NetApp (NASDAQ:NTAP) Announces Quarterly Earnings Results

NetApp (NASDAQ:NTAP) released its quarterly earnings data on Thursday. The data storage provider reported $2.03 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.27 by ($0.24), Zacks reports. NetApp had a return on equity of 126.01% and a net margin of 18.43%.The company had revenue of $1.95 billion for the quarter, compared to analyst estimates of $1.87 billion. During the same quarter in the prior year, the company earned $1.93 earnings per share. The business’s revenue was up 12.5% compared to the same quarter last year. NetApp updated its FY 2027 guidance to 8.700-9.000 EPS and its Q1 2027 guidance to 2.050-2.150 EPS.

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

• NetApp posted record FY 2026 results, with record revenue, gross profit, operating income, operating cash flow, and free cash flow. Management said the company achieved its full-year 30% operating margin target and generated strong demand across AI and cloud.
• Q4 outperformed expectations, with revenue of $1.95 billion and EPS of $2.43, both above the high end of guidance. The company also delivered a 32% operating margin and all-time record quarterly operating income.
• AI demand was a major growth driver, with about 500 AI and data preparation wins in Q4 and over 1,100 for the full year. Management said AI opportunities are broad-based across on-prem, neo-cloud, and sovereign cloud customers, and that enterprise AI adoption is accelerating.
• Cloud, all-flash, and Keystone all hit new highs, with public cloud revenue up 18% in FY 2026 ex-Spot, all-flash revenue up 11%, and Keystone revenue up about 65%. Management said these businesses are expanding NetApp’s addressable market and supporting future growth.
• FY 2027 guidance calls for faster top-line growth, with revenue expected to rise to $7.325 billion-$7.575 billion, implying 8% growth at the midpoint. NetApp also guided to EPS of $8.70-$9.00 and said it plans to return up to 100% of free cash flow to shareholders.

NetApp Stock Performance

Shares of NASDAQ:NTAP opened at $174.29 on Friday. NetApp has a twelve month low of $93.69 and a twelve month high of $192.83. The firm has a market cap of $34.39 billion, a PE ratio of 27.40, a price-to-earnings-growth ratio of 2.60 and a beta of 1.28. The company has a debt-to-equity ratio of 2.15, a quick ratio of 1.36 and a current ratio of 1.39. The business has a fifty day moving average of $112.46 and a 200-day moving average of $107.95.

NetApp Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, July 29th. Stockholders of record on Friday, July 10th will be paid a $0.52 dividend. The ex-dividend date is Friday, July 10th. This represents a $2.08 dividend on an annualized basis and a dividend yield of 1.2%. NetApp’s dividend payout ratio (DPR) is 32.70%.

Wall Street Analysts Forecast Growth

Several research analysts have issued reports on NTAP shares. Wedbush increased their price objective on NetApp from $115.00 to $150.00 and gave the stock a “neutral” rating in a research note on Friday. Wells Fargo & Company increased their price objective on NetApp from $115.00 to $180.00 and gave the stock an “equal weight” rating in a research note on Friday. Barclays increased their price objective on NetApp from $120.00 to $199.00 and gave the stock an “overweight” rating in a research note on Friday. Weiss Ratings lowered NetApp from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Friday, March 13th. Finally, Northland Securities increased their price objective on NetApp from $137.00 to $171.00 and gave the stock an “outperform” rating in a research note on Friday. Four analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, NetApp currently has a consensus rating of “Hold” and an average target price of $157.50.

Key NetApp News

Here are the key news stories impacting NetApp this week:

• Positive Sentiment: NetApp reported fiscal Q4 revenue of $1.95 billion, topping estimates and rising 12.5% year over year, while non-GAAP EPS came in at $2.43, also above expectations. NetApp Q4 Earnings and Revenues Top Estimates
• Positive Sentiment: Management issued FY2027 guidance above Wall Street estimates, pointing to revenue of about $7.3 billion-$7.6 billion and EPS of $8.70-$9.00, which supports optimism for continued growth and margin expansion. Why NetApp Stock Soared 35% Friday Morning
• Positive Sentiment: Analysts sharply lifted price targets after the report, including JPMorgan, Bank of America, Citigroup, Wedbush, Susquehanna, Northland, and Wells Fargo, signaling that the earnings beat may lead to higher estimates even if several firms kept neutral or hold-type ratings. Analyst price target updates
• Positive Sentiment: NetApp also announced a quarterly dividend and a new $1 billion share repurchase program, adding to shareholder returns and potentially supporting the stock. NetApp Announces New $1 Billion Share Repurchase Program

Insiders Place Their Bets

In other news, EVP Elizabeth M. O’callahan sold 1,000 shares of the firm’s stock in a transaction on Monday, May 11th. The stock was sold at an average price of $117.73, for a total value of $117,730.00. Following the completion of the sale, the executive vice president directly owned 18,382 shares in the company, valued at approximately $2,164,112.86. This trade represents a 5.16% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, CAO Lorenzo Daniel De sold 275 shares of the firm’s stock in a transaction on Monday, May 18th. The shares were sold at an average price of $120.00, for a total value of $33,000.00. Following the completion of the sale, the chief accounting officer owned 1,090 shares of the company’s stock, valued at approximately $130,800. This trade represents a 20.15% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 3,275 shares of company stock valued at $347,650. 0.28% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On NetApp

Hedge funds have recently added to or reduced their stakes in the company. Transamerica Financial Advisors LLC boosted its holdings in shares of NetApp by 16.8% in the fourth 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 period. Voleon Capital Management LP boosted its stake in NetApp by 3.9% during the third quarter. Voleon Capital Management LP now owns 3,849 shares of the data storage provider’s stock valued at $456,000 after buying an additional 143 shares during the period. Hilltop Holdings Inc. boosted its stake in NetApp by 3.5% during the third quarter. Hilltop Holdings Inc. now owns 5,404 shares of the data storage provider’s stock valued at $640,000 after buying an additional 184 shares during the period. Zions Bancorporation National Association UT boosted its stake 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 valued at $41,000 after buying an additional 192 shares during the period. Finally, Coldstream Capital Management Inc. boosted 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 valued at $512,000 after buying an additional 199 shares during the period. Institutional investors own 92.17% of the company’s stock.

About NetApp

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.