Track market-moving stories before they get noisy

Key Takeaways NTAP's $1.1 billion net cash position and $401 million in quarterly free cash flow support its AI expansion.Acquisitions of DataPelago & JetStream, with the planned PEAK:AIO buyout, strengthen NTAP's AI capabilities.NetApp raised its fiscal 2027 revenue outlook to $7.975B-$8.225B, while integration risks remain a concern.
NetApp’s (NTAP - Free Report) soild balance sheet and healthy cash generation provide ample financial flexibility to boost its AI investments. The company ended the first quarter of fiscal 2027 with $3.6 billion in cash, cash equivalents and investments against $2.5 billion in gross outstanding debt, resulting in a net cash position of $1.1 billion.

This financial strength positions NetApp to pursue strategic M&A and product innovation to capitalize on increasing demand for AI infrastructure while maintaining flexibility to support shareholder returns.

NetApp generated $503 million in operating cash flow and $401 million in free cash flow during the fiscal first quarter. The company also returned $302 million to its shareholders, comprising $200 million in share repurchases and $102 million in dividends in the fiscal first quarter.

The strong top-line performance further supports its investment capacity. Fiscal first-quarter revenues increased 30% year over year to $2.03 billion, while non-GAAP operating income grew 61% to $645 million.

For fiscal 2027, revenues are now forecasted at $7.975-$8.225 billion, with the $8.10 billion midpoint representing 17% growth and a $650 million increase from prior guidance.  

M&A Strengthens AI CapabilitiesNetApp is strategically deploying capital to expand its AI capabilities. The company acquired DataPelago, which specializes in AI data infrastructure.  The deal expands NetApp's intelligent data infrastructure portfolio by bringing GPU-accelerated data processing directly to the storage layer.

The subsequent JetStream acquisition strengthened its cloud-native disaster recovery and migration capabilities, particularly for VMware environments.

NetApp recently announced its intention to acquire PEAK:AIO. The deal focuses on a key challenge for large AI clusters – enabling thousands of GPUs to access huge amounts of data and metadata quickly and efficiently. The proposed combination of PEAK:AIO’s metadata architecture and parallel file-system technology with NetApp’s ONTAP platform could give the company a pathway toward supporting AI environments containing trillions of files and multi-exabyte datasets.

Though acquisitions add capabilities, they also increase integration and intangible-asset exposure. Goodwill and purchased intangible assets increased to $2.95 billion as of July 31, 2026, from $2.79 billion as of April 24, and represented about 27% of total assets.

NetApp's substantial liquidity provides a solid foundation for its AI expansion strategy, but effective integration of acquisitions and sustained cash generation will remain integral to translating these investments into long-term growth amid intense competition.

Cash Profile for CompetitorsEverpure (P - Free Report) , formerly Pure Storage, is one of the closest competitors to NetApp. The company is strengthening its AI infrastructure portfolio through innovation and strategic M&A. In May 2026, it completed the acquisition of 1touch, which specializes in data intelligence and orchestration.

P generated $1.19 billion in second-quarter fiscal 2027 revenues, up 38% year over year. The company ended the quarter with more than $1 billion in cash and investments. However, Everpure reported negative operating cash flow of $136 million and negative free cash flow of $238 million in the quarter, primarily reflecting strategic component purchases to secure supply. Management expects fiscal 2027 free cash flow of $600-$800 million. In September, Everpure reaffirmed its fiscal 2027 revenue outlook of $5.03-$5.07 billion and provided a preliminary fiscal 2028 revenue outlook of $7-$7.3 billion.

International Business Machines (IBM - Free Report) is also pursuing strategic M&A to expand its AI capabilities. Its acquisition of Confluent (March 2026) strengthened its real-time data streaming capabilities, supporting enterprise AI applications. In August 2026, IBM completed the acquisition of HRL Laboratories to accelerate the quantum computing roadmap, reflecting its broader investment in next-generation technologies.

IBM's acquisition-led transformation has increased balance sheet complexity. Total debt was $62 billion at the end of the second quarter of 2026, while cash, restricted cash and marketable securities fell to $8.2 billion from $14.5 billion at year-end 2025, partly due to the Confluent acquisition. Goodwill increased to $74.6 billion. Although IBM generated $4.8 billion of free cash flow in the first half of 2026, elevated leverage can limit flexibility for dividends, acquisitions and other growth investments.

NTAP Price Performance, Valuation and EstimatesNTAP’s shares have gained 27.1% in the past month against the Computer Storage Devices industry’s decline of 2%

Image Source: Zacks Investment Research

The stock is trading at a 12-month forward price/sales ratio of 22.79X, considerably higher than 9.63X for the industry.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for NTAP’s current year earnings has been revised upward over the past 60 days.

Image Source: Zacks Investment Research

NTAP currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Key Takeaways NetApp shares surged 147.2% in six months, outperforming the industry, driven by strong business momentum.AI demand and all-flash growth fueled NTAP's 30% revenue growth to $2.03 billion in the Q1'FY27.NTAP's 27.23X forward P/E and rising component costs raise concerns despite strong earnings growth. NetApp, Inc.’s (NTAP - Free Report) shares have surged 147.2% in the past six months, outperforming the Zacks Computer & Technology sector and the Zacks Computer- Storage Devices industry, which gained 28.2% and 59.2%, respectively. The S&P 500 composite is up 15.9% over the same time frame.

The company faces stiff competition from its peers such as Super Micro Computer, Inc. (SMCI - Free Report) , Hewlett Packard Enterprise Company (HPE - Free Report) and Seagate Technology Holdings plc (STX - Free Report) . SMCI, HPE and STX have climbed 93.6%, 191.9% and 61.5%, respectively, in the past six months.

Image Source: Zacks Investment Research

Let us take a closer look at NTAP’s fundamentals, key growth drivers, competitive strengths and potential risks to determine whether the stock remains an attractive investment.

Strong Demand and Broad-Based Business MomentumNetApp is benefiting from robust demand for intelligent data infrastructure, supported by increasing investments in AI, cloud adoption and enterprise modernization. The company's unified data platform, which combines high-performance storage, data management and cyber resilience capabilities, is strengthening its competitive position across diverse industries. NetApp reported revenues of $2.03 billion in the first quarter of fiscal 2027, representing 30% year-over-year growth, or 26% excluding the additional week.

The company witnessed strong demand across customer segments, geographies and workloads, supported by new customer additions, expansion within existing accounts and technology refresh activities. Increasing adoption of its solutions for mission-critical workloads, along with multiyear customer agreements, is expected to sustain growth momentum. Reflecting this strength, NetApp raised its fiscal 2027 revenue guidance to $7.96-$8.26 billion, indicating confidence in its business prospects.

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Growing Adoption of All-Flash and Hybrid Storage SolutionsNetApp is benefiting from increasing demand for its all-flash array portfolio as enterprises prioritize storage infrastructure capable of supporting high-performance applications and AI-intensive workloads. In the first quarter of fiscal 2027, all-flash array revenues surged 47% year over year to $1.31 billion, driven by the growing adoption of low-latency, scalable and cyber-resilient storage solutions. The company is witnessing increased traction for its unified storage architecture as customers seek to consolidate workloads, improve operational efficiency and optimize infrastructure spending.

Demand for hybrid-flash solutions is also strengthening, particularly among customers looking to balance performance requirements with cost-effective capacity expansion. NetApp's ability to address diverse customer needs through its broad storage portfolio is supporting competitive wins and expanding its presence in enterprise infrastructure.

AI-Led Modernization Expands Growth OpportunitiesThe accelerating adoption of AI is creating significant opportunities for NetApp as enterprises modernize their data infrastructure to support advanced analytics, AI inference and GPU-intensive applications. The company's platform enables customers to access and process data in place, reducing data movement while maintaining security, governance and operational control. In the first quarter of fiscal 2027, NetApp secured approximately 350 AI and data lake modernization deals, with deal sizes increasing as customers transitioned from pilot projects to production environments. Notable customer wins included Samsung Electronics, a public-sector organization deploying NetApp AFX with NVIDIA SuperPOD, and an Asian neocloud provider developing AI inference services.

The acquisition of DataPelago further strengthens NetApp's AI capabilities by enabling high-performance, in-place data processing. Recently, the company partnered with Diskover Data to extend metadata discovery and governance capabilities across ONTAP and StorageGRID environments. The collaboration is expected to enhance data visibility and management for enterprises handling large volumes of unstructured data, further strengthening NetApp's position in AI-ready infrastructure.

Public Cloud Expansion and Strategic PartnershipsNetApp's public cloud business continues to benefit from enterprise cloud migrations and growing demand for scalable, secure and efficient storage services. Public Cloud revenues increased 28% year over year to $206 million in the first quarter of fiscal 2027, reflecting strong adoption of first-party and marketplace storage offerings. Excluding the additional week, revenues grew 19%. Solutions such as Amazon FSx for NetApp ONTAP and Azure NetApp Files are gaining traction as organizations migrate VMware workloads and modernize applications. The acquisition of JetStream further enhances NetApp's cloud capabilities by strengthening disaster recovery and migration solutions for VMware environments.

Recently, NetApp announced an expanded collaboration with Oracle to bring native ONTAP data management capabilities to Oracle Cloud Infrastructure through a fully managed storage service. The company also unveiled plans to deepen its partnership with SAP to support secure and resilient cloud storage. Additionally, its collaboration with Supermicro aims to deliver integrated AI infrastructure solutions that reduce data bottlenecks and improve GPU utilization. These initiatives are expected to expand NetApp's reach across hybrid-cloud and AI infrastructure markets.

Keystone Momentum and Product InnovationNetApp is witnessing growing adoption of its Keystone storage-as-a-service offering as enterprises increasingly favor flexible consumption models over traditional infrastructure purchases. Keystone revenues increased approximately 65% in fiscal 2026, highlighting sustained customer demand for cloud-like storage consumption. In the first quarter of fiscal 2027, Professional Services revenues increased 15% year over year to $112 million, primarily benefiting from continued Keystone expansion. The company is focusing on attracting new customers and enhancing the offering's capabilities to support broader adoption.

Recently, NetApp introduced Keystone Sovereign, targeting qualified customers in Germany and France with additional regional, operational and data-handling controls designed to address data sovereignty requirements. At its INSIGHT 2026 event, NetApp unveiled Novus, a high-performance file system designed to support GPU-intensive workloads. These developments are expected to strengthen the company's competitive position in regulated industries, AI infrastructure and flexible storage services.

Improving Profitability and Financial FlexibilityNetApp's disciplined operating model and expanding revenue base are supporting profitability and cash flow generation. In the first quarter of fiscal 2027, non-GAAP gross profit increased 29% year over year to $1.43 billion, while operating income surged 61% to $645 million. Non-GAAP operating margin expanded 610 basis points (bps) to 31.9%, reflecting strong operating leverage and effective expense management. Non-GAAP earnings per share increased 66% year over year to $2.58, outpacing revenue growth. The company generated $503 million in operating cash flow and $401 million in free cash flow during the quarter.

NetApp also returned $302 million to shareholders through dividends and share repurchases. Its solid liquidity position, supported by $3.6 billion in cash and short-term investments against $2.5 billion in gross debt, provides financial flexibility to pursue strategic investments and growth initiatives. Backed by encouraging business momentum, NetApp raised its fiscal 2027 non-GAAP earnings guidance to $9.73-$10.03 per share, reinforcing its focus on profitable growth and shareholder returns.

Margin Pressures and Rising Component Costs Remain ConcernsDespite strong business momentum, NetApp faces challenges from rising component costs, an evolving revenue mix and potential fluctuations in customer purchasing patterns. In the first quarter of fiscal 2027, non-GAAP gross margin contracted 50 bps year over year to 70.6%, primarily due to a higher contribution from lower-margin product revenues. Product gross margin declined 150 bps sequentially to 54.6%, reflecting increased component costs, partially offset by favorable pricing. Management expects gross margin to decline sequentially to 67-68% in the second quarter, mainly due to a greater product revenue mix.

Elevated component prices could continue to pressure profitability, despite the company's pricing initiatives and supply management efforts. Moreover, some customers are postponing lower-priority projects or shifting toward hybrid-flash solutions to manage infrastructure spending. The acceleration of certain purchases into the first quarter could also create variability in future demand patterns, while higher inventory levels and continued investments in AI solutions may add to operating complexities. These factors could weigh on NetApp's near-term margin performance despite the favorable long-term demand environment.

NTAP’s ValuationNTAP trades at a forward 12-month price-to-earnings (P/E) of 27.23X, above the industry’s 10.11X. SMCI, HPE and STX trade at a forward 12-month P/E of 10.11X, 17.09X and 19.32X, respectively.

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The premium valuation is justified to an extent by the company’s strong growth trajectory, improving profitability, robust demand for its cloud and AI solutions, and favorable long-term growth prospects.

NTAP’s Estimates Revised UpwardThe Zacks Consensus Estimate for NTAP’s earnings for fiscal 2026 has been revised upward over the past 30 days.

Image Source: Zacks Investment Research

The upward estimate revision reflects improving analyst sentiment and indicates growing confidence in NetApp’s earnings prospects.

What Should You Do With NTAP Stock Now?NetApp’s AI-driven demand, strong all-flash storage growth, expanding cloud business and robust cash generation strengthen its long-term growth prospects. However, its premium valuation and margin pressures warrant some caution.

Existing investors may stay invested to benefit from the company’s growth prospects, while new investors can consider buying the stock given its strong fundamentals and favorable earnings outlook.

Currently, NetApp sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

It has been about a month since the last earnings report for NetApp (NTAP - Free Report) . Shares have added about 16% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is NetApp due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for NetApp, Inc. before we dive into how investors and analysts have reacted as of late.

NetApp Q1 Earnings Beat Estimates

NetApp delivered a record first quarter of fiscal 2027, with non-GAAP earnings of $2.58 per share, up 66.5% year over year. The figure beat the Zacks Consensus Estimate of $2.13 by 21.1%.

Net revenues rose 29.9% to $2,025 million and surpassed the $1,843 million consensus mark by 9.9%. Strong AI and modernization spending, accelerated purchases and pricing benefits supported growth. Billings increased 36.1% to $2,057 million.

Hybrid Cloud Business Leads Growth

Hybrid Cloud revenues advanced 30.1% year over year to $1,819 million. Product revenues climbed 50.9% to $987 million, while support revenues increased 11.3% to $720 million. Professional and Other Services revenues rose 15.5% to $112 million, mainly on continued Keystone growth.

The quarter included an additional week, which contributed approximately $65 million to revenues, mainly from support and Public Cloud. Excluding that benefit, total revenues increased 26% year over year. Management also cited a healthier demand environment as customers invested in AI and infrastructure modernization.

Flash and Public Cloud Momentum Accelerates

All-flash array revenues reached a record $1,309 million, up 46.6% from the prior-year quarter. Hybrid-flash and other revenues were $510 million versus $505 million a year ago. Together, all-flash and Public Cloud represented 75% of quarterly net revenues.

Public Cloud revenues grew 28% to a record $206 million, reflecting strong first-party and marketplace storage demand. Adjusted for the extra week, Public Cloud growth was 19%. NetApp won approximately 350 AI and data lake modernization deals, with management noting larger deal sizes as customers moved from pilots to production. The company also acquired DataPelago to expand its AI data infrastructure capabilities.

Margin Details

Non-GAAP gross margin was 70.6%, down 50 basis points year over year. The decline reflected a larger product mix, with product revenues accounting for 49% of sales versus 42% a year earlier. Product gross margin was 54.6%, pressured sequentially by higher component costs but partly offset by better pricing.

Hybrid Cloud gross margin was 68.8%, while Public Cloud gross margin reached 86.4%. Support gross margin totaled 93.2%, and Professional Services gross margin was 36.6%. Year-over-year margin expansion across product, support, Professional Services and Public Cloud partly offset the product-mix headwind.

Non-GAAP operating expenses rose 10.9% year over year to $784 million, driven primarily by variable compensation and the additional week, which added approximately $22 million. Even so, non-GAAP operating income increased 60.8% to $645 million.

The non-GAAP operating margin expanded to 31.9% from 25.7%. Non-GAAP net income increased 64% to $515 million. On a GAAP basis, net income rose 60.9% to $375 million, while earnings increased 63.5% to $1.88 per share.

Cash Flow Details

Cash from operations fell 25.3% year over year to $503 million, while free cash flow declined 35.3% to $401 million. Free cash flow margin was 19.8% compared with 39.8% a year ago. Capital expenditures increased to $102 million from $53 million.

NTAP ended the quarter with $3.58 billion in cash, cash equivalents and investments and $2.49 billion in gross debt, leaving net cash of $1.09 billion. Inventory increased to $375 million from $198 million at fiscal year-end as the company managed supply levels to support growing demand. NetApp returned $302 million through $200 million of repurchases and $102 million of dividends.

Fiscal 2027 Outlook

For the second quarter of fiscal 2027, NetApp expects revenues of $2.025-$2.175 billion. Non-GAAP gross margin is projected at 67-68%, operating margin at 30.9-31.9% and earnings at $2.54-$2.64 per share. Management expects the sequential gross-margin decline mainly from a higher product revenue mix.

For fiscal 2027, revenues are now forecast at $7.975-$8.225 billion, with the $8.10 billion midpoint representing 17% growth and a $650 million increase from prior guidance. Non-GAAP gross margin is expected at 68.1-69.1%, operating margin at 30.3-31.3% and earnings at $9.73-$10.03 per share. The $9.88 earnings midpoint represents 22% year-over-year growth.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates revision.

The consensus estimate has shifted 21.27% due to these changes.

VGM ScoresCurrently, NetApp has a subpar Growth Score of D, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a score of F on the value side, putting it in the bottom 20% quintile for value investors.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise NetApp has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.

Key Takeaways NetApp is positioning Keystone Sovereign for qualified customers in Germany and France.Keystone revenue grew about 65% in fiscal 2026 as customers sought flexible storage consumption.NetApp unveiled Novus and expanded Oracle Cloud support at INSIGHT 2026. For organizations operating in regulated industries, sovereignty increasingly encompasses who can access data, where support teams are located, how telemetry moves and which legal and operational controls govern the infrastructure. NetApp, Inc. (NTAP - Free Report) is positioning Keystone Sovereign to address this broader requirement, initially targeting qualified customers in Germany and France, with additional European countries planned. Per NetApp, the offering will provide additional regional, operational, support and data-handling controls intended to help qualified European customers keep critical data and support within specified geographic boundaries.

Keystone is NetApp's storage-as-a-service offering, allowing organizations to consume storage infrastructure through a flexible, cloud-like model instead of depending on traditional hardware purchasing and deployment. Keystone continues to gain traction as customers seek flexible consumption, with revenue growing about 65% in fiscal 2026. In first-quarter fiscal 2027, Professional Services revenues rose 15.5% to $112 million, mainly driven by continued Keystone growth. Management said Keystone grew in roughly the same range as in prior quarters and the overall flash business, while benefiting minimally from the extra week. It is targeting more new customers and adding capabilities to support continued adoption.

NetApp’s INSIGHT 2026 conference, held yesterday, highlighted the company’s strategy around AI-ready data infrastructure, unified storage, hybrid cloud and cyber resilience. The event focused on helping enterprises manage and activate data for AI workloads, with NetApp emphasizing its intelligent data infrastructure platform and partnerships across the AI ecosystem. Besides the Keystone offering, other key announcements included NetApp Novus, a high-performance file system designed to feed data to GPUs, and native ONTAP storage support for Oracle Cloud Infrastructure, expanding its hyperscaler footprint.

The event also highlighted its expanding partnership ecosystem, with collaborations spanning SAP, Oracle (ORCL - Free Report) and Super Micro Computer (SMCI - Free Report) .

NTAP’s Competitive LandscapeSMCI rides on expanding AI infrastructure demand, supported by rapid adoption of new GPU platforms, its modular Building Block architecture, liquid-cooling expertise and a broader DCBBS offering. Supermicro’s Open Storage Summit 2026, held in August, focused on the data infrastructure needed to deploy enterprise AI at scale. The event brought together Supermicro and ecosystem partners, including AMD, DDN, IBM, Intel, KIOXIA, MinIO, Nutanix, VAST Data and Western Digital, to discuss AI inference, agentic AI, hybrid-cloud storage, context memory and unstructured data management. The summit also highlighted Supermicro’s DCBBS architecture, which provides modular, validated AI infrastructure from servers and networking to rack- and data-center-level solutions.

Hewlett Packard Enterprise (HPE - Free Report) is benefiting from a broader shift toward AI infrastructure, networking modernization and hybrid cloud, with Juniper expanding its addressable market and integration synergies supporting earnings growth. In September, HPE expanded its collaboration with Oracle to deploy HPE Juniper Networking across Oracle’s global AI data centers, supporting the company’s gigawatt-scale AI infrastructure expansion with networking services and financing capabilities. In June, it announced multiple AI infrastructure innovations, including a sovereign private AI cloud deployment for Siemens Energy, expanded self-driving networking capabilities and new AI Factory and Private Cloud AI solutions to help enterprises securely deploy and manage agentic AI workloads.

NTAP Price Performance, Valuation & EstimatesNetApp shares have gained 76.5% in the past year compared with the Computer-Storage Devices industry’s rise of 318.4%.

Image Source: Zacks Investment Research

Regarding the price/book ratio, NTAP is trading at 27.48, higher than the industry’s multiple of 15.36.

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The Zacks Consensus Estimate for NTAP’s earnings for fiscal 2027 has been revised upward over the past 60 days.

Image Source: Zacks Investment Research

NTAP currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

SAN JOSE, Calif.--(BUSINESS WIRE)--NetApp® (NASDAQ: NTAP), the Intelligent Data Infrastructure company, today announced new capabilities that enable enterprises to accelerate their adoption of agentic AI with secure, in-place, zero-copy data activation. The heterogeneous metadata capability of NetApp AI Data Engine (AIDE) helps organizations discover, understand, govern, and operationalize data where it lives, while an expanded integration with Commvault connects the NetApp Platform with Commvault recovery orchestration workflow to help customers detect attacks earlier and recover cleaner data faster.

As AI agents move from experimentation into production, enterprise data infrastructure has become a critical business dependency. Agents can read, retrieve, and act on data at machine speed, but most enterprise data estates were built for human-paced workflows: fragmented across file, object, cloud, on-premises, and sovereign environments; governed through inconsistent controls; and activated through pipelines that copy, move, and transform data before it can be used. That traditional approach creates latency, cost, compliance risk, and answers that may already be stale by the time they reach a model or agent.

“The agentic enterprise will be defined by how quickly and safely organizations can turn their data into intelligence,” said Asad Khan, Senior Vice President and General Manager, AI at NetApp. “For too long, AI initiatives have depended on complex pipelines that move data away from where it is created, governed, and protected. NetApp is taking a different approach: activating data in place with the governance, resiliency, and openness enterprises require. With AI Data Engine and our expanded work with Commvault, we are helping customers give agents trusted business context while strengthening the recovery foundation AI-driven operations depend on.”

These latest NetApp Platform updates help customers move beyond copy-first AI architectures and toward a governed, protected, zero-copy operating model for enterprise data. Key updates include:

NetApp AI Data Engine is a core intelligence service within the NetApp Platform’s AI Data Services layer, helping organizations transform fragmented, unstructured enterprise data into trusted, AI-ready assets for analytics, assistants, and AI agents. With the new update, NetApp is expanding the availability of metadata discovery across the full enterprise data estate, including NetApp ONTAP®, StorageGRID®, and non-NetApp storage. These capabilities help customers discover and understand data in place across NFS, SMB, and S3 repositories, immediately enabling them to uncover data, reduce security risk, optimize storage, accelerate data migrations, and identify AI-ready data. NetApp is also previewing upcoming AIDE innovations, including expanded AI-powered data understanding capabilities, deeper governance intelligence, open analytics integrations with analytics engines such as Starburst and Onehouse.AI, and new agentic services designed to help enterprises securely turn data into actionable AI context at scale. Expanded NetApp and Commvault Joint Solution enables customers to protect and restore the data they use for AI workloads. Powered by the NetApp Platform, the solution delivers near-real-time threat detection, deeper scans that uncover evasive threats, cleanroom validation with advanced AI threat detection technology in an isolated environment, and advanced clean recovery, all from the Commvault console. It connects the NetApp Platform's autonomous ransomware protection signals on primary storage directly to Commvault recovery workflows to enable joint customers to recover in minutes rather than days or weeks without introducing reinfection. Together, these updates advance the NetApp Platform as the data foundation for the agentic enterprise. Rather than treating AI readiness as a separate data-copy project or a closed, single-vendor stack, NetApp enables enterprises to activate existing data in place while preserving the access controls, data protection, and operational choice already in place. This approach helps customers deliver near-term storage and governance outcomes while building toward richer AI-ready data capabilities, including semantic search, knowledge graphs, decision context, and agentic activation.

“As AI-driven threats compress response times, organizations need a faster path to trusted recovery,” said Pranay Ahlawat, Chief Technology and AI Officer at Commvault. “By integrating NetApp’s ransomware detection and immutable data protection with Commvault’s clean recovery capabilities, we help customers accelerate response, restore trusted data with confidence, and reduce mean time to clean recover (MTCR).”

“Agentic AI raises the bar for enterprise data infrastructure, because agents need access to current, trusted, and governed data rather than another copy of yesterday's dataset,” said Shari Lava, GVP of AI Research at IDC. “NetApp's approach is a useful example of this shift: connecting data discovery, understanding, governance, activation, and cyber resilience at the storage layer, where much of the enterprise data estate already resides. Vendors that can do this well give customers a more pragmatic path to prepare data for AI, without the risk, cost, and complexity that often come with large-scale data movement.”

Statements by NetApp about unreleased offerings and future plans are for informational purposes only, are subject to change without notice, and should not be relied upon for purchasing or other decisions. Such statements do not constitute a commitment, obligation, guarantee, or warranty of any kind by NetApp, including about availability, functionality, pricing, or timing.

Additional Resources

Trusted Agents Start with Trusted Data AI Data Engine: Make Distributed Enterprise Data Agent-Ready in Place Commvault: Together, NetApp and Commvault Provide Customers with a Coordinated Path to Bounce Back From Ransomware Attacks by Delivering Fast, Clean, and Trusted Recovery About NetApp

For more than three decades, NetApp has helped the world’s leading organizations navigate change – from the rise of enterprise storage to the intelligent era defined by data and AI. Today, NetApp is the Intelligent Data Infrastructure company, helping customers turn data into a catalyst for innovation, resilience, and growth.

At the heart of that infrastructure is the NetApp data platform – the unified, enterprise-grade, intelligent foundation that connects, protects, and activates data across every cloud, workload, and environment. Built on the proven power of NetApp ONTAP, our leading data management software and OS, and enhanced by automation through the AI Data Engine and AFX, it delivers observability, resilience, and intelligence at scale.

Disaggregated by design, the NetApp data platform separates storage, services, and control so enterprises can modernize faster, scale efficiently, and innovate without lock-in. As the only enterprise storage platform natively embedded in the world’s largest clouds, it gives organizations the freedom to run any workload anywhere with consistent performance, governance, and protection.

With NetApp, data is always ready – ready to defend against threats, ready to power AI, and ready to drive the next breakthrough. That’s why the world’s most forward-thinking enterprises trust NetApp to turn intelligence into advantage.

Learn more at www.netapp.com or follow us on X, LinkedIn, Facebook, and Instagram.

NETAPP, the NETAPP logo, and the marks listed at www.netapp.com/TM are trademarks of NetApp, Inc. Other company and product names may be trademarks of their respective owners.

Joint solution combines compute and data infrastructure to optimize GPUs at scale

SAN JOSE, Calif.--(BUSINESS WIRE)--NetApp® (NASDAQ: NTAP), the Intelligent Data Infrastructure company, today announced a strategic collaboration with Supermicro to deliver jointly validated AI infrastructure solutions spanning large-scale AI factories, enterprise deployments, neoclouds, and sovereign AI initiatives. By combining Supermicro's AI-optimized compute and rack-scale systems with the NetApp Platform, the companies will help customers accelerate deployment, improve GPU utilization, strengthen data governance, and reduce operational complexity.

NetApp and Supermicro are creating a full-stack foundation for AI that extends beyond high-performance storage. The collaboration brings together Supermicro’s rack-scale compute, networking, power, and liquid-cooling expertise with the NetApp Platform’s unified data management, cyber resilience, hybrid-cloud leadership, and disaggregated scale. Customers gain an architecture that can be deployed quickly, evolve across generations of compute, and deliver a consistent data experience from enterprise environments to the world’s largest AI factories. Because the compute and data infrastructure are tested and validated as a unified system, customers can shorten design and integration cycles, reduce deployment risk, and move AI environments into production faster.

“Customers need AI infrastructure that drives innovation and transformation, delivers world-class economics, and works seamlessly at scale from day one,” said Alvaro Celis, Senior Vice President, Chief Commercial, Partner and Ecosystem Officer at NetApp. “By combining Supermicro’s AI leadership and ability to scale with the NetApp Platform, we can give customers—from commercial, enterprise to internet-with the most demanding requirements—secure, reliable AI solutions they can deploy quickly to accelerate innovation and build market leadership.”

The collaboration will make it faster and easier for customers to build Intelligent Data Infrastructure powered by the NetApp Platform in demanding AI factory environments. By pairing AI-optimized compute with AI-ready data services, NetApp and Supermicro will deliver jointly validated solutions organized around three core capabilities:

Integrated AI Solutions at Scale: Supermicro's AI-optimized servers, GPU platforms, and rack-scale systems combine with the NetApp Platform to deliver a validated solution for AI deployments ranging from individual enterprise AI projects to full AI factories, gigafactories, and sovereign AI initiatives. Enterprise-Grade Data Management, Security, and Sovereignty: The joint solutions are expected to deliver the governance, cyber resilience, and compliance that enterprises, governments, neoclouds, and GPU-as-a-service providers require, so customers can scale AI while keeping maintaining strong governance and control over their data. Maximized AI Investment ROI Through AI-Ready Data: The collaboration removes data bottlenecks to keep GPUs supplied with high-performance access to data for training, inference, and retrieval-augmented generation. Customers will spend less time waiting on data and instead spend more time training models. The collaboration also enables customers to scale compute and data independently as workload needs change, improving infrastructure efficiency and preserving flexibility across the AI lifecycle. Customers adopting the joint solution will be able to securely access and manage data across on-premises and cloud environments, bringing AI infrastructure to the data while maintaining consistent governance and protection.

“Supermicro and NetApp have collaborated to offer AI-optimized, rack-scale infrastructure with intelligent data infrastructure built for governance, cyber resilience, sovereignty, and hybrid cloud flexibility,” said Matthew Thauberger, Chief Revenue Officer, Supermicro. “Whether customers are deploying an enterprise AI cluster, building a neocloud, delivering GPU-as-a-service, or standing up a sovereign AI factory, this collaboration gives them a validated path where the infrastructure and the data are designed to work together from the start.”

To simplify the customer deployment and operations of NetApp Novus architecture, NetApp and Supermicro will deliver NetApp Novus Data Director software running on qualified Supermicro servers with NetApp AFF A90 systems as the high-performance ONTAP data layer. By separating the metadata and data planes, NetApp Novus enables each to scale independently within a single namespace, helping AI infrastructure providers expand performance and capacity as their environments grow without repeatedly redesigning the underlying architecture. This initial implementation is the first step in a broader collaboration to co-engineer integrated infrastructure solutions for enterprise AI, neocloud, sovereign AI, and large-scale AI factory environments.

NetApp and Supermicro are also collaborating to support enterprises building a private AI platform with NetApp AIPod with Supermicro, a NetApp-validated converged infrastructure architecture based on the NVIDIA Reference Architecture guidance. Validated as a complete system and delivered through NetApp’s ecosystem of channel partners, this solution gives enterprises proven guidance for AI training, inference, and agentic workloads from dozens to hundreds of GPUs.

Statements by NetApp about unreleased offerings and future plans are for informational purposes only, are subject to change without notice, and should not be relied upon for purchasing or other decisions. Such statements do not constitute a commitment, obligation, guarantee, or warranty of any kind by NetApp, including about availability, functionality, pricing, or timing.

Additional Resources

NetApp Novus. Keep Every GPU Fed, Productive and Ready to Scale A New Data Architecture for AI Factories at Scale NetApp Verified Architecture for Supermicro AI Factory About NetApp

For more than three decades, NetApp has helped the world’s leading organizations navigate change – from the rise of enterprise storage to the intelligent era defined by data and AI. Today, NetApp is the Intelligent Data Infrastructure company, helping customers turn data into a catalyst for innovation, resilience, and growth.

At the heart of that infrastructure is the NetApp data platform – the unified, enterprise-grade, intelligent foundation that connects, protects, and activates data across every cloud, workload, and environment. Built on the proven power of NetApp ONTAP, our leading data management software and OS, and enhanced by automation through the AI Data Engine and AFX, it delivers observability, resilience, and intelligence at scale.

Disaggregated by design, the NetApp data platform separates storage, services, and control so enterprises can modernize faster, scale efficiently, and innovate without lock-in. As the only enterprise storage platform natively embedded in the world’s largest clouds, it gives organizations the freedom to run any workload anywhere with consistent performance, governance, and protection.

With NetApp, data is always ready – ready to defend against threats, ready to power AI, and ready to drive the next breakthrough. That’s why the world’s most forward-thinking enterprises trust NetApp to turn intelligence into advantage.

Learn more at www.netapp.com or follow us on X, LinkedIn, Facebook, and Instagram.

NETAPP, the NETAPP logo, and the marks listed at www.netapp.com/TM are trademarks of NetApp, Inc. Other company and product names may be trademarks of their respective owners.

Key Takeaways NetApp posted record Q1 revenue of $2.03 billion, up 30% year over year.NTAP secured roughly 350 AI and data lake modernization deals as projects moved into production.All-flash array revenue rose 47% to $1.31 billion, supporting higher fiscal 2027 guidance. NetApp, Inc. (NTAP - Free Report) entered fiscal 2027 with strong momentum, supported by growing demand across AI, flash storage and broader infrastructure modernization. The company started the year with record first-quarter revenues of $2.03 billion, up 30% year over year, as demand strengthened across customer types, geographies and workloads. On the last earnings call, management stated that the performance reflected not only accelerated purchases and pricing benefits but also a structural improvement in the underlying demand environment.

AI is becoming an increasingly important growth driver. NetApp secured roughly 350 AI and data lake modernization deals in the first quarter, with deal sizes increasing as customers moved from proof-of-concept projects to production deployments. Demand is extending beyond dedicated AI systems as enterprises modernize databases and unstructured data environments to prepare for AI inferencing and analytics. Management also noted that AI is influencing broader data-infrastructure spending, making it difficult to isolate its exact revenue contribution.

Flash demand is another major tailwind. All-flash array revenues reached $1.31 billion in the quarter, rising 47% year over year, as customers standardized on NetApp for mission-critical workloads, including GPU-intensive AI pipelines. Management expects all-flash to remain the predominant contributor to the acceleration in the business. At the same time, hybrid flash demand is strengthening as customers seek more cost-effective solutions for lower-priority workloads, adding breadth to NetApp’s storage momentum.

The strong start prompted NetApp to materially raise its fiscal 2027 expectations. Revenues are projected between $7.98 billion and $8.23 billion, with the $8.10 billion midpoint implying 17% year-over-year growth and standing $650 million above the prior guidance. The company also raised its operating margin forecast to 30.3-31.3% and EPS guidance to $9.73-$10.03, with the midpoint representing 22% growth. Overall, the raised outlook reflects management’s confidence that AI-driven modernization, robust all-flash demand and broader portfolio strength can sustain momentum through the year.

Taking a Look at NTAP's CompetitorsHewlett Packard Enterprise (HPE - Free Report) is benefiting from a broader shift toward AI infrastructure, networking modernization and hybrid cloud, with Juniper expanding its addressable market and integration synergies supporting earnings growth. Record orders and backlog show demand is ahead of shipments, while Private Cloud AI, Alletra and GreenLake deepen HPE’s exposure to software, services and recurring consumption. For fiscal 2026, HPE raised its revenue growth outlook to 34-37% and non-GAAP earnings per share guidance to $3.75-$3.85. For fiscal 2027, management raised its revenue growth framework to 13-17% and projected non-GAAP earnings-per-share growth of 16-20%.

Teradata Corporation (TDC - Free Report) is gaining from rising recurring revenue, expanding operating leverage and a strengthened balance sheet that gives the company room to fund AI innovation and shareholder returns. The Autonomous Knowledge Platform broadens its hybrid data and AI proposition, while Teradata Factory and AI Studio target regulated, sovereign and production-scale agentic AI workloads. Customer interest and early wins support the strategic shift and stronger retention over time. For the third quarter of 2026, Teradata expects revenues to decline 6% to 4% year over year, while recurring revenues are expected to decrease 4% to 2%. For 2026, Teradata reaffirmed its forecast for total ARR growth of 2-4% year over year, recurring revenue growth of flat to 2%, and total revenue performance ranging from a 2% decline to flat.

NTAP Price Performance, Valuation & EstimatesShares of NetApp have gained 29.8% in the past three months against the Computer-Storage Devices industry’s decline of 16%.

Image Source: Zacks Investment Research

Regarding the price/book ratio, NTAP is trading at 25.91, higher than the industry’s multiple of 15.37.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for NTAP’s earnings for fiscal 2027 has been revised upward over the past 60 days.

Image Source: Zacks Investment Research

NTAP currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

NetApp, Inc. (NASDAQ:NTAP – Get Free Report) CEO George Kurian sold 40,000 shares of the firm’s stock in a transaction dated Monday, September 14th. The shares were sold at an average price of $191.42, for a total value of $7,656,800.00. Following the sale, the chief executive officer directly owned 318,537 shares in the company, valued at approximately $60,974,352.54. The trade was a 11.16% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website.

NetApp Trading Up 2.8% NetApp stock opened at $196.92 on Friday. The stock has a 50-day moving average of $184.09 and a two-hundred day moving average of $146.78. The company has a debt-to-equity ratio of 1.30, a quick ratio of 1.16 and a current ratio of 1.24. NetApp, Inc. has a one year low of $93.69 and a one year high of $209.06. The stock has a market cap of $38.68 billion, a PE ratio of 27.77, a price-to-earnings-growth ratio of 2.06 and a beta of 1.44.

NetApp (NASDAQ:NTAP – Get Free Report) last issued its quarterly earnings results on Wednesday, September 2nd. The data storage provider reported $2.58 earnings per share for the quarter, topping analysts’ consensus estimates of $2.12 by $0.46. The business had revenue of $2.02 billion for the quarter, compared to analyst estimates of $1.84 billion. NetApp had a return on equity of 119.13% and a net margin of 19.18%.The company’s revenue was up 29.9% on a year-over-year basis. During the same quarter in the previous year, the firm earned $1.15 earnings per share. NetApp has set its FY 2027 guidance at 9.730-10.030 EPS and its Q2 2027 guidance at 2.540-2.640 EPS. On average, research analysts anticipate that NetApp, Inc. will post 8.32 EPS for the current fiscal year.

NetApp Dividend Announcement The company also recently announced a quarterly dividend, which will be paid on Wednesday, October 28th. Investors of record on Friday, October 9th will be issued a dividend of $0.52 per share. The ex-dividend date of this dividend is Friday, October 9th. This represents a $2.08 dividend on an annualized basis and a dividend yield of 1.1%. NetApp’s payout ratio is 29.34%. Hedge Funds Weigh In On NetApp Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Norges Bank purchased a new stake in shares of NetApp in the 4th quarter valued at approximately $458,060,000. Jefferies Financial Group Inc. acquired a new stake in NetApp in the 4th quarter valued at approximately $14,869,000. Handelsbanken Fonder AB raised its position in NetApp by 106.8% in the fourth quarter. Handelsbanken Fonder AB now owns 262,732 shares of the data storage provider’s stock valued at $28,136,000 after purchasing an additional 135,715 shares during the period. National Pension Service lifted its stake in NetApp by 13.6% during the fourth quarter. National Pension Service now owns 180,917 shares of the data storage provider’s stock worth $19,374,000 after purchasing an additional 21,643 shares in the last quarter. Finally, Swedbank AB lifted its stake in NetApp by 22.0% during the fourth quarter. Swedbank AB now owns 97,086 shares of the data storage provider’s stock worth $10,397,000 after purchasing an additional 17,520 shares in the last quarter. 92.17% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In NTAP has been the subject of a number of recent research reports. Wedbush raised their price target on shares of NetApp from $150.00 to $170.00 and gave the stock a “neutral” rating in a research report on Thursday, September 3rd. Northland Securities increased their price objective on shares of NetApp from $171.00 to $187.00 and gave the stock an “outperform” rating in a research note on Thursday, September 3rd. Barclays raised their target price on shares of NetApp from $199.00 to $219.00 and gave the stock an “overweight” rating in a report on Thursday, September 3rd. Argus set a $225.00 target price on shares of NetApp in a research report on Friday, September 11th. Finally, Morgan Stanley upped their price target on shares of NetApp from $173.00 to $191.00 and gave the company an “equal weight” rating in a report on Thursday, September 3rd. One research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and ten have issued a Hold rating to the stock. According to data from MarketBeat, NetApp currently has an average rating of “Hold” and a consensus target price of $193.86.

Check Out Our Latest Research Report on NetApp

More NetApp News Here are the key news stories impacting NetApp this week:

Positive Sentiment: NetApp’s latest earnings were well above expectations, with EPS of $2.58 versus the $2.12 consensus and revenue of approximately $2.02 billion versus estimates of $1.84 billion. Revenue increased nearly 30% year over year, and fiscal 2027 EPS guidance of $9.73 to $10.03 supports the bullish outlook. Positive Sentiment: Investors are responding favorably to management’s focus on AI-related infrastructure, cloud adoption and data-management demand. Recent analyst actions included higher price targets from Barclays and Evercore, although the broader analyst consensus remains Hold. Positive Sentiment: NetApp expanded its NFL relationship by becoming an Official Partner of the Tampa Bay Buccaneers. The partnership will showcase NetApp’s data infrastructure, analytics and cloud capabilities across the team’s operations and digital fan platforms, potentially improving enterprise brand visibility. NetApp and Tampa Bay Buccaneers Partner to Enable Data-Driven Operational Excellence Positive Sentiment: The company’s $0.52 quarterly dividend, equivalent to $2.08 annually and a yield of roughly 1.1%, provides continued shareholder income. Neutral Sentiment: Investors are evaluating whether the record quarter reflects durable growth or a pull-forward of demand from later periods. Strong guidance and AI/cloud momentum are supportive, but the stock’s valuation near 27 times earnings leaves limited room for execution misses. Did NetApp Borrow Its Record Quarter From The Rest Of The Year? Negative Sentiment: CEO George Kurian sold 40,000 shares worth about $7.7 million, while Director Deepak Ahuja sold 3,526 shares for approximately $684,000. Both retained sizable positions, so the sales are not definitive evidence of a bearish outlook, but they may create modest sentiment pressure. About NetApp (Get Free Report)

NetApp, Inc (NASDAQ: NTAP) is a data infrastructure and cloud storage company that helps organizations manage, protect and access data across on-premises environments, private clouds and public clouds. Its offerings are designed to support enterprise workloads such as databases, business applications, artificial intelligence and virtualized computing.

The company’s portfolio includes all-flash and hybrid storage systems, cloud storage services, data management software and infrastructure-as-a-service solutions.

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Engineers Gate Manager LP increased its position in NetApp, Inc. (NASDAQ:NTAP – Free Report) by 179.8% during the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 19,686 shares of the data storage provider’s stock after acquiring an additional 12,650 shares during the period. Engineers Gate Manager LP’s holdings in NetApp were worth $3,047,000 as of its most recent SEC filing.

Several other hedge funds have also recently bought and sold shares of NTAP. Park Square Financial Group LLC boosted its position in NetApp by 68.7% during the fourth quarter. Park Square Financial Group LLC now owns 253 shares of the data storage provider’s stock worth $29,000 after purchasing an additional 103 shares in the last quarter. Gen Wealth Partners Inc purchased a new position in shares of NetApp in the fourth quarter valued at $30,000. DV Equities LLC purchased a new position in shares of NetApp in the fourth quarter valued at $30,000. Roble Belko & Company Inc acquired a new position in shares of NetApp during the 1st quarter worth $31,000. Finally, Elyxium Wealth LLC acquired a new position in shares of NetApp during the 4th quarter worth $35,000. 92.17% of the stock is owned by hedge funds and other institutional investors.

Key NetApp News Here are the key news stories impacting NetApp this week:

Positive Sentiment: Zacks upgraded NetApp to “Strong Buy” from “Hold,” adding to the stock’s positive momentum and likely providing a near-term catalyst for investors. Positive Sentiment: NetApp’s inclusion on Zacks’ list of top momentum stocks reinforces the view that its recent operating performance and share-price trend remain favorable. Best Momentum Stock to Buy for September 10th Positive Sentiment: Northland Securities raised its FY2027 EPS forecast to $8.14 from $7.11 and its FY2028 forecast to $9.15 from $7.85. It also increased estimates for several quarterly periods while maintaining an “Outperform” rating, signaling stronger expectations for demand and profitability. Positive Sentiment: Recent results showed substantial earnings and revenue strength: NetApp reported quarterly EPS of $2.58 versus the $2.12 consensus estimate, while revenue of $2.03 billion exceeded the $1.84 billion forecast and grew nearly 30% year over year. The company also raised its product and earnings outlook, supporting optimism around its storage and data-management strategy. Positive Sentiment: Shareholders approved NetApp’s governance changes and re-elected the company’s director nominees, including CEO George Kurian. The result removes a potential governance overhang and maintains leadership continuity. NetApp Shareholders Approve Governance Changes and Board Slate Neutral Sentiment: Analysts are comparing NetApp with Super Micro Computer as a value investment, but the article does not represent a specific change in NetApp’s outlook. SMCI or NTAP: Which Is the Better Value Stock Right Now? Negative Sentiment: Northland’s $187 price target remains below NetApp’s recent trading level, suggesting that at least one analyst sees limited near-term upside despite raising earnings estimates. NetApp Price Performance NASDAQ:NTAP opened at $199.28 on Monday. NetApp, Inc. has a 12-month low of $93.69 and a 12-month high of $209.06. The firm has a market cap of $39.14 billion, a price-to-earnings ratio of 28.11, a price-to-earnings-growth ratio of 2.14 and a beta of 1.44. The company’s 50-day moving average is $182.09 and its two-hundred day moving average is $144.20. The company has a current ratio of 1.24, a quick ratio of 1.16 and a debt-to-equity ratio of 1.30. NetApp (NASDAQ:NTAP – Get Free Report) last issued its quarterly earnings results on Wednesday, September 2nd. The data storage provider reported $2.58 EPS for the quarter, topping analysts’ consensus estimates of $2.12 by $0.46. The business had revenue of $2.02 billion during the quarter, compared to the consensus estimate of $1.84 billion. NetApp had a net margin of 19.18% and a return on equity of 119.13%. The company’s quarterly revenue was up 29.9% compared to the same quarter last year. During the same period in the previous year, the firm posted $1.15 earnings per share. NetApp has set its FY 2027 guidance at 9.730-10.030 EPS and its Q2 2027 guidance at 2.540-2.640 EPS. Research analysts expect that NetApp, Inc. will post 8.32 EPS for the current year.

NetApp Announces Dividend The firm also recently declared a quarterly dividend, which will be paid on Wednesday, October 28th. Shareholders of record on Friday, October 9th will be issued a $0.52 dividend. The ex-dividend date is Friday, October 9th. This represents a $2.08 annualized dividend and a yield of 1.0%. NetApp’s payout ratio is 29.34%.

Insider Buying and Selling at NetApp In other news, EVP Elizabeth O’Callahan sold 1,000 shares of NetApp stock in a transaction on Monday, August 10th. The stock was sold at an average price of $193.82, for a total value of $193,820.00. Following the completion of the sale, the executive vice president owned 30,297 shares of the company’s stock, valued at $5,872,164.54. The trade was a 3.20% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, President Cesar Cernuda sold 49,464 shares of the company’s stock in a transaction on Tuesday, June 23rd. The shares were sold at an average price of $154.82, for a total value of $7,658,016.48. Following the completion of the transaction, the president owned 46,806 shares of the company’s stock, valued at $7,246,504.92. The trade was a 51.38% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 54,072 shares of company stock valued at $8,556,040 over the last quarter. 0.36% of the stock is currently owned by insiders.

Wall Street Analyst Weigh In Several research firms recently commented on NTAP. Wedbush boosted their price objective on shares of NetApp from $150.00 to $170.00 and gave the stock a “neutral” rating in a research report on Thursday, September 3rd. JPMorgan Chase & Co. raised their target price on shares of NetApp from $110.00 to $150.00 and gave the company a “neutral” rating in a report on Friday, May 29th. Argus set a $225.00 target price on shares of NetApp in a research report on Friday. UBS Group upped their price target on shares of NetApp from $160.00 to $171.00 and gave the company a “neutral” rating in a report on Thursday, September 3rd. Finally, Susquehanna increased their price target on shares of NetApp from $185.00 to $195.00 and gave the company a “neutral” rating in a research report on Thursday, September 3rd. One investment analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and ten have given a Hold rating to the company’s stock. According to MarketBeat.com, NetApp has an average rating of “Hold” and an average target price of $193.86.

Get Our Latest Report on NetApp

NetApp Company Profile (Free Report)

NetApp, Inc (NASDAQ: NTAP) is a data infrastructure and cloud storage company that helps organizations manage, protect and access data across on-premises environments, private clouds and public clouds. Its offerings are designed to support enterprise workloads such as databases, business applications, artificial intelligence and virtualized computing.

The company’s portfolio includes all-flash and hybrid storage systems, cloud storage services, data management software and infrastructure-as-a-service solutions.

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NetApp, Inc. (NTAP) Q1 2027 Earnings Call September 2, 2026 5:30 PM EDT

Company Participants

Kris Newton - VP of Corporate Communications & Investor Relations
George Kurian - CEO & Director
Wissam Jabre - Executive VP & CFO

Conference Call Participants

Joseph Cardoso - JPMorgan Chase & Co, Research Division
Mehdi Hosseini - Susquehanna Financial Group, LLLP, Research Division
Amit Daryanani - Evercore ISI Institutional Equities, Research Division
Sreekrishnan Sankarnarayanan - TD Cowen, Research Division
Michael Cadiz - Citigroup Inc., Research Division
Erik Woodring - Morgan Stanley, Research Division
Paramveer Singh - Oppenheimer & Co. Inc., Research Division
Wamsi Mohan - BofA Securities, Research Division
Steven Fox - Fox Advisors LLC
Katherine Murphy - Goldman Sachs Group, Inc., Research Division
Timothy Long - Barclays Bank PLC, Research Division
W. Chiu - Raymond James & Associates, Inc., Research Division
David Vogt - UBS Investment Bank, Research Division

Presentation

Operator

Good day, and welcome to the NetApp First Quarter of Fiscal Year 2027 Earnings Call. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference over to Kris Newton, Vice President, Investor Relations. Please go ahead.

Kris Newton
VP of Corporate Communications & Investor Relations

Hi, everyone. Thanks for joining our Q1 FY '27 earnings call. With me today are our CEO, George Kurian; and CFO, Wissam Jabre. This call is being webcast live and will be available for replay on our website at netapp.com.

During today's call, we will make forward-looking statements and projections with respect to our financial outlook and future prospects, including, without limitation, our guidance for the second quarter and fiscal year 2027, our expectations regarding future revenue, profitability and shareholder returns, the expected benefits from our acquisitions and partnerships, and other growth initiatives and strategies. These statements are subject to various risks and uncertainties, which may cause our actual results to differ materially. For more information, please refer to the documents we file from

Is NetApp Inc (NTAP) Overvalued After Q1 Earnings Beat? EPS at $1.88 vs Est. $1.65, Revenue at $2.03B vs Est. $1.84B, GF Score: 88/100 Favorable Fiscal Results and Strategic Innovations Highlight Growth Potential

On September 2, 2026, NetApp Inc NTAP released its 8-K filing announcing impressive financial results for the first quarter of fiscal year 2027. The company reported record net revenues of $2.03 billion, a 30% increase year-over-year, and surpassed the average analyst estimates of $1.65 earnings per share (EPS) and $1.83869 billion in revenue.

NetApp Inc, a leader in storage hardware and software solutions, has transitioned into a cloud-centric data infrastructure company. The company's flagship ONTAP data management software is complemented by an all-encompassing portfolio of all-flash, hybrid-flash, and cloud-native solutions. With a strong focus on its Hybrid Cloud and Public Cloud segments, NetApp generates a substantial portion of its revenue from the U.S. market while expanding its international presence.

NetApp has showcased remarkable growth; however, challenges persist in an increasingly competitive cloud landscape. This fiscal success is critical as it reflects the company's ability to innovate and adapt to customer needs, which may also help mitigate future challenges such as technological disruptions and pricing pressures within the industry.

Some of NetApp's noteworthy achievements in this quarter include:

Record all-flash array net revenue of $1.3 billion, growing 47% year-over-yearPublic Cloud net revenue reaching $206 million, up 28% year-over-yearBillings climbed to $2.06 billion, reflecting a 36% year-over-year increaseGAAP operating margin of 23.9% and a non-GAAP operating margin of 31.9%The acquisition of DataPelago, Inc., an AI data infrastructure company, further establishes NetApp's strategic direction towards AI and cloud integration. CEO George Kurian emphasized the importance of this momentum by stating,

“NetApp delivered a record-setting start to the year, exceeding guidance on every metric and achieving our strongest first quarter ever.”Financial MetricsQ1 FY27Q1 FY26% ChangeNet Revenues$2,025 million$1,559 million30%Net Income$375 million$233 million61%GAAP EPS$1.88$1.1563%Non-GAAP EPS$2.58$1.5566%Free Cash Flow$401 million$620 million(35)%In assessing its balance sheet, NetApp reported total assets of $10.96 billion and liabilities amounting to $9.46 billion as of July 31, 2026. This reflects a commitment to maintaining a healthy financial structure while supporting ongoing growth initiatives. Importantly, the cash flow details reveal a decline in net cash provided by operating activities at $503 million—down 25% year-over-year—which could signal potential cash management challenges ahead.

GuruFocus Valuation CheckAccording to GuruFocus's proprietary metrics, NetApp Inc NTAP has a GF Score of 88 out of 100, indicating strong potential as a value investment. However, with a current price of $181.735, the stock is assessed as 49.7% overvalued compared to a GF Value of $121.43.

The company's financial strength is rated at 6 out of 10, reflecting a stable balance sheet, but there remains room for improvement under tougher market conditions. In profitability, NTAP excels with a perfect rank of 10 out of 10, demonstrating its robust margins in a competitive landscape. Additionally, the growth rank stands at 9 out of 10, indicating strong growth potential and consistency in earnings.

The insider activity has shown a notable selling trend, with insiders offloading $12.3 million worth of stock over the past 12 months. This could be interpreted as a cautious signal for prospective investors. For a deeper dive, visit the NetApp Inc stock page on GuruFocus.

Explore the complete 8-K earnings release (here) from NetApp Inc for further details.

GuruFocus context: GuruFocus’ GF Value™ estimates fair value near $121.43 (49.7% overvalued); its GF Score™ is 88/100; 9 gurus currently hold the stock, with 4 adding and 5 trimming positions in recent quarters — guru 13F data Simply Wall St and Morningstar don’t have. See the full NetApp Inc NTAP research.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Key Takeaways NetApp expects Q1 FY2027 sales of $1.75B-$1.90B, with an extra week adding about $65M of revenue.AI demand remains strong, with about 500 wins in Q4 and more than 1,100 for fiscal 2026.Cloud storage grew 30% in fiscal 2026, while Keystone benefits from the shift to consumption-based models. NetApp, Inc. (NTAP - Free Report) is slated to release first-quarter fiscal 2027 earnings on Sept. 2, after the closing bell.

The company expects non-GAAP earnings per share to be between $2.05 and $2.15 for the quarter. The Zacks Consensus Estimate is currently pegged at $2.12 per share, indicating 36.8% growth from the year-ago level.

Net sales are anticipated to be in the range between $1.750 billion and $1.900 billion. The Zacks Consensus Estimate is pegged at $1.84 billion, implying an 18.2% increase from the prior-year reported number.

NTAP’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 4.65%.

Key Factors to Note for NTAP’s Q1 EarningsNetApp is likely to have benefited from momentum across cloud, flash, AI and Keystone in first-quarter fiscal 2027, supported by a strong enterprise IT spending environment and increasing AI activity. In the last reported quarter, management anticipated IT spending to rise as enterprises prepared for AI, with demand across cloud, flash, AI and Keystone. The company is also likely to have benefited from broad-based demand as customers prioritized data infrastructure for AI. The first quarter included an extra week, which was expected to contribute about $65 million of revenue, mainly from Support and Cloud, while adding $21 million of operating expenses. Management anticipates first-quarter non-GAAP gross margin of 69.1-70.1% and operating margin of 28.4-29.4%.

AI remains a key growth driver for NetApp. The company reported approximately 500 AI wins in the fourth quarter and more than 1,100 for fiscal 2026 compared with roughly 400 for the entire prior fiscal year. These wins included enterprise and neocloud customers and covered data preparation, large-scale analytics, training, fine-tuning and inferencing. All elements of the flash portfolio performed strongly in enterprise AI configurations, while hybrid flash gained traction in less demanding AI environments. On the last earnings call, management highlighted AI strength to remain broad-based across segments, verticals and geographies.

All-flash storage is also benefiting from AI demand, with management noting particularly strong growth in AI use cases. NetApp’s installed-base penetration increased another 1% to 48%. The company raised prices during the fourth quarter, with pricing actions expected to increasingly flow through over the next one to two quarters. Management expects product gross margin to reach a trough in the July quarter and gradually improve as pricing actions offset higher component costs.

Public Cloud and Keystone are additional growth contributors. First-party and marketplace cloud storage services grew 30% year over year in fiscal 2026, while AI use cases are beginning to emerge in the cloud. Keystone continues to benefit from the shift toward consumption-based storage models and is expected to grow faster than the traditional business.

NetApp is also seeing opportunities from AFX, AI Data Engine, neo cloud and sovereign cloud customers. Meanwhile, the company continues to manage higher NAND and component costs through pricing actions, supplier diversification and supply-chain measures. On the last earnings call, management stated that it believed it could source adequate supply to meet its fiscal 2027 outlook, which might have benefited NTAP in the to-be-reported quarter.

However, the company is facing stiff competition, while changes in customer purchase timing could lead to volatility despite the healthy overall demand environment.

Recent DevelopmentsOn Aug. 6, 2026, NetApp acquired JetStream Software, which specializes in VMware disaster recovery and migration. The acquisition will aid NetApp in helping enterprises safeguard applications, speed up cloud migration and modernize infrastructure while ensuring cyber resilience.

On July 22, 2026, NetApp acquired DataPelago, a startup specializing in AI data infrastructure.  The deal expands NetApp's intelligent data infrastructure portfolio by bringing GPU-accelerated data processing directly to the storage layer, allowing organizations to process data where it resides instead of copying it to separate AI infrastructure. The acquisition is likely to strengthen NetApp's competitive position in the rapidly growing AI infrastructure market.

On June 23, 2026, NetApp launched StorageGRID 12.1 to improve distributed data management, helping customers scale AI workloads, data lakes and modern object-based applications more efficiently.

On June 3, 2026, NetApp and Cisco expanded their FlexPod platform with new validated AI solutions designed to simplify enterprise AI deployments, inferencing, RAG workflows and edge computing while enhancing security and scalability. The collaboration integrates technologies from NVIDIA to help organizations accelerate AI adoption with pre-tested, enterprise-grade infrastructure.

On the same day, NetApp and Splunk expanded their collaboration with a new SOAR playbook designed to help customers contain ransomware attacks, reduce data loss and strengthen cyber resilience. The solution combines NetApp’s Intelligent Data Infrastructure with Splunk’s analytics and observability capabilities to improve threat response and recovery efficiency.

What Our Model Says About NTAPOur proven model predicts an earnings beat for NTAP this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. This is the case here.

NTAP has an Earnings ESP of +3.77% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Other Stocks With Favorable CombinationHere are a few other companies worth considering, as our model indicates that they possess the right combination to exceed earnings expectations in their upcoming releases:

Ciena Corporation (CIEN - Free Report) currently has an Earnings ESP of +0.58% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for revenues and earnings is pegged at $1.64 billion and $1.73 per share, respectively. CIEN is slated to report third-quarter 2026 results on Sept. 3.

Dell Technologies Inc. (DELL - Free Report) has an Earnings ESP of +6.20% and a Zacks Rank #1 at present.

The Zacks Consensus Estimate for revenues and earnings is pegged at $45.3 billion and $4.95 per share, respectively. DELL is slated to report second-quarter fiscal 2027 results on Sept. 1.

lululemon athletica inc. (LULU - Free Report) currently has an Earnings ESP of +0.70% and a Zacks Rank #3.

The Zacks Consensus Estimate for revenues and earnings is pegged at $2.47 billion and $1.79 per share, respectively. LULU is scheduled to report second-quarter fiscal 2026 results on Sept. 3.

B. Metzler seel. Sohn & Co. AG purchased a new position in NetApp, Inc. (NASDAQ:NTAP – Free Report) in the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor purchased 40,897 shares of the data storage provider’s stock, valued at approximately $6,329,000.

A number of other hedge funds also recently bought and sold shares of NTAP. BlackRock Inc. purchased a new stake in NetApp in the 2nd quarter worth $2,925,168,000. Norges Bank purchased a new position in NetApp during the fourth quarter valued at $458,060,000. First Trust Advisors LP lifted its holdings in NetApp by 127.0% during the first quarter. First Trust Advisors LP now owns 3,658,066 shares of the data storage provider’s stock valued at $374,549,000 after purchasing an additional 2,046,912 shares in the last quarter. Deutsche Bank AG acquired a new stake in shares of NetApp in the second quarter valued at about $195,203,000. Finally, Bank of New York Mellon Corp acquired a new stake in shares of NetApp in the second quarter valued at about $181,772,000. Hedge funds and other institutional investors own 92.17% of the company’s stock.

Wall Street Analysts Forecast Growth Several research analysts recently weighed in on NTAP shares. Citigroup upped their price target on shares of NetApp from $150.00 to $209.00 and gave the stock a “neutral” rating in a research report on Tuesday. The Goldman Sachs Group reiterated a “buy” rating and issued a $200.00 price objective on shares of NetApp in a report on Tuesday, June 2nd. Susquehanna boosted their price objective on NetApp from $110.00 to $185.00 and gave the stock a “neutral” rating in a research note on Friday, May 29th. Barclays increased their target price on NetApp from $120.00 to $199.00 and gave the company an “overweight” rating in a report on Friday, May 29th. Finally, Wall Street Zen downgraded NetApp from a “strong-buy” rating to a “buy” rating in a research report on Wednesday, July 29th. Five investment analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average price target of $177.25.

View Our Latest Report on NetApp NetApp Price Performance NASDAQ:NTAP opened at $192.27 on Friday. NetApp, Inc. has a 52 week low of $93.69 and a 52 week 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 company has a market capitalization of $37.73 billion, a P/E ratio of 30.23, a P/E/G ratio of 3.46 and a beta of 1.45. The stock’s fifty day moving average is $172.93 and its two-hundred day moving average is $134.89.

NetApp (NASDAQ:NTAP – Get Free Report) last released its quarterly earnings results on Thursday, May 28th. The data storage provider reported $2.03 earnings per share for the quarter, missing analysts’ consensus estimates of $2.27 by ($0.24). The business had revenue of $1.95 billion for the quarter, compared to analysts’ expectations of $1.87 billion. NetApp had a return on equity of 117.23% and a net margin of 18.43%.The business’s revenue for the quarter was up 12.5% compared to the same quarter last year. During the same quarter in the prior year, the company posted $1.93 earnings per share. NetApp has set its FY 2027 guidance at 8.700-9.000 EPS and its Q1 2027 guidance at 2.050-2.150 EPS. Equities analysts expect that NetApp, Inc. will post 7.3 EPS for the current year.

NetApp Announces Dividend The business also recently declared a quarterly dividend, which was paid on Wednesday, July 29th. Stockholders of record on Friday, July 10th were paid a $0.52 dividend. This represents a $2.08 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date of this dividend was Friday, July 10th. NetApp’s payout ratio is 32.70%.

Insider Activity In other NetApp news, CAO Lorenzo Daniel De sold 225 shares of the business’s stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $171.09, for a total value of $38,495.25. Following the sale, the chief accounting officer owned 1,090 shares of the company’s stock, valued at $186,488.10. The trade was a 17.11% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, President Cesar Cernuda sold 2,608 shares of the company’s stock in a transaction on Monday, August 17th. The stock was sold at an average price of $204.48, for a total value of $533,283.84. Following the transaction, the president owned 46,530 shares in the company, valued at $9,514,454.40. This trade represents a 5.31% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 55,297 shares of company stock valued at $8,758,016. Company insiders own 0.36% of the company’s stock.

NetApp Company Profile (Free Report)

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.

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Abacus FCF Advisors LLC purchased a new position in shares of NetApp, Inc. (NASDAQ:NTAP – Free Report) during the second quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund purchased 49,193 shares of the data storage provider’s stock, valued at approximately $7,613,000.

Other hedge funds have also recently modified their holdings of the company. West Financial Advisors LLC purchased a new position in shares of NetApp in the second quarter worth $37,000. Park Square Financial Group LLC grew its holdings in shares of NetApp by 68.7% during the fourth quarter. Park Square Financial Group LLC now owns 253 shares of the data storage provider’s stock valued at $29,000 after buying an additional 103 shares during the last quarter. Gen Wealth Partners Inc acquired a new position in shares of NetApp in the 4th quarter valued at $30,000. DV Equities LLC acquired a new position in shares of NetApp in the 4th quarter valued at $30,000. Finally, Measured Wealth Private Client Group LLC purchased a new position in NetApp in the 3rd quarter worth $35,000. Institutional investors and hedge funds own 92.17% of the company’s stock.

NetApp Trading Down 5.0% NASDAQ NTAP opened at $194.48 on Thursday. The company has a market capitalization of $38.16 billion, a PE ratio of 30.58, a P/E/G ratio of 3.67 and a beta of 1.45. The company has a fifty day moving average of $171.67 and a 200 day moving average of $133.81. NetApp, Inc. has a 1 year low of $93.69 and a 1 year high of $209.06. The company has a debt-to-equity ratio of 1.84, a current ratio of 1.44 and a quick ratio of 1.39.

NetApp (NASDAQ:NTAP – Get Free Report) last posted its quarterly earnings results on Thursday, May 28th. The data storage provider reported $2.03 EPS for the quarter, missing the consensus estimate of $2.27 by ($0.24). The business had revenue of $1.95 billion during the quarter, compared to analysts’ expectations of $1.87 billion. NetApp had a net margin of 18.43% and a return on equity of 117.23%. NetApp’s revenue for the quarter was up 12.5% compared to the same quarter last year. During the same period in the previous year, the company posted $1.93 earnings per share. NetApp has set its FY 2027 guidance at 8.700-9.000 EPS and its Q1 2027 guidance at 2.050-2.150 EPS. Research analysts forecast that NetApp, Inc. will post 7.3 earnings per share for the current year. NetApp Announces Dividend The business also recently declared a quarterly dividend, which was paid on Wednesday, July 29th. Investors of record on Friday, July 10th were given a dividend of $0.52 per share. This represents a $2.08 annualized dividend and a yield of 1.1%. The ex-dividend date was Friday, July 10th. NetApp’s dividend payout ratio (DPR) is currently 32.70%.

Insider Activity at NetApp In other news, EVP Elizabeth M. O’callahan sold 1,000 shares of NetApp stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $193.82, for a total transaction of $193,820.00. Following the completion of the transaction, the executive vice president directly owned 30,297 shares of the company’s stock, valued at $5,872,164.54. The trade was a 3.20% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CAO Lorenzo Daniel De sold 225 shares of the business’s stock in a transaction on Monday, June 1st. The shares were sold at an average price of $171.09, for a total transaction of $38,495.25. Following the completion of the transaction, the chief accounting officer owned 1,090 shares of the company’s stock, valued at approximately $186,488.10. This represents a 17.11% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 55,297 shares of company stock worth $8,758,016. 0.36% of the stock is owned by corporate insiders.

Wall Street Analysts Forecast Growth A number of analysts have commented on NTAP shares. Susquehanna lifted their price target on NetApp from $110.00 to $185.00 and gave the stock a “neutral” rating in a research report on Friday, May 29th. Barclays increased their price objective on NetApp from $120.00 to $199.00 and gave the company an “overweight” rating in a report on Friday, May 29th. JPMorgan Chase & Co. raised their price objective on NetApp from $110.00 to $150.00 and gave the stock a “neutral” rating in a research note on Friday, May 29th. Wedbush lifted their target price on NetApp from $115.00 to $150.00 and gave the stock a “neutral” rating in a report on Friday, May 29th. Finally, Morgan Stanley upgraded NetApp from an “underweight” rating to an “equal weight” rating and upped their target price for the company from $137.00 to $173.00 in a research report on Monday, August 10th. Five analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company. According to MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $177.25.

Get Our Latest Report on NetApp

NetApp Profile (Free Report)

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.

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NetApp (NTAP - Free Report) closed at $194.48 in the latest trading session, marking a -5% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.21%. Elsewhere, the Dow saw an upswing of 0.22%, while the tech-heavy Nasdaq appreciated by 0.16%.

Shares of the data storage company have appreciated by 23.5% over the course of the past month, outperforming the Computer and Technology sector's gain of 3.8%, and the S&P 500's gain of 3.25%.

Analysts and investors alike will be keeping a close eye on the performance of NetApp in its upcoming earnings disclosure. The company's earnings report is set to go public on September 2, 2026. In that report, analysts expect NetApp to post earnings of $2.11 per share. This would mark year-over-year growth of 36.13%. At the same time, our most recent consensus estimate is projecting a revenue of $1.83 billion, reflecting a 17.61% rise from the equivalent quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $9 per share and revenue of $7.54 billion, indicating changes of +10.7% and +8.86%, respectively, compared to the previous year.

Investors should also take note of any recent adjustments to analyst estimates for NetApp. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.83% higher. NetApp is currently a Zacks Rank #3 (Hold).

Investors should also note NetApp's current valuation metrics, including its Forward P/E ratio of 22.74. This denotes a premium relative to the industry average Forward P/E of 10.67.

Investors should also note that NTAP has a PEG ratio of 2.98 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Computer- Storage Devices was holding an average PEG ratio of 1.18 at yesterday's closing price.

The Computer- Storage Devices industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 23, which puts it in the top 10% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

In the latest trading session, NetApp (NTAP - Free Report) closed at $163.88, marking a +2.62% move from the previous day. The stock's change was more than the S&P 500's daily loss of 1.01%. At the same time, the Dow lost 0.77%, and the tech-heavy Nasdaq lost 1.4%.

The stock of data storage company has fallen by 0.01% in the past month, leading the Computer and Technology sector's loss of 3.73% and undershooting the S&P 500's gain of 0.32%.

The upcoming earnings release of NetApp will be of great interest to investors. The company's upcoming EPS is projected at $2.11, signifying a 36.13% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $1.83 billion, reflecting a 17.43% rise from the equivalent quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $8.88 per share and a revenue of $7.48 billion, representing changes of +9.23% and +8.07%, respectively, from the prior year.

Any recent changes to analyst estimates for NetApp should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Currently, NetApp is carrying a Zacks Rank of #3 (Hold).

In terms of valuation, NetApp is currently trading at a Forward P/E ratio of 17.99. This expresses a premium compared to the average Forward P/E of 14.84 of its industry.

One should further note that NTAP currently holds a PEG ratio of 2.35. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Computer- Storage Devices was holding an average PEG ratio of 1.53 at yesterday's closing price.

The Computer- Storage Devices industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 22, putting it in the top 9% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

NetApp (NTAP - Free Report) ended the recent trading session at $168.86, demonstrating a -1.67% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.42%. At the same time, the Dow added 0.29%, and the tech-heavy Nasdaq gained 0.29%.

The stock of data storage company has risen by 7.02% in the past month, leading the Computer and Technology sector's gain of 0.85% and the S&P 500's gain of 2.2%.

Market participants will be closely following the financial results of NetApp in its upcoming release. On that day, NetApp is projected to report earnings of $2.11 per share, which would represent year-over-year growth of 36.13%. Simultaneously, our latest consensus estimate expects the revenue to be $1.83 billion, showing a 17.43% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $8.88 per share and revenue of $7.48 billion, which would represent changes of +9.23% and +8.07%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for NetApp. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection remained stagnant. NetApp is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, NetApp is presently being traded at a Forward P/E ratio of 19.35. This indicates a premium in contrast to its industry's Forward P/E of 16.26.

Investors should also note that NTAP has a PEG ratio of 2.53 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Computer- Storage Devices industry had an average PEG ratio of 1.72.

The Computer- Storage Devices industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 30, which puts it in the top 13% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow NTAP in the coming trading sessions, be sure to utilize Zacks.com.