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NetApp
(NASDAQ:NTAP)
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Rating:74Outperform
Price Target:
$243.00
▲(29.93% Upside)
Action:Reiterated
Date:09/15/26
NTAP scores well primarily on strong earnings-call momentum (record quarter and meaningfully raised revenue/margin/EPS guidance) and solid underlying profitability and free-cash-flow generation. The score is tempered by leverage and recent FCF softness, mixed near-term technical signals, and a valuation that is not particularly cheap for a modest dividend yield.
Positive Factors
AI and All-Flash Growth
Rapid all-flash growth and customer standardization for mission-critical AI workloads indicate strengthening competitive relevance in an expanding infrastructure category. Increasing production use of NetApp’s platform can support durable share gains, larger deployments, and follow-on demand.
Negative Factors
Elevated Leverage
Although leverage has improved from prior peaks, debt remains high relative to the equity base and increases sensitivity to earnings volatility. Interest and refinancing obligations can constrain capital allocation, reduce flexibility during weaker demand, and amplify downside risk versus conservatively financed peers.
Read all positive and negative factors
Positive Factors
Negative Factors
AI and All-Flash Growth
Rapid all-flash growth and customer standardization for mission-critical AI workloads indicate strengthening competitive relevance in an expanding infrastructure category. Increasing production use of NetApp’s platform can support durable share gains, larger deployments, and follow-on demand.
Read all positive factors
NetApp Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyNetApp (NTAP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$42.66B
Dividend Yield0.96%
Average Volume (3M)2.52M
Price to Earnings (P/E)30.3
Beta (1Y)1.49
Revenue Growth12.15%
EPS Growth24.60%
CountryUS
Employees11,700
SectorTechnology
Sector Strength88
IndustryComputer Hardware
Share Statistics
EPS (TTM)7.18
Shares Outstanding196,419,000
10 Day Avg. Volume2,404,409
30 Day Avg. Volume2,522,860
Financial Highlights & Ratios
PEG Ratio1.58
Price to Book (P/B)15.85
Price to Sales (P/S)3.09
P/FCF Ratio11.46
Enterprise Value/Market Cap0.81
Enterprise Value/Revenue4.69
Enterprise Value/Gross Profit6.64
Enterprise Value/Ebitda16.14
Forecast
1Y Price Target
$213.53Price Target Upside14.18% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering17
EPS Forecast (FY)10
Revenue Forecast (FY)$8.18B
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...
How the Company Makes Money
NetApp makes money primarily by selling and supporting enterprise storage and data management solutions, with revenue typically coming from a mix of product, subscription, and services streams. A major portion of revenue is generated from storage ...
NetApp Earnings Call Summary
Earnings Call Date:Sep 02, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Dec 01, 2026
Earnings Call Sentiment Positive
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.
Read all updates
Q1-2027 Updates
Positive
Negative
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.
Read all positive updates
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 Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
62
Positive
Cash Flow
73
Positive
| Breakdown | TTM | Apr 2026 | Apr 2025 | Apr 2024 | Apr 2023 | Apr 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.39B | 6.92B | 6.57B | 6.27B | 6.36B | 6.32B |
| Gross Profit | 5.22B | 4.90B | 4.61B | 4.43B | 4.21B | 4.22B |
| EBITDA | 2.15B | 1.93B | 1.69B | 1.58B | 1.38B | 1.36B |
| Net Income | 1.42B | 1.28B | 1.19B | 986.00M | 1.27B | 937.00M |
Balance Sheet | ||||||
| Total Assets | 10.96B | 10.74B | 10.82B | 9.89B | 9.82B | 10.03B |
| Cash, Cash Equivalents and Short-Term Investments | 3.58B | 3.58B | 3.85B | 3.25B | 3.07B | 4.13B |
| Total Debt | 2.53B | 2.73B | 3.49B | 2.65B | 2.68B | 2.94B |
| Total Liabilities | 9.46B | 9.39B | 9.78B | 8.74B | 8.66B | 9.19B |
| Stockholders Equity | 1.50B | 1.35B | 1.04B | 1.15B | 1.16B | 838.00M |
Cash Flow | ||||||
| Free Cash Flow | 1.65B | 1.87B | 1.34B | 1.53B | 868.00M | 985.00M |
| Operating Cash Flow | 1.90B | 2.07B | 1.51B | 1.69B | 1.11B | 1.21B |
| Investing Cash Flow | -1.09B | -595.00M | 147.00M | -735.00M | -1.39B | -561.00M |
| Financing Cash Flow | -1.31B | -2.15B | -828.00M | -1.34B | -1.51B | -1.02B |
NetApp Technical Analysis
Neutral
187.02
Price Trends
202.85
Positive
185.64
Positive
146.03
Positive
Market Momentum
3.62
Positive
50.02
Neutral
27.86
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NTAP, the sentiment is Neutral. The current price of 187.02 is below the 20-day moving average (MA) of 219.17, below the 50-day MA of 202.85, and above the 200-day MA of 146.03, indicating a neutral trend. The MACD of 3.62 indicates Positive momentum. The RSI at 50.02 is Neutral, neither overbought nor oversold. The STOCH value of 27.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NTAP.
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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $42.66B | 30.25 | 113.67% | 0.96% | 12.15% | 24.60% | |
74 Outperform | $141.69B | 13.94 | 112.34% | 0.15% | -2.71% | 407.72% | |
74 Outperform | $77.22B | 28.95 | 10.87% | 0.98% | 26.63% | 130.65% | |
73 Outperform | $293.47B | 27.79 | -574.57% | 0.50% | 48.86% | 152.40% | |
70 Outperform | $153.52B | 47.93 | 348.17% | 0.43% | 34.06% | 108.45% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | $23.37B | 9.75 | 25.08% | ― | 77.79% | 104.60% |
* Technology Sector Average
NTAP
NetApp
212.51
96.51
83.19%
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HPE
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NetApp Corporate Events
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and ComplianceShareholder Meetings
NetApp Shareholders Approve Governance Changes and Board Slate
Positive
Sep 11, 2026
At its recent annual meeting, NetApp stockholders re-elected all director nominees, including CEO George Kurian and nine other board members, each to serve until the next annual meeting. The voting results showed broad support for the board slate,...
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.