027)|% Change Since:29.52%|Next Earnings Date:Nov 30, 2026

Earnings Call SentimentPositive

The call was strongly positive. NetApp reported record Q1 results, broad-based demand, substantial AI and cloud momentum, strong cash generation, and materially raised fiscal-year revenue, margin, and EPS guidance. The principal challenges were higher component costs, product-mix-related gross margin pressure, lower sequential inventory turns, and some timing variability from accelerated or deferred customer purchases, but management said product-margin expectations had improved slightly versus prior guidance and expressed strong confidence in the business.

Positive Updates

Record Q1 Financial Performance

NetApp delivered a record-setting first quarter, exceeding Q1 guidance on every metric. Revenue increased 30% year-over-year to $2.03 billion, gross profit grew 29% to a record $1.43 billion, operating margin reached 31.9%, and non-GAAP EPS increased 66% year-over-year to $2.58.

Negative Updates

Gross Margin Pressure from Product Mix

Q1 gross margin was 70.6%, down 50 basis points year-over-year, driven by a greater product revenue mix. Product revenue represented 49% of total revenue compared with 42% in the same period last year.

Company Guidance

For Q2, NetApp expects revenue to be $2.1 billion, plus or minus $75 million, implying 23% year-over-year growth at the midpoint; gross margin is expected to be in the range of 67% to 68%, operating margin in the range of 30.9% to 31.9%, and earnings per share in the range of $2.54 and $2.64 with a midpoint of $2.59. For fiscal year 2027, revenue is expected to be in the range of $7.975 billion to $8.225 billion, with an $8.1 billion midpoint representing 17% year-over-year growth and an increase of $650 million compared to prior guidance; gross margin is expected to be in the range of 68.1% to 69.1%, operating margin in the range of 30.3% to 31.3%, and earnings per share in the range of $9.73 to $10.03, with a $9.88 midpoint representing 22% year-over-year growth.

NetApp Risk Analysis

NetApp disclosed 38 risk factors in its most recent earnings report. NetApp reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

0 New Risks

NetApp Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

MX:NTAP against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WDC	76Outperform	$137.04B	12.77	113.77%	0.15%	20.66%	292.80%
HPE	74Outperform	$73.13B	27.41	10.87%	1.03%	26.63%	130.65%
SMCI	73Outperform	$21.65B	9.03	25.08%	―	77.79%	104.60%
STX	73Outperform	$147.97B	32.75	245.11%	0.46%	44.37%	142.99%
DELL	70Outperform	$269.78B	24.25	-574.57%	0.57%	48.86%	152.40%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

* Technology Sector Average

Performance Comparison

MX:NTAP and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
MX:NTAP	NetApp Inc	3998.00	1887.61	89.44%
STX	Seagate Technology	644.58	395.67	158.96%
SMCI	Super Micro Computer	32.95	-14.45	-30.49%
WDC	Western Digital Corp.	366.11	214.21	141.03%
HPE	Hewlett Packard Enterprise	55.09	31.95	138.03%
DELL	Dell Technologies	424.30	271.27	177.27%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

NetApp AI Stock Analysis