NetApp Inc (NTAP)
NASDAQ:NTAP
Want to see NTAP full AI Analyst Report?
Top Page
NetApp
(NASDAQ:NTAP)
Select Model
Select Model
Rating:75Outperform
Price Target:
$196.00
▲(87.51% Upside)
Action:Reiterated
Date:05/30/26
NTAP scores well on fundamentals and outlook, driven by strong margins, accelerating revenue, and exceptional free-cash-flow generation alongside constructive FY27 guidance and shareholder-return commitments. The score is moderated by leverage-related balance-sheet risk, an overbought technical setup (RSI/Stoch), and a less compelling valuation (P/E ~26.9 with a modest ~1.19% yield).
Positive Factors
Exceptional free cash flow generation
Very strong and growing free cash flow provides durable financial flexibility: funds sustained capex, product investment, debt reduction, and sizable shareholder returns. High FCF conversion (~90% of net income) also signals earnings quality and resilience through IT spending cycles.
Negative Factors
Elevated leverage and thin equity base
Material leverage and a modest equity cushion amplify earnings volatility and constrain strategic optionality. If component costs or deal timing pressure margins, high leverage raises refinancing and interest risks and limits buffer for M&A or cyclical downturns over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Exceptional free cash flow generation
Very strong and growing free cash flow provides durable financial flexibility: funds sustained capex, product investment, debt reduction, and sizable shareholder returns. High FCF conversion (~90% of net income) also signals earnings quality and resilience through IT spending cycles.
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
$34.66B
Dividend Yield1.89%
Average Volume (3M)3.40M
Price to Earnings (P/E)28.0
Beta (1Y)1.40
Revenue Growth5.28%
EPS Growth10.66%
CountryUS
Employees11,800
SectorTechnology
Sector Strength88
IndustryComputer Hardware
Share Statistics
EPS (TTM)8.10
Shares Outstanding197,330,400
10 Day Avg. Volume5,726,022
30 Day Avg. Volume3,399,126
Financial Highlights & Ratios
PEG Ratio1.57
Price to Book (P/B)15.85
Price to Sales (P/S)3.09
P/FCF Ratio11.46
Enterprise Value/Market Cap0.96
Enterprise Value/Revenue3.86
Enterprise Value/Gross Profit5.49
Enterprise Value/Ebitda14.10
Forecast
1Y Price Target
$169.00Price Target Upside61.68% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
EPS Forecast (FY)8.85
Revenue Forecast (FY)$7.45B
NetApp Business Overview & Revenue Model
Company Description
NetApp, Inc. provides cloud-led and data-centric services to manage and share data on-premises, and private and public clouds worldwide. It operates in two segments, Hybrid Cloud and Public Could. The company offers intelligent data management sof...
How the Company Makes Money
NetApp makes money primarily by selling and supporting enterprise storage and data management solutions. Its revenue model is centered on (1) product revenue from storage hardware systems (notably all-flash arrays and related infrastructure) and a...
NetApp Earnings Call Summary
Earnings Call Date:May 28, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Sep 02, 2026
Earnings Call Sentiment Positive
The call communicated a strong, constructive performance: record revenue, margins, EPS, and cash flow, driven by cloud, all-flash, Keystone, and accelerating AI-related demand. Management acknowledged component cost pressures and inventory changes, provided prudent margin guidance for FY27, and did not quantify AI revenue contribution. On balance the positives — clear revenue and profitability acceleration, robust cash generation, strong cloud/all-flash/Keystone growth, and meaningful AI deal momentum — outweigh the near-term margin and supply uncertainties, suggesting confidence in durable demand and disciplined financial management.Positive Updates
Record Revenue and Quarterly Strength
Q4 revenue was $1.95B, up 12% year-over-year and 14% sequentially; FY 2026 revenue was $6.93B, up 5% year-over-year (7% excluding the Spot divestiture). Q4 exceeded the high end of revenue guidance.
Negative Updates
Component Cost Pressure Impacting Product Margins
Management cited rising memory and component costs (DRAM, NAND) as a key headwind; product gross margin remains pressured. Guidance implies product gross margin trough in Q1 with gradual improvement thereafter, and full-year gross margin guide of 68.5%–69.5% (below FY26's 71.3%).
Read all updates
Q4-2026 Updates
Positive
Negative
Record Revenue and Quarterly Strength
Q4 revenue was $1.95B, up 12% year-over-year and 14% sequentially; FY 2026 revenue was $6.93B, up 5% year-over-year (7% excluding the Spot divestiture). Q4 exceeded the high end of revenue guidance.
Read all positive updates
Company Guidance
NetApp guided fiscal 2027 revenue of $7.325–$7.575 billion (midpoint $7.45B, +8% YoY) with gross margin 68.5%–69.5%, operating margin 29.1%–30.1%, an effective tax rate of 20%–21%, and EPS $8.70–$9.00 (midpoint $8.85, +9% YoY); the company said it intends to return up to 100% of free cash flow to shareholders and to reduce share count by low single‑digit percentage points year over year. For Q1 (which includes an extra week expected to add ~$65M of revenue and ~$21M of operating expenses) it sees revenue of $1.75–$1.90B (midpoint $1.825B, +17% YoY), gross margin 69.1%–70.1%, operating margin 28.4%–29.4%, and EPS $2.05–$2.15 (midpoint $2.10).NetApp Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
62
Positive
Cash Flow
86
Very Positive
| Breakdown | Apr 2026 | Apr 2025 | Apr 2024 | Apr 2023 | Apr 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 6.92B | 6.57B | 6.27B | 6.36B | 6.32B |
| Gross Profit | 4.90B | 4.61B | 4.43B | 4.21B | 4.22B |
| EBITDA | 1.90B | 1.69B | 1.58B | 1.43B | 1.36B |
| Net Income | 1.28B | 1.19B | 986.00M | 1.27B | 937.00M |
Balance Sheet | |||||
| Total Assets | 10.74B | 10.82B | 9.89B | 9.82B | 10.03B |
| Cash, Cash Equivalents and Short-Term Investments | 3.58B | 3.85B | 3.25B | 3.07B | 4.13B |
| Total Debt | 2.49B | 3.49B | 2.65B | 2.68B | 2.94B |
| Total Liabilities | 9.39B | 9.78B | 8.74B | 8.66B | 9.19B |
| Stockholders Equity | 1.35B | 1.04B | 1.15B | 1.16B | 838.00M |
Cash Flow | |||||
| Free Cash Flow | 1.87B | 1.34B | 1.53B | 868.00M | 985.00M |
| Operating Cash Flow | 2.07B | 1.51B | 1.69B | 1.11B | 1.21B |
| Investing Cash Flow | -595.00M | 147.00M | -735.00M | -1.39B | -561.00M |
| Financing Cash Flow | -2.15B | -828.00M | -1.34B | -1.51B | -1.02B |
NetApp Technical Analysis
Positive
104.53
Price Trends
116.61
Positive
108.47
Positive
111.10
Positive
Market Momentum
16.94
Negative
87.80
Negative
81.17
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NTAP, the sentiment is Positive. The current price of 104.53 is below the 20-day moving average (MA) of 134.67, below the 50-day MA of 116.61, and below the 200-day MA of 111.10, indicating a bullish trend. The MACD of 16.94 indicates Negative momentum. The RSI at 87.80 is Negative, neither overbought nor oversold. The STOCH value of 81.17 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NTAP.
NetApp Risk Analysis
NetApp disclosed 39 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 |
|---|---|---|---|---|---|---|---|
82 Outperform | $194.09B | 31.60 | 91.94% | 0.18% | -18.43% | 242.76% | |
75 Outperform | $34.66B | 27.96 | 114.18% | 1.89% | 5.28% | 10.66% | |
75 Outperform | $207.77B | 87.42 | 916.38% | 1.02% | 28.92% | 55.56% | |
65 Neutral | $24.96B | 9.40 | -473.44% | 5.09% | 7.20% | 4.12% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $30.17B | 22.73 | 18.21% | ― | 56.58% | 1.94% |
* Technology Sector Average
NTAP
NetApp
178.87
76.26
74.31%
HPQ
HP
26.30
2.79
11.87%
STX
Seagate Tech
925.99
799.92
634.48%
SMCI
Super Micro Computer
46.90
6.13
15.04%
WDC
Western Digital
575.50
520.59
947.98%
NetApp Corporate Events
Business Operations and StrategyStock BuybackFinancial Disclosures
NetApp Announces New $1 Billion Share Repurchase Program
Positive
May 28, 2026
On May 21, 2026, NetApp’s board authorized a new share repurchase program of up to $1.0 billion of common stock with no expiration date, adding to its ongoing capital return strategy and giving management flexibility to adjust buybacks based...
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.