NetApp (NASDAQ:NTAP) Releases Earnings Results, Beats Expectations By $0.05 EPS

NetApp (NASDAQ:NTAP) posted its earnings results on Thursday. The data storage provider reported $2.12 EPS for the quarter, beating analysts’ consensus estimates of $2.07 by $0.05, FiscalAI reports. The firm had revenue of $1.71 billion for the quarter, compared to analysts’ expectations of $1.70 billion. NetApp had a return on equity of 122.76% and a net margin of 18.07%.The company’s quarterly revenue was up 4.4% on a year-over-year basis. During the same period last year, the firm earned $1.91 EPS. NetApp updated its Q4 2026 guidance to 2.210-2.310 EPS and its FY 2026 guidance to 7.920-8.020 EPS.

Here are the key takeaways from NetApp’s conference call:

• Q3 revenue of $1.71 billion (up 4% YoY; 6% ex‑Spot) and record operating income with non‑GAAP EPS of $2.12, reflecting strong execution and operational discipline.
• Early momentum in AI: AFX began shipments with notable wins (neoclouds, financial services, semiconductor) and the AI Data Engine engaged ~300 customers, with AIDE slated for general availability in Q4.
• All‑Flash Array revenue hit a record $1.0 billion (up 11% YoY) while Keystone (storage‑as‑a‑service) grew ~65% YoY and public cloud services (ex‑Spot) rose 17% YoY with very high gross margins.
• Rising memory/NAND prices are pressuring product gross margins; NetApp has raised prices, may raise again, and noted mix‑ and market‑purchase impacts that weighed on product margin sequentially.
• Guidance: Q4 revenue of $1.87 billion ±$75M (midpoint +8% YoY) and FY26 revenue midpoint $6.847 billion (+4% YoY) with gross margin guidance around 70–71% and FY EPS of $7.92–$8.02.

NetApp Price Performance

NTAP stock traded down $0.11 during mid-day trading on Friday, reaching $99.03. The company’s stock had a trading volume of 5,113,746 shares, compared to its average volume of 2,374,097. The stock has a market cap of $19.61 billion, a PE ratio of 16.56, a P/E/G ratio of 3.44 and a beta of 1.38. The company has a current ratio of 1.34, a quick ratio of 1.30 and a debt-to-equity ratio of 2.52. NetApp has a fifty-two week low of $71.84 and a fifty-two week high of $126.66. The company’s 50 day moving average is $103.14 and its two-hundred day moving average is $111.27.

NetApp Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 22nd. Investors of record on Friday, April 3rd will be paid a dividend of $0.52 per share. This represents a $2.08 annualized dividend and a yield of 2.1%. The ex-dividend date of this dividend is Thursday, April 2nd. NetApp’s dividend payout ratio is currently 36.17%.

NetApp News Summary

Here are the key news stories impacting NetApp this week:

• Positive Sentiment: Q3 earnings beat and healthy top‑line: NetApp reported $2.12 EPS vs. $2.07 expected and $1.71B revenue (vs. $1.70B est.), with revenue up ~4.4% year/year — headlines credit AI‑ready infrastructure and strong all‑flash demand for the upside. NetApp Q3 Earnings Beat on Healthy Top-Line Growth
• Positive Sentiment: Raised guidance: Management bumped FY‑2026 EPS guidance to $7.92–8.02 (well above street) and Q4 EPS to $2.21–2.31, signaling confidence in AI and cloud momentum — a primary driver of upbeat market reactions. NetApp surges on earnings beat and raised guidance
• Positive Sentiment: Dividend boost: NetApp declared a $0.52 quarterly dividend (annualized yield ~2.1%), with record/ex‑dividend dates set — supports the income case and signals capital‑allocation discipline.
• Neutral Sentiment: Forward revenue target: Management outlined an ~8% Q4 revenue growth target and highlighted accelerating AI/cloud subscription demand — positive if achieved, but forward guidance carries execution risk. NetApp outlines 8% Q4 revenue growth target
• Neutral Sentiment: Call details and metrics: Conference call, slide deck and transcripts provide detail on margin drivers, product mix (all‑flash, AI infra, cloud subs) and customer traction — useful for modeling but not an immediate directional catalyst. NetApp Q3 2026 Earnings Call Highlights Q3 Earnings Call Transcript
• Negative Sentiment: Strategic/valuation questions: Analysts and pieces are probing whether NetApp’s push toward AI‑focused cloud subscriptions materially changes its margin profile and valuation — that uncertainty may cap near‑term multiple expansion despite the beat. Is NetApp’s Shift Toward AI-Focused Cloud Subscriptions Altering The Investment Case?

Analyst Upgrades and Downgrades

Several brokerages have recently weighed in on NTAP. Northland Securities set a $137.00 target price on NetApp and gave the stock an “outperform” rating in a research note on Wednesday, November 26th. Barclays boosted their price target on shares of NetApp from $125.00 to $134.00 and gave the stock an “overweight” rating in a report on Wednesday, November 26th. Bank of America increased their price objective on shares of NetApp from $125.00 to $129.00 and gave the company a “neutral” rating in a report on Wednesday, November 26th. The Goldman Sachs Group assumed coverage on shares of NetApp in a research note on Tuesday, January 13th. They set a “buy” rating and a $128.00 target price for the company. Finally, UBS Group raised their price target on shares of NetApp from $114.00 to $120.00 and gave the company a “neutral” rating in a research note on Wednesday, November 26th. One analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and nine have given a Hold rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $122.69.

Insider Buying and Selling at NetApp

In other news, EVP Elizabeth M. O’callahan sold 1,000 shares of the company’s stock in a transaction that occurred on Tuesday, February 10th. The stock was sold at an average price of $103.45, for a total value of $103,450.00. Following the completion of the sale, the executive vice president directly owned 20,075 shares in the company, valued at $2,076,758.75. This represents a 4.74% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 0.28% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On NetApp

Institutional investors have recently added to or reduced their stakes in the stock. Transamerica Financial Advisors LLC increased its stake in shares of NetApp by 16.8% in the 4th quarter. Transamerica Financial Advisors LLC now owns 833 shares of the data storage provider’s stock worth $89,000 after acquiring an additional 120 shares during the last quarter. Voleon Capital Management LP grew its holdings in shares of NetApp by 3.9% in the third quarter. Voleon Capital Management LP now owns 3,849 shares of the data storage provider’s stock valued at $456,000 after purchasing an additional 143 shares during the period. Hilltop Holdings Inc. grew its holdings in shares of NetApp by 3.5% in the third quarter. Hilltop Holdings Inc. now owns 5,404 shares of the data storage provider’s stock valued at $640,000 after purchasing an additional 184 shares during the period. Zions Bancorporation National Association UT increased its position in NetApp by 99.5% during the fourth quarter. Zions Bancorporation National Association UT now owns 385 shares of the data storage provider’s stock worth $41,000 after purchasing an additional 192 shares during the last quarter. Finally, Coldstream Capital Management Inc. raised its stake in NetApp by 4.8% during the third quarter. Coldstream Capital Management Inc. now owns 4,320 shares of the data storage provider’s stock worth $512,000 after purchasing an additional 199 shares during the period. Hedge funds and other institutional investors own 92.17% of the company’s stock.

NetApp Company Profile

NetApp, Inc (NASDAQ: NTAP) is a data management and storage company that delivers hybrid cloud data services for applications and data. Founded in 1992 as Network Appliance and rebranded as NetApp in 2008, the company is headquartered in Sunnyvale, California. NetApp’s offering focuses on enabling organizations to store, manage, protect and move data across on-premises environments and major public clouds.

The company’s product portfolio centers on the ONTAP data management software and a range of storage systems and services built around it.