NetApp (NASDAQ:NTAP) Issues Q2 2027 Earnings Guidance

NetApp (NASDAQ:NTAP) updated its second quarter 2027 earnings guidance on Wednesday. The company provided earnings per share guidance of 2.540-2.640 for the period, compared to the consensus estimate of 2.080. The company issued revenue guidance of $2.0 billion-$2.2 billion, compared to the consensus revenue estimate of $1.8 billion. NetApp also updated its FY 2027 guidance to 9.730-10.030 EPS.

Analyst Ratings Changes

Several analysts have recently commented on NTAP shares. Wall Street Zen downgraded shares of NetApp from a “strong-buy” rating to a “buy” rating in a report on Wednesday, July 29th. Bank of America boosted their target price on shares of NetApp from $180.00 to $206.00 and gave the company a “neutral” rating in a research report on Monday. Barclays upped their price target on shares of NetApp from $199.00 to $219.00 and gave the company an “overweight” rating in a report on Thursday. The Goldman Sachs Group reiterated a “buy” rating and set a $210.00 price objective on shares of NetApp in a research note on Thursday. Finally, Argus boosted their price objective on NetApp from $130.00 to $200.00 and gave the company a “buy” rating in a report on Monday, June 1st. Six investment analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Hold” and an average price target of $192.07.

NetApp Price Performance

Shares of NetApp stock opened at $185.38 on Friday. The firm has a market cap of $36.38 billion, a PE ratio of 26.15, a P/E/G ratio of 2.46 and a beta of 1.44. NetApp has a twelve month low of $93.69 and a twelve month high of $209.06. The company has a quick ratio of 1.39, a current ratio of 1.44 and a debt-to-equity ratio of 1.84. The business has a 50-day moving average price of $178.07 and a 200 day moving average price of $140.54.

NetApp (NASDAQ:NTAP) last issued its quarterly earnings results on Wednesday, September 2nd. The data storage provider reported $2.58 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.12 by $0.46. NetApp had a return on equity of 127.57% and a net margin of 19.18%.The company had revenue of $2.02 billion for the quarter, compared to the consensus estimate of $1.84 billion. During the same quarter in the prior year, the business posted $1.15 earnings per share. NetApp’s revenue for the quarter was up 29.9% on a year-over-year basis. NetApp has set its FY 2027 guidance at 9.730-10.030 EPS and its Q2 2027 guidance at 2.540-2.640 EPS. Sell-side analysts predict that NetApp will post 7.34 earnings per share for the current fiscal year.

NetApp Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, October 28th. Investors of record on Friday, October 9th will be paid a $0.52 dividend. The ex-dividend date of this dividend is Friday, October 9th. This represents a $2.08 dividend on an annualized basis and a yield of 1.1%. NetApp’s dividend payout ratio (DPR) is currently 32.70%.

Insider Activity

In other NetApp news, EVP Elizabeth O’Callahan sold 1,000 shares of the business’s stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $193.82, for a total transaction of $193,820.00. Following the completion of the sale, the executive vice president directly owned 30,297 shares in the company, valued at approximately $5,872,164.54. The trade was a 3.20% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, President Cesar Cernuda sold 2,608 shares of the stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $204.48, for a total value of $533,283.84. Following the transaction, the president directly owned 46,530 shares of the company’s stock, valued at $9,514,454.40. The trade was a 5.31% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 55,072 shares of company stock worth $8,719,520. 0.36% of the stock is currently owned by insiders.

NetApp News Summary

Here are the key news stories impacting NetApp this week:

• Positive Sentiment: NetApp reported record fiscal Q1 revenue of approximately $2.03 billion, up nearly 30% year over year, while adjusted EPS of $2.58 exceeded the roughly $2.12 analyst consensus. All-flash array revenue rose 47% to $1.31 billion, and public-cloud revenue increased 28% to $206 million. NetApp Q1 Earnings and Revenues Top Estimates on AI and All-Flash Strength
• Positive Sentiment: Management raised fiscal 2027 guidance to approximately $7.98 billion-$8.23 billion in revenue and $9.73-$10.03 in adjusted EPS, above consensus expectations. Second-quarter guidance also topped estimates, reflecting confidence in AI-related infrastructure upgrades, hybrid-cloud demand and flash storage adoption. NetApp Raises Fiscal 2027 Forecast
• Positive Sentiment: NetApp and Amazon Web Services expanded AWS Transform support for Amazon FSx for NetApp ONTAP, simplifying enterprise storage and database migrations. NetApp also announced ONTAP validation for VMware Cloud Foundation 9.1, strengthening its private- and hybrid-cloud positioning. NetApp and AWS Accelerate Storage Migrations
• Positive Sentiment: Analyst sentiment remains supportive in places: TD Cowen reaffirmed a Buy rating with a $200 target, while Morgan Stanley raised its target to $191 and Susquehanna lifted its target to $195. Goldman Sachs also maintained a $210 target and Buy view. NetApp Analysts Boost Forecasts
• Neutral Sentiment: NetApp declared a quarterly dividend of $0.52 per share, payable October 28 to shareholders of record October 9. The dividend provides ongoing shareholder returns but is unlikely to be the primary trading catalyst. NetApp Declares Dividend
• Negative Sentiment: The initial post-earnings selloff reflected weaker cash conversion and profitability concerns. Operating cash flow was $503 million and free cash flow was $401 million, while gross margin declined and management warned that second-quarter gross margin would fall sequentially as product mix and component costs pressure results. NetApp Tumbles on Free Cash Flow Decline
• Negative Sentiment: Analyst views are mixed at the stock’s elevated valuation. Citigroup cut its target to $190 and retained Neutral, while Wedbush raised its target to $170 but kept Neutral—below the recent trading level. This limits the potential upside perceived by more cautious investors.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Sivia Capital Partners LLC acquired a new stake in NetApp in the 2nd quarter valued at approximately $315,000. Atlas Capital Advisors Inc. acquired a new position in NetApp during the 4th quarter worth $86,000. Transamerica Financial Advisors LLC increased its holdings in NetApp by 16.8% during the 4th quarter. Transamerica Financial Advisors LLC now owns 833 shares of the data storage provider’s stock worth $89,000 after purchasing an additional 120 shares during the period. Litman Gregory Wealth Management LLC acquired a new position in shares of NetApp during the fourth quarter worth about $194,000. Finally, HM Payson & Co. increased its stake in shares of NetApp by 235.1% during the fourth quarter. HM Payson & Co. now owns 640 shares of the data storage provider’s stock worth $69,000 after buying an additional 449 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.