NetApp (NTAP)
Market Price (8/4/2026): $183.09 | Market Cap: $36.4 BilInvestor Relations Sector: Information Technology | Industry: Technology Hardware, Storage & Peripherals
NetApp (NTAP)
Market Price (8/4/2026): $183.09Market Cap: $36.4 BilSector: Information TechnologyIndustry: Technology Hardware, Storage & Peripherals
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 30%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 27%, CFO LTM is 2.1 Bil Attractive yieldFCF Yield is 5.1% Stock buyback supportStock Buyback 3Y Total is 3.0 Bil Low stock price volatilityVol 12M is 43% Megatrend and thematic driversMegatrends include Cloud Computing, Artificial Intelligence, and Cybersecurity. Themes include Hybrid Cloud Solutions, Show more. | Trading close to highsDist 52W High is 0.0%, Dist 3Y High is 0.0% | Valuation getting more expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is 74% Key risksNTAP key risks include [1] intense competition from both established technology giants and specialized rivals, Show more. |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 30%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 27%, CFO LTM is 2.1 Bil |
| Attractive yieldFCF Yield is 5.1% |
| Stock buyback supportStock Buyback 3Y Total is 3.0 Bil |
| Low stock price volatilityVol 12M is 43% |
| Megatrend and thematic driversMegatrends include Cloud Computing, Artificial Intelligence, and Cybersecurity. Themes include Hybrid Cloud Solutions, Show more. |
| Trading close to highsDist 52W High is 0.0%, Dist 3Y High is 0.0% |
| Valuation getting more expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is 74% |
| Key risksNTAP key risks include [1] intense competition from both established technology giants and specialized rivals, Show more. |
Qualitative Assessment
AI Analysis | Feedback
NetApp (NTAP) stock has gained about 65% since 4/30/2026 because of the following key factors:
1. NetApp's strong fiscal Q4 2026 results and optimistic guidance for fiscal Q1 2027 significantly boosted investor confidence. The company announced its fiscal Q4 2026 (ended April 24, 2026) results on May 28, 2026, reporting revenue of $1.95 billion, a 12% year-over-year increase, surpassing analyst estimates of $1.87 billion. Adjusted earnings per share reached $2.43, exceeding the consensus of $2.27 per share. Following this report, NetApp's stock jumped 26.4% on May 29, 2026. Furthermore, the company issued an optimistic outlook for fiscal Q1 2027, with revenue guidance approximately 8.5% above consensus estimates.
2. Surging demand driven by Artificial Intelligence (AI) for data infrastructure and NetApp's strategic AI initiatives acted as a major catalyst. NetApp reported approximately 500 AI and data preparation wins in fiscal Q4 2026 alone, contributing to over 1,100 such wins for the full fiscal year 2026, a significant increase from roughly 400 in the prior fiscal year. The company's offerings are crucial for managing large, often unstructured, data sets required for AI model training and inference. Key developments include the acquisition of DataPelago on July 16, 2026, to enhance data readiness for AI at the infrastructure layer, and expanded support for AI workloads announced on June 23, 2026.
Show more
NetApp (NTAP) stock has gained about 65% since 4/30/2026 because of the following key factors:
1. NetApp's strong fiscal Q4 2026 results and optimistic guidance for fiscal Q1 2027 significantly boosted investor confidence. The company announced its fiscal Q4 2026 (ended April 24, 2026) results on May 28, 2026, reporting revenue of $1.95 billion, a 12% year-over-year increase, surpassing analyst estimates of $1.87 billion. Adjusted earnings per share reached $2.43, exceeding the consensus of $2.27 per share. Following this report, NetApp's stock jumped 26.4% on May 29, 2026. Furthermore, the company issued an optimistic outlook for fiscal Q1 2027, with revenue guidance approximately 8.5% above consensus estimates.
2. Surging demand driven by Artificial Intelligence (AI) for data infrastructure and NetApp's strategic AI initiatives acted as a major catalyst. NetApp reported approximately 500 AI and data preparation wins in fiscal Q4 2026 alone, contributing to over 1,100 such wins for the full fiscal year 2026, a significant increase from roughly 400 in the prior fiscal year. The company's offerings are crucial for managing large, often unstructured, data sets required for AI model training and inference. Key developments include the acquisition of DataPelago on July 16, 2026, to enhance data readiness for AI at the infrastructure layer, and expanded support for AI workloads announced on June 23, 2026.
3. Robust growth across key product segments, particularly in all-flash arrays, public cloud, and storage-as-a-service offerings, contributed to the positive trend. NetApp recorded all-flash array net revenue of $1.2 billion for fiscal Q4 2026, marking an 18% year-over-year increase. For the full fiscal year 2026, all-flash array revenue reached $4.2 billion, up 11% year-over-year. Public cloud net revenue also saw strong performance, reaching a record $182 million in fiscal Q4 2026, an 11% year-over-year increase. The company's Keystone storage-as-a-service revenue experienced substantial growth of approximately 80% year-over-year in fiscal year 2026, indicating a growing preference for subscription-based models and enhanced revenue visibility.
4. Upgraded analyst ratings and increased price targets reflected growing confidence in NetApp's future performance. During this period, several Wall Street analysts revised their outlooks positively. Bank of America Securities raised its price target for NetApp to $180 from $150 on June 8, 2026. Goldman Sachs upgraded NetApp to a "Buy" rating from "Hold" and reaffirmed a $200 price target on June 2, 2026, reiterating this "Buy" rating and $200 price target on July 16, 2026. Barclays also reiterated a "Buy" rating with a $199 price target on June 24, 2026. The consensus analyst rating for NetApp shifted towards a "Buy," with an average price target reflecting an optimistic outlook.
Show less
Stock Movement Drivers
Fundamental Drivers
The 65.6% change in NTAP stock from 4/30/2026 to 8/3/2026 was primarily driven by a 58.1% change in the company's P/E Multiple.| (LTM values as of) | 4302026 | 8032026 | Change |
|---|---|---|---|
| Stock Price ($) | 110.43 | 182.92 | 65.6% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 6,709 | 6,925 | 3.2% |
| Net Income Margin (%) | 18.1% | 18.4% | 2.0% |
| P/E Multiple | 18.0 | 28.5 | 58.1% |
| Shares Outstanding (Mil) | 198 | 199 | -0.5% |
| Cumulative Contribution | 65.6% |
Market Drivers
4/30/2026 to 8/3/2026| Return | Correlation | |
|---|---|---|
| NTAP | 65.6% | |
| Market (SPY) | 5.4% | 28.7% |
| Sector (XLK) | 11.6% | 36.5% |
Fundamental Drivers
The 91.4% change in NTAP stock from 1/31/2026 to 8/3/2026 was primarily driven by a 76.6% change in the company's P/E Multiple.| (LTM values as of) | 1312026 | 8032026 | Change |
|---|---|---|---|
| Stock Price ($) | 95.57 | 182.92 | 91.4% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 6,637 | 6,925 | 4.3% |
| Net Income Margin (%) | 17.7% | 18.4% | 3.9% |
| P/E Multiple | 16.2 | 28.5 | 76.6% |
| Shares Outstanding (Mil) | 199 | 199 | 0.0% |
| Cumulative Contribution | 91.4% |
Market Drivers
1/31/2026 to 8/3/2026| Return | Correlation | |
|---|---|---|
| NTAP | 91.4% | |
| Market (SPY) | 9.8% | 29.9% |
| Sector (XLK) | 23.9% | 36.8% |
Fundamental Drivers
The 78.7% change in NTAP stock from 7/31/2025 to 8/3/2026 was primarily driven by a 64.5% change in the company's P/E Multiple.| (LTM values as of) | 7312025 | 8032026 | Change |
|---|---|---|---|
| Stock Price ($) | 102.34 | 182.92 | 78.7% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 6,572 | 6,925 | 5.4% |
| Net Income Margin (%) | 18.0% | 18.4% | 2.1% |
| P/E Multiple | 17.3 | 28.5 | 64.5% |
| Shares Outstanding (Mil) | 201 | 199 | 1.0% |
| Cumulative Contribution | 78.7% |
Market Drivers
7/31/2025 to 8/3/2026| Return | Correlation | |
|---|---|---|
| NTAP | 78.7% | |
| Market (SPY) | 20.9% | 39.9% |
| Sector (XLK) | 36.1% | 42.9% |
Fundamental Drivers
The 148.6% change in NTAP stock from 7/31/2023 to 8/3/2026 was primarily driven by a 130.8% change in the company's P/E Multiple.| (LTM values as of) | 7312023 | 8032026 | Change |
|---|---|---|---|
| Stock Price ($) | 73.58 | 182.92 | 148.6% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 6,362 | 6,925 | 8.8% |
| Net Income Margin (%) | 20.0% | 18.4% | -8.0% |
| P/E Multiple | 12.4 | 28.5 | 130.8% |
| Shares Outstanding (Mil) | 214 | 199 | 7.5% |
| Cumulative Contribution | 148.6% |
Market Drivers
7/31/2023 to 8/3/2026| Return | Correlation | |
|---|---|---|
| NTAP | 148.6% | |
| Market (SPY) | 71.4% | 50.4% |
| Sector (XLK) | 103.4% | 53.2% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| NTAP Return | 42% | -33% | 51% | 34% | -6% | 69% | 208% |
| Peers Return | 32% | -18% | 53% | 36% | 17% | 63% | 332% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 9% | 99% |
Monthly Win Rates [3] | |||||||
| NTAP Win Rate | 75% | 33% | 42% | 50% | 50% | 62% | |
| Peers Win Rate | 63% | 37% | 72% | 67% | 48% | 50% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 38% | |
Max Drawdowns [4] | |||||||
| NTAP Max Drawdown | -15% | -38% | -12% | -15% | -39% | -16% | |
| Peers Max Drawdown | -15% | -36% | -16% | -26% | -32% | -26% | |
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: DELL, HPE, IBM, AMZN, MSFT. See NTAP Returns vs. Peers.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 8/3/2026 (YTD)
How Low Can It Go
| Event | NTAP | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -38.5% | -18.8% |
| % Gain to Breakeven | 62.6% | 23.1% |
| Time to Breakeven | 159 days | 79 days |
| 2024 Yen Carry Trade Unwind | ||
| % Loss | -14.1% | -7.8% |
| % Gain to Breakeven | 16.4% | 8.5% |
| Time to Breakeven | 655 days | 18 days |
| 2023 SVB Regional Banking Crisis | ||
| % Loss | -10.2% | -6.7% |
| % Gain to Breakeven | 11.4% | 7.1% |
| Time to Breakeven | 20 days | 31 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -31.7% | -24.5% |
| % Gain to Breakeven | 46.5% | 32.4% |
| Time to Breakeven | 425 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -33.6% | -33.7% |
| % Gain to Breakeven | 50.5% | 50.9% |
| Time to Breakeven | 238 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -35.8% | -19.2% |
| % Gain to Breakeven | 55.7% | 23.8% |
| Time to Breakeven | 865 days | 105 days |
In The Past
NetApp's stock fell -38.5% during the 2025 US Tariff Shock. Such a loss loss requires a 62.6% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
| Event | NTAP | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -38.5% | -18.8% |
| % Gain to Breakeven | 62.6% | 23.1% |
| Time to Breakeven | 159 days | 79 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -31.7% | -24.5% |
| % Gain to Breakeven | 46.5% | 32.4% |
| Time to Breakeven | 425 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -33.6% | -33.7% |
| % Gain to Breakeven | 50.5% | 50.9% |
| Time to Breakeven | 238 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -35.8% | -19.2% |
| % Gain to Breakeven | 55.7% | 23.8% |
| Time to Breakeven | 865 days | 105 days |
| 2015-2016 China Devaluation / Global Growth Scare | ||
| % Loss | -29.6% | -12.2% |
| % Gain to Breakeven | 42.1% | 13.9% |
| Time to Breakeven | 206 days | 62 days |
| 2014-2016 Oil Price Collapse | ||
| % Loss | -48.1% | -6.8% |
| % Gain to Breakeven | 92.5% | 7.3% |
| Time to Breakeven | 388 days | 15 days |
| 2011 US Debt Ceiling Crisis & European Contagion | ||
| % Loss | -34.1% | -17.9% |
| % Gain to Breakeven | 51.8% | 21.8% |
| Time to Breakeven | 2236 days | 123 days |
| 2008-2009 Global Financial Crisis | ||
| % Loss | -59.6% | -53.4% |
| % Gain to Breakeven | 147.3% | 114.4% |
| Time to Breakeven | 314 days | 1085 days |
| Summer 2007 Credit Crunch | ||
| % Loss | -23.4% | -8.6% |
| % Gain to Breakeven | 30.6% | 9.5% |
| Time to Breakeven | 80 days | 47 days |
In The Past
NetApp's stock fell -38.5% during the 2025 US Tariff Shock. Such a loss loss requires a 62.6% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
About NetApp (NTAP)
NetApp, Inc. (NTAP) is a global provider of data management and storage solutions, offering software, systems, and cloud services. The company's primary function is to help organizations efficiently store, manage, share, and protect their data across various environments, including on-premises infrastructure, private clouds, and public clouds worldwide. Essentially, NetApp enables businesses to build, run, and optimize their data infrastructure, ensuring data accessibility and security wherever it resides.
The company's extensive product portfolio can be categorized into several key areas. Its cloud services provide solutions for cloud storage, data control, analytics, and optimization, featuring offerings like NetApp Cloud Volumes, Cloud Manager, and the "Spot by NetApp" suite for cloud cost and resource management. For traditional on-premises data centers, NetApp delivers high-performance data storage systems such as the All-Flash FAS and Fabric Attached Storage series, complemented by powerful data protection and management software like ONTAP, SnapMirror, and Active IQ. NetApp also offers application-aware data management under the Astra brand and flexible storage-as-a-service through NetApp Keystone.
NetApp serves a broad and diverse global clientele, addressing the data infrastructure needs of enterprises across numerous industries. Its solutions are adopted by organizations in critical sectors including energy, financial services, government, technology, internet, life sciences, healthcare, manufacturing, media, entertainment, and telecommunications. The company reaches these varied markets through a combination of its direct sales force and a robust ecosystem of partners.
AI Analysis | Feedback
Here are a couple of analogies for NetApp (NTAP):
- NetApp is like **Dell EMC for the multi-cloud data era.**
- NetApp is like **VMware for enterprise data management.**
AI Analysis | Feedback
- Cloud Services: Provides a comprehensive suite of cloud offerings including storage (NetApp Cloud Volumes), control (NetApp Cloud Manager), analytics (NetApp Cloud Insights), and optimization (Spot by NetApp).
- Data Storage Systems: Offers various hardware and software-defined storage solutions such as All-Flash FAS, Fabric Attached Storage, FlexPod, and StorageGRID.
- Data Management Software: Includes NetApp ONTAP Storage Management System, NetApp ElementOS, NetApp SANtricity, and NetApp Astra for efficient data organization and optimization.
- Data Protection Solutions: Features tools like NetApp SnapCenter, SnapMirror, and SnapLock for backup management, data replication, and compliance.
- NetApp Keystone: A portfolio of payment solutions and storage-as-a-service offerings for flexible consumption.
- Professional Services: Provides assessment, design, consulting, and implementation services to support NetApp solutions.
AI Analysis | Feedback
NetApp (NTAP) sells primarily to other companies and organizations, operating in a business-to-business (B2B) model. Due to the nature of its enterprise software, systems, and cloud services business, NetApp does not typically disclose the names of its individual major customer companies.
However, NetApp serves a wide range of markets globally, which represent its customer base:
- Energy
- Financial Services
- Government
- Technology
- Internet
- Life Science
- Healthcare Service
- Manufacturing
- Media
- Entertainment
- Animation
- Video Postproduction
- Telecommunication
AI Analysis | Feedback
- Flex (FLEX)
- Jabil (JBL)
AI Analysis | Feedback
George Kurian, Chief Executive Officer, Director
George Kurian became Chief Executive Officer of NetApp in June 2015, having joined the company in 2011. Prior to his time at NetApp, he held significant leadership roles including Vice President and General Manager of the Application Networking and Switching Technology Group at Cisco Systems, Vice President at Akamai Technologies, a management consultant at McKinsey & Company, and led software engineering and product management teams at Oracle Corporation. He holds a Bachelor of Science degree in electrical engineering from Princeton University and an MBA from Stanford University.
Mike Berry, Executive Vice President, Chief Financial Officer
Mike Berry joined NetApp as Executive Vice President and Chief Financial Officer on March 16, 2020. Before his role at NetApp, he served as EVP and CFO at McAfee. His extensive background in finance and operations also includes positions as EVP, CFO, and COO at FireEye, and EVP and CFO for Informatica. He has also held finance and operations leadership roles at other technology companies such as SolarWinds and i2 Technologies. Mr. Berry earned a bachelor's degree in finance from Augsburg University and an MBA in finance from the University of St. Thomas. He serves on the boards of directors for Rapid7, Inc. and FinancialForce.com, Inc.
César Cernuda, President
César Cernuda has served as President of NetApp since July 2020, overseeing the company's go-to-market strategy. Before joining NetApp, he was President of Microsoft Asia Pacific and Latin America. He holds a Bachelor's degree in Business Administration from ESIC Business & Marketing School.
Syam Nair, Executive Vice President and Chief Product Officer
Syam Nair is the Chief Product Officer at NetApp, leading the company's product and engineering teams with over 25 years of experience in scaling cloud platforms. He is recognized for his disruptive innovation, incubating new technologies, and leading large teams through transformations. Previously at Microsoft, he played a key role in the growth of Office 365, launched Windows 10, and led the Microsoft 365 Security business.
Elizabeth (Beth) O'Callahan, Executive Vice President and Chief Administrative Officer
Elizabeth (Beth) O'Callahan serves as NetApp's Chief Administrative Officer, responsible for Legal, Compliance, Government Relations, Sustainability, Human Resources, Workplace Experience, and Corporate Communications. She also holds the position of NetApp's Corporate Secretary.
AI Analysis | Feedback
Key Risks for NetApp (NTAP)
-
Intense and Evolving Competition in Data Management and Storage Markets: NetApp operates in a highly competitive environment against both traditional enterprise storage vendors (such as Dell EMC, Hewlett Packard Enterprise, and IBM) and hyperscale cloud providers (including Amazon Web Services, Microsoft Azure, and Google Cloud). This diverse competitive landscape puts significant pressure on pricing, product differentiation, and market share, particularly as customers increasingly adopt hybrid and multi-cloud strategies.
-
Rapid Technological Change and the Need for Continuous Innovation: The data storage and management industry is characterized by swift technological advancements, including the rise of new storage technologies (e.g., all-flash arrays, object storage), software-defined infrastructure, artificial intelligence for data insights, and evolving cloud architectures. NetApp must consistently invest heavily in research and development and successfully bring innovative products and services to market to meet changing customer demands and avoid technological obsolescence.
-
Vulnerability to Macroeconomic Conditions and Enterprise IT Spending Fluctuations: NetApp's financial performance is closely tied to overall enterprise IT spending, which can be significantly impacted by global economic conditions, geopolitical events, and business confidence. Economic downturns or uncertainty can lead to reduced capital expenditures by businesses, delayed purchasing decisions for new storage systems and data management solutions, and extended product refresh cycles, thereby negatively affecting NetApp's revenue and profitability.
AI Analysis | Feedback
The clear emerging threat for NetApp is the increasing maturity and comprehensive nature of native data storage, management, and optimization services offered directly by hyperscale public cloud providers (such as Amazon Web Services, Microsoft Azure, and Google Cloud Platform). As enterprises continue to accelerate their adoption of cloud-native strategies and consolidate workloads within these public cloud environments, they may increasingly opt for the integrated, native services provided by the cloud vendors themselves, potentially diminishing the need for third-party hybrid cloud data management solutions like those offered by NetApp. While NetApp strategically partners and integrates with these cloud providers, the hyperscalers are also direct competitors aiming to capture the full stack of enterprise IT spending, including data services that NetApp traditionally provides.
AI Analysis | Feedback
NetApp (NTAP) participates in several large and growing addressable markets globally, spanning data storage, cloud services, and data management.
Here are the estimated market sizes for their main products and services:
- Global Data Storage Market: The global data storage market size was valued at approximately USD 255.29 billion in 2025 and is projected to reach USD 984.56 billion by 2034. Within this, the global next-generation data storage market was estimated at USD 65.12 billion in 2024 and is projected to grow to USD 90.03 billion by 2029. The global data center storage market revenue reached USD 63.72 billion in 2024 and is predicted to attain around USD 185.56 billion by 2033.
- Global Cloud Storage Market: The global cloud storage market was valued at USD 161.28 billion in 2025 and is projected to grow to USD 809.99 billion by 2034. Another estimate places the global cloud storage market at USD 179.26 billion in 2026, expected to reach USD 513.86 billion by 2031.
- Global Hybrid Cloud Market: The global hybrid cloud market size was valued at approximately USD 196.04 billion in 2025 and is projected to grow to USD 611.33 billion by 2034. North America accounted for approximately 35% of the global hybrid cloud market in 2023.
- Global Data Protection Market: The global data protection market size was valued at over USD 179.02 billion in 2025 and is poised to exceed USD 817.39 billion by 2035. North America is projected to hold a 35% share of this market by 2035.
- Global Enterprise Data Management Market: The global enterprise data management market size is estimated at USD 124.93 billion in 2025 and is predicted to increase to approximately USD 349.52 billion by 2034. North America dominated this market with a 37% share in 2024.
- Global Storage-as-a-Service (STaaS) Market: The global Storage as a Service market size was valued at USD 55.94 billion in 2024 and is poised to grow to USD 549.56 billion by 2033. North America held the second-largest market share in 2024. Other reports estimate the global STaaS market at USD 53.6 billion in 2025, reaching USD 323.9 billion by 2032.
- Global Cloud Cost Management and Optimization Market: The global cloud cost management and optimization market size is projected at USD 11.01 billion in 2026 and is anticipated to reach USD 38.4 billion by 2035. North America leads this global market.
AI Analysis | Feedback
NetApp (NASDAQ: NTAP) is expected to drive future revenue growth over the next 2-3 years through several key areas:
- Growth in All-Flash Array Revenue: NetApp has demonstrated strong performance in its all-flash array portfolio, which recorded a revenue of $1 billion in Q3 FY2026, marking an 11% year-over-year increase. This segment is a significant contributor to its Hybrid Cloud offerings.
- Expansion of Public Cloud Services: The company's Public Cloud revenue, excluding the divested Spot business, saw an 18% increase in Q2 FY2026 and a 17% rise in Q3 FY2026, primarily driven by its first-party and marketplace storage services. Approximately half of this revenue growth is attributed to new customer acquisition.
- Increasing Adoption of AI-focused Solutions: NetApp is experiencing strong momentum with its Artificial Intelligence (AI) solutions, including AFX, a disaggregated storage system for AI, and the AI Data Engine (AIDE). Around 300 customers have already selected NetApp for their AI data preparation and storage needs, indicating a growing opportunity in this sector.
- Growth of Keystone (Storage-as-a-Service): Revenue from NetApp's storage-as-a-service offering, Keystone, grew by 76% year-over-year in Q2 FY2026 and approximately 65% in Q3 FY2026, highlighting its increasing adoption and contribution to the company's top line.
AI Analysis | Feedback
Share Repurchases
- NetApp consistently returned capital to shareholders through share repurchases, with $1.57 billion returned in fiscal year 2025 through dividends and buybacks.
- In fiscal year 2023, NetApp repurchased $850 million in stock.
- At the end of fiscal year 2023, the company authorized an additional $1 billion for share repurchases, with approximately $400 million remaining from prior authorizations.
Share Issuance
- No significant dollar amounts for share issuance for capital raising purposes were explicitly detailed. However, the diluted share count decreased year-over-year, for example, by 5% in Q4 fiscal year 2023, reflecting the impact of share repurchases.
Inbound Investments
- No information available regarding large investments made in NetApp by third parties.
Outbound Investments
- NetApp completed the acquisition of CloudCheckr, a cloud optimization platform, in February 2022.
Capital Expenditures
- NetApp reported cash flow from operations of $1.51 billion in fiscal year 2025 and $1.69 billion in fiscal year 2024.
- The company consistently directs investments towards product innovation, focusing on its all-flash array portfolio and cloud storage services, with new system launches and enhanced capabilities occurring in Q3 fiscal year 2025.
- Capital expenditures are primarily focused on strategic growth areas such as AI, hybrid cloud, and data security, aligning with customers' digital transformation priorities.
Latest Trefis Analyses
Research & Analysis
Invest in Strategies
Wealth Management
Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 255.16 |
| Mkt Cap | 245.7 |
| Rev LTM | 101,550 |
| Op Inc LTM | 11,776 |
| FCF LTM | 6,716 |
| FCF 3Y Avg | 9,211 |
| CFO LTM | 13,679 |
| CFO 3Y Avg | 11,435 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 16.8% |
| Rev Chg 3Y Avg | 11.5% |
| Rev Chg Q | 18.7% |
| QoQ Delta Rev Chg LTM | 4.3% |
| Op Inc Chg LTM | 19.9% |
| Op Inc Chg 3Y Avg | 17.1% |
| Op Mgn LTM | 15.2% |
| Op Mgn 3Y Avg | 13.9% |
| QoQ Delta Op Mgn LTM | 0.7% |
| CFO/Rev LTM | 21.2% |
| CFO/Rev 3Y Avg | 20.2% |
| FCF/Rev LTM | 14.7% |
| FCF/Rev 3Y Avg | 12.9% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 245.7 |
| P/S | 3.5 |
| P/Op Inc | 24.5 |
| P/EBIT | 21.1 |
| P/E | 27.8 |
| P/CFO | 18.3 |
| Total Yield | 4.4% |
| Dividend Yield | 0.9% |
| FCF Yield 3Y Avg | 5.0% |
| D/E | 0.1 |
| Net D/E | 0.1 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | 18.0% |
| 3M Rtn | 41.8% |
| 6M Rtn | 53.1% |
| 12M Rtn | 58.2% |
| 3Y Rtn | 126.4% |
| 1M Excs Rtn | 16.5% |
| 3M Excs Rtn | 35.7% |
| 6M Excs Rtn | 45.5% |
| 12M Excs Rtn | 30.1% |
| 3Y Excs Rtn | 67.2% |
Comparison Analyses
Price Behavior
| Market Price | $182.92 | |
| Market Cap ($ Bil) | 36.4 | |
| First Trading Date | 11/21/1995 | |
| Distance from 52W High | 0.0% | |
| 50 Days | 200 Days | |
| DMA Price | $162.42 | $120.52 |
| DMA Trend | up | up |
| Distance from DMA | 12.6% | 51.8% |
| 3M | 1YR | |
| Volatility | 64.5% | 42.6% |
| Downside Capture | 104.17 | 124.37 |
| Upside Capture | 293.65 | 165.03 |
| Correlation (SPY) | 28.6% | 39.8% |
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 1.31 | 1.32 | 1.34 | 1.07 | 1.31 | 1.22 |
| Up Beta | 0.76 | 0.26 | -1.62 | -0.30 | 0.28 | 1.00 |
| Down Beta | 0.12 | 1.56 | 1.64 | 1.76 | 1.83 | 1.35 |
| Up Capture | 310% | 178% | 384% | 236% | 229% | 253% |
| Bmk +ve Days | 11 | 22 | 35 | 67 | 138 | 427 |
| Stock +ve Days | 13 | 20 | 31 | 66 | 126 | 394 |
| Down Capture | 67% | 135% | 107% | 76% | 116% | 105% |
| Bmk -ve Days | 11 | 21 | 28 | 59 | 114 | 326 |
| Stock -ve Days | 9 | 23 | 31 | 59 | 125 | 358 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with NTAP | |
|---|---|---|---|---|
| NTAP | 79.2% | 42.6% | 1.47 | - |
| Sector ETF (XLK) | 36.2% | 25.6% | 1.17 | 42.9% |
| Equity (SPY) | 21.0% | 12.9% | 1.20 | 39.9% |
| Gold (GLD) | 22.8% | 28.1% | 0.72 | 7.8% |
| Commodities (DBC) | 28.8% | 19.7% | 1.16 | 2.6% |
| Real Estate (VNQ) | 15.5% | 13.8% | 0.80 | 3.7% |
| Bitcoin (BTCUSD) | -45.9% | 43.1% | -1.30 | 24.3% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with NTAP | |
|---|---|---|---|---|
| NTAP | 21.2% | 34.4% | 0.62 | - |
| Sector ETF (XLK) | 19.1% | 25.7% | 0.66 | 56.5% |
| Equity (SPY) | 12.9% | 17.2% | 0.58 | 55.3% |
| Gold (GLD) | 17.2% | 18.5% | 0.75 | 6.9% |
| Commodities (DBC) | 8.4% | 19.5% | 0.32 | 13.0% |
| Real Estate (VNQ) | 2.5% | 18.9% | 0.03 | 32.4% |
| Bitcoin (BTCUSD) | 11.0% | 53.1% | 0.39 | 22.2% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with NTAP | |
|---|---|---|---|---|
| NTAP | 24.4% | 36.0% | 0.71 | - |
| Sector ETF (XLK) | 24.0% | 24.9% | 0.88 | 56.9% |
| Equity (SPY) | 15.1% | 17.9% | 0.72 | 58.1% |
| Gold (GLD) | 11.4% | 16.1% | 0.58 | 3.0% |
| Commodities (DBC) | 7.1% | 18.0% | 0.31 | 18.0% |
| Real Estate (VNQ) | 4.8% | 20.7% | 0.20 | 36.7% |
| Bitcoin (BTCUSD) | 58.0% | 66.2% | 0.98 | 14.2% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Returns Analyses
Earnings Returns History
Updated 7/2/2026| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 5/28/2026 | 22.4% | 25.6% | 8.9% |
| 2/26/2026 | -0.1% | 3.0% | 3.8% |
| 11/25/2025 | -2.0% | 4.0% | -2.7% |
| 8/27/2025 | 4.5% | 6.0% | 6.9% |
| 5/29/2025 | -0.1% | 5.4% | 7.4% |
| 2/27/2025 | -15.6% | -22.3% | -25.2% |
| 11/21/2024 | -3.4% | -3.2% | -6.8% |
| 8/28/2024 | -9.6% | -11.4% | -8.1% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 14 | 14 | 13 |
| # Negative | 10 | 10 | 11 |
| Median Positive | 4.6% | 6.7% | 8.9% |
| Median Negative | -4.6% | -3.5% | -6.8% |
| Max Positive | 22.4% | 25.6% | 22.3% |
| Max Negative | -15.6% | -22.3% | -25.2% |
| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 5/28/2026 | 22.4% | 25.6% | 8.9% |
| 2/26/2026 | -0.1% | 3.0% | 3.8% |
| 11/25/2025 | -2.0% | 4.0% | -2.7% |
| 8/27/2025 | 4.5% | 6.0% | 6.9% |
| 5/29/2025 | -0.1% | 5.4% | 7.4% |
| 2/27/2025 | -15.6% | -22.3% | -25.2% |
| 11/21/2024 | -3.4% | -3.2% | -6.8% |
| 8/28/2024 | -9.6% | -11.4% | -8.1% |
| 5/30/2024 | 3.4% | 4.3% | 11.8% |
| 2/29/2024 | 18.2% | 17.0% | 17.9% |
| 11/28/2023 | 14.6% | 16.0% | 12.9% |
| 8/23/2023 | -1.3% | -0.1% | -0.7% |
| 5/31/2023 | 8.5% | 7.0% | 15.1% |
| 2/22/2023 | 0.6% | -1.9% | -6.5% |
| 11/29/2022 | -5.8% | -12.1% | -16.3% |
| 8/24/2022 | 7.9% | -0.9% | -12.8% |
| 6/1/2022 | 0.5% | -3.4% | -13.4% |
| 2/23/2022 | -5.7% | -3.6% | 2.6% |
| 11/30/2021 | 0.7% | 2.0% | 3.2% |
| 8/25/2021 | 4.7% | 8.6% | 13.8% |
| 6/2/2021 | 2.1% | 6.4% | 6.4% |
| 2/24/2021 | -14.5% | -10.9% | -1.8% |
| 12/1/2020 | 9.4% | 11.8% | 22.3% |
| 8/26/2020 | 4.0% | 14.1% | -0.6% |
| SUMMARY STATS | |||
| # Positive | 14 | 14 | 13 |
| # Negative | 10 | 10 | 11 |
| Median Positive | 4.6% | 6.7% | 8.9% |
| Median Negative | -4.6% | -3.5% | -6.8% |
| Max Positive | 22.4% | 25.6% | 22.3% |
| Max Negative | -15.6% | -22.3% | -25.2% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 04/30/2026 | 06/05/2026 | 10-K |
| 01/31/2026 | 02/26/2026 | 10-Q |
| 10/31/2025 | 11/25/2025 | 10-Q |
| 07/31/2025 | 08/27/2025 | 10-Q |
| 04/30/2025 | 06/09/2025 | 10-K |
| 01/31/2025 | 02/27/2025 | 10-Q |
| 10/31/2024 | 11/25/2024 | 10-Q |
| 07/31/2024 | 08/28/2024 | 10-Q |
| 04/30/2024 | 06/10/2024 | 10-K |
| 01/31/2024 | 02/29/2024 | 10-Q |
| 10/31/2023 | 11/30/2023 | 10-Q |
| 07/31/2023 | 08/29/2023 | 10-Q |
| 04/30/2023 | 06/14/2023 | 10-K |
| 01/31/2023 | 03/01/2023 | 10-Q |
| 10/31/2022 | 12/01/2022 | 10-Q |
| 07/31/2022 | 08/30/2022 | 10-Q |
| Report Date | Filing Date | Filing |
|---|---|---|
| 04/30/2026 | 06/05/2026 | 10-K |
| 01/31/2026 | 02/26/2026 | 10-Q |
| 10/31/2025 | 11/25/2025 | 10-Q |
| 07/31/2025 | 08/27/2025 | 10-Q |
| 04/30/2025 | 06/09/2025 | 10-K |
| 01/31/2025 | 02/27/2025 | 10-Q |
| 10/31/2024 | 11/25/2024 | 10-Q |
| 07/31/2024 | 08/28/2024 | 10-Q |
| 04/30/2024 | 06/10/2024 | 10-K |
| 01/31/2024 | 02/29/2024 | 10-Q |
| 10/31/2023 | 11/30/2023 | 10-Q |
| 07/31/2023 | 08/29/2023 | 10-Q |
| 04/30/2023 | 06/14/2023 | 10-K |
| 01/31/2023 | 03/01/2023 | 10-Q |
| 10/31/2022 | 12/01/2022 | 10-Q |
| 07/31/2022 | 08/30/2022 | 10-Q |
| 04/30/2022 | 06/16/2022 | 10-K |
| 01/31/2022 | 03/02/2022 | 10-Q |
| 10/31/2021 | 12/02/2021 | 10-Q |
| 07/31/2021 | 09/02/2021 | 10-Q |
| 04/30/2021 | 06/21/2021 | 10-K |
| 01/31/2021 | 03/01/2021 | 10-Q |
| 10/31/2020 | 12/03/2020 | 10-Q |
| 07/31/2020 | 08/28/2020 | 10-Q |
| 04/30/2020 | 06/15/2020 | 10-K |
| 01/31/2020 | 02/18/2020 | 10-Q |
| 10/31/2019 | 11/18/2019 | 10-Q |
| 07/31/2019 | 08/19/2019 | 10-Q |
Recent Forward Guidance
Updated 7/8/2026Latest: Q4 2026 Earnings Reported 5/28/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q1 2027 Revenue | 1.75 Bil | 1.82 Bil | 1.90 Bil | -2.4% | Lower New | Guidance: 1.87 Bil for Q4 2026 | |
| 2027 Revenue | 7.33 Bil | 7.45 Bil | 7.58 Bil | 8.8% | Higher New | Guidance: 6.85 Bil for 2026 | |
| Q1 2027 EPS | 1.35 | 1.4 | 1.45 | -22.7% | Lower New | Guidance: 1.81 for Q4 2026 | |
| 2027 EPS | 6.51 | 6.66 | 6.81 | 8.8% | Higher New | Guidance: 6.12 for 2026 | |
Prior: Q3 2026 Earnings Reported 2/26/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q4 2026 Revenue | 1.79 Bil | 1.87 Bil | 1.95 Bil | 10.7% | Higher New | Guidance: 1.69 Bil for Q3 2026 | |
| Q4 2026 GAAP EPS | 1.76 | 1.81 | 1.86 | 15.3% | Higher New | Guidance: 1.57 for Q3 2026 | |
| Q4 2026 Non-GAAP EPS | 2.21 | 2.26 | 2.31 | 43.9% | Higher New | Guidance: 1.57 for Q3 2026 | |
| 2026 Revenue | 6.77 Bil | 6.85 Bil | 6.92 Bil | 1.4% | Raised | Guidance: 6.75 Bil for 2026 | |
| 2026 GAAP EPS | 6.07 | 6.12 | 6.17 | 2.5% | Raised | Guidance: 5.97 for 2026 | |
| 2026 Non-GAAP EPS | 7.92 | 7.97 | 8.02 | 33.5% | Raised | Guidance: 5.97 for 2026 | |
Q2 2026 Earnings Reported 11/25/2025
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q3 2026 Revenue | 1.61 Bil | 1.69 Bil | 1.76 Bil | 0 | Same New | Guidance: 1.69 Bil for Q2 2026 | |
| Q3 2026 Operating Margin | 24.5% | 25.0% | 25.5% | ||||
| Q3 2026 EPS | 1.52 | 1.57 | 1.62 | 12.1% | Higher New | Guidance: 1.4 for Q2 2026 | |
| 2026 Revenue | 6.62 Bil | 6.75 Bil | 6.88 Bil | 0 | Affirmed | Guidance: 6.75 Bil for 2026 | |
| 2026 Operating Margin | 23.5% | 24.0% | 24.5% | ||||
| 2026 EPS | 5.82 | 5.97 | 6.12 | 1.7% | Raised | Guidance: 5.87 for 2026 | |
Insider Activity
Updated 7/14/2026| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | O'Callahan, Elizabeth M | EVP, Chief Admin. Officer | Direct | Sell | 7142026 | 170.92 | 1,000 | 170,920 | 5,349,283 | Form |
| 2 | Cernuda, Cesar | President | Direct | Sell | 6252026 | 154.82 | 49,464 | 7,657,881 | 7,246,377 | Form |
| 3 | O'Callahan, Elizabeth M | EVP, Chief Admin. Officer | Direct | Sell | 6122026 | 163.48 | 1,000 | 163,480 | 5,279,914 | Form |
| 4 | Held, Gerald | Direct | Sell | 6052026 | 180.00 | 7,132 | 1,283,760 | 2,479,500 | Form | |
| 5 | De, Lorenzo Daniel | VP, Controller & CAO | Direct | Sell | 6032026 | 171.09 | 225 | 38,495 | 186,488 | Form |
| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | O'Callahan, Elizabeth M | EVP, Chief Admin. Officer | Direct | Sell | 7142026 | 170.92 | 1,000 | 170,920 | 5,349,283 | Form |
| 2 | Cernuda, Cesar | President | Direct | Sell | 6252026 | 154.82 | 49,464 | 7,657,881 | 7,246,377 | Form |
| 3 | O'Callahan, Elizabeth M | EVP, Chief Admin. Officer | Direct | Sell | 6122026 | 163.48 | 1,000 | 163,480 | 5,279,914 | Form |
| 4 | Held, Gerald | Direct | Sell | 6052026 | 180.00 | 7,132 | 1,283,760 | 2,479,500 | Form | |
| 5 | De, Lorenzo Daniel | VP, Controller & CAO | Direct | Sell | 6032026 | 171.09 | 225 | 38,495 | 186,488 | Form |
| 6 | De, Lorenzo Daniel | VP, Controller & CAO | Direct | Sell | 5202026 | 120.00 | 275 | 33,000 | 130,800 | Form |
| 7 | O'Callahan, Elizabeth M | EVP, Chief Admin. Officer | Direct | Sell | 5132026 | 117.73 | 1,000 | 117,730 | 2,164,113 | Form |
| 8 | O'Callahan, Elizabeth M | EVP, Chief Admin. Officer | Direct | Sell | 4142026 | 96.25 | 1,000 | 96,250 | 1,865,518 | Form |
| 9 | O'Callahan, Elizabeth M | EVP, Chief Admin. Officer | Direct | Sell | 3122026 | 100.67 | 1,000 | 100,670 | 2,051,856 | Form |
| 10 | De, Lorenzo Daniel | VP, Controller & CAO | Direct | Sell | 2192026 | 101.84 | 252 | Form | ||
| 11 | O'Callahan, Elizabeth M | EVP, Chief Admin. Officer | Direct | Sell | 2112026 | 103.45 | 1,000 | 103,450 | 2,076,759 | Form |
| 12 | O'Callahan, Elizabeth M | EVP, Chief Admin. Officer | Direct | Sell | 1142026 | 105.49 | 1,000 | 105,490 | 2,223,202 | Form |
| 13 | O'Callahan, Elizabeth M | EVP, Chief Admin. Officer | Direct | Sell | 12122025 | 117.37 | 1,000 | 117,370 | 2,590,943 | Form |
| 14 | De, Lorenzo Daniel | VP, Controller & CAO | Direct | Sell | 12032025 | 110.04 | 33 | Form | ||
| 15 | De, Lorenzo Daniel | VP, Controller & CAO | Direct | Sell | 11192025 | 107.48 | 327 | Form | ||
| 16 | O'Callahan, Elizabeth M | EVP, Chief Admin. Officer | Direct | Sell | 11122025 | 114.29 | 1,000 | 114,290 | 2,471,864 | Form |
| 17 | O'Callahan, Elizabeth M | EVP, Chief Admin. Officer | Direct | Sell | 10142025 | 119.00 | 1,000 | 119,000 | 2,692,732 | Form |
| 18 | De, Lorenzo Daniel | VP, Controller & CAO | Direct | Sell | 9292025 | 121.87 | 779 | Form | ||
| 19 | Kurian, George | CEO | Direct | Sell | 9192025 | 122.91 | 8,750 | 1,075,462 | 33,792,630 | Form |
| 20 | O'Callahan, Elizabeth M | EVP, Chief Admin. Officer | Direct | Sell | 9122025 | 123.67 | 1,000 | 123,670 | 2,922,075 | Form |
| 21 | Kurian, George | CEO | Direct | Sell | 8202025 | 108.85 | 8,500 | 925,225 | 30,879,439 | Form |
| 22 | O'Callahan, Elizabeth M | EVP, Chief Admin. Officer | Direct | Sell | 8122025 | 105.90 | 1,000 | 105,900 | 2,462,281 | Form |
| 23 | Kurian, George | CEO | Direct | Sell | 7232025 | 108.08 | 8,500 | 918,680 | 31,160,004 | Form |
| 24 | O'Callahan, Elizabeth M | EVP, Chief Admin. Officer | Direct | Sell | 7142025 | 106.84 | 1,000 | 106,840 | 2,590,977 | Form |
Investor Activity (13F)
Updated Aug 4, 2026Active managers (13F portfolio over $250M, at least 3 holdings) with a position over $5M that is either over 10% of their portfolio or held in a concentrated book of 50 or fewer total positions. Index/ETF, sovereign, bank, community-bank and charitable/donor-advised filers are excluded.
| Active Manager |
|---|
| Active Manager |
|---|
NTAP Trade Sentinel
Constructive
CONVICTION RATIONALE
Conviction is constructive based on accelerating demand from enterprise AI adoption, evidenced by 18% growth in all-flash revenue. This is balanced by the near-term risk of margin pressure from rising component costs, which management is addressing with price increases. The company's strong execution and 8% revenue growth forecast for fiscal 2027 support the positive outlook.
STOCK ARCHETYPE
Hybrid Infrastructure & Services(Number of Systems Sold * ASP) + (Installed Base * Support Renewal Rate) + (Cloud Consumption * Price) The mix shift towards higher-margin software, support, and Public Cloud services, and the ability to maintain pricing power on high-performance all-flash systems for AI workloads.
INVESTMENT THESIS
Evidence suggests NetApp is capturing the enterprise AI refresh cycle, driving accelerating growth in its core hardware business.
- All-Flash Array revenue growth accelerated to 18% YoY in Q4, from 11% in Q3.
- The company secured approximately 500 AI and data preparation wins in Q4 FY26 alone.
- Remaining Performance Obligations grew 14% year-over-year to $5.65 billion.
- Public Cloud revenue, a strategic growth area, grew 18% year-over-year in FY26 (normalized).
- Management guided for 8% revenue growth in fiscal year 2027.
PRIMARY RISK
Rising memory and component costs are forcing a trade-off between growth and profitability, with management guiding for lower gross margins in the upcoming fiscal year despite strong demand.
- Management guided gross margin to 68.5%-69.5%.
- The company stated costs for memory and other components will remain elevated or increase.
- NetApp raised prices in Q4 FY26, a move that must be accepted by customers to be effective.
- Competitors Dell and HPE possess significantly greater scale, potentially limiting pricing power.
| KPI | Status | Rationale |
|---|---|---|
| All-Flash Array (AFA) Revenue Growth | $1.2 billion in Q4 FY26, up 18% year-over-year - Accelerating | The year-over-year growth in All-Flash Array revenue has shown consistent and significant acceleration over the past four quarters, indicating strong momentum in its core on-premise hardware business, driven by infrastructure modernization and AI workloads. |
| Public Cloud Revenue Growth (ex-Spot) | $182 million in Q4 FY26, up 18% year-over-year (excluding the divested Spot business) - Stable | Public Cloud revenue growth, normalized for the Spot divestiture, has remained consistently strong and stable in the high teens. Management noted this growth was driven by first-party and marketplace services, which increased 30% in FY26. |
| AI and data preparation wins | Approximately 500 (Q4 FY2026) | Indicates customer adoption of NetApp's infrastructure for high-growth artificial intelligence workloads, a key strategic focus for the company. |
| All-flash revenue as a percentage of Hybrid Cloud segment net revenues | 67% (Fiscal Year 2026) | Measures the penetration of higher-performance all-flash systems within the core Hybrid Cloud business, reflecting the modernization of customer data centers. |
| Keystone (Storage-as-a-Service) revenue growth | Approximately 65% from FY25 (Fiscal Year 2026) | Shows the adoption rate of the company's consumption-based, on-premises storage offering, indicating a shift in customer purchasing models towards cloud-like experiences. |
AI Growth Cycle vs. Hardware Cost Cycle
BULL VIEW
Bulls believe accelerating AI-driven demand for all-flash storage, which grew 18% in Q4, provides enough pricing power to offset component inflation and drive strong earnings growth through FY27.
CORE TENSION
Can accelerating All-Flash revenue, up 18% YoY, offset the guided gross margin contraction to 68.5%-69.5% for FY27, which the market reacted to with a 22% stock increase?
PREVAILING SENTIMENT
The latest evidence favors the bulls. The 14% growth in Remaining Performance Obligations to $5.65 billion and strong FY27 guidance suggest demand is durable enough to support necessary pricing actions.
BEAR VIEW
Bears argue that rising component costs will overwhelm pricing power, evidenced by the FY27 gross margin guidance cut, and that the current demand spike is a cyclical pull-forward.
| Timeline | Event & Metric To Watch |
|---|---|
July 29, 2026 | Quarterly Dividend Payment Watch: A cash dividend of $0.52 per share is scheduled to be paid. |
9/1/2026 | Peer AI Storage Momentum Watch: HPE (9/1) and Dell (11/9) commentary on AI-related storage attach rates and market share. |
9/2/2026 | Component Cost Pass-Through Failure Watch: Q1 gross margin result versus guidance and commentary on pricing actions and customer acceptance. |
9/2/2026 | Q1 Earnings and Guidance Disappointment Watch: Q1 results versus guidance and any change to the full-year FY27 outlook. |
10/21/2026 | Peer IBM Earnings Report Watch: Peer International Business Machines (IBM) is scheduled to report earnings. |
10/28/2026 | Peer Amazon Earnings Report Watch: Peer Amazon.com (AMZN) is scheduled to report earnings. |
June 2027 | Senior Notes Mature Watch: Principal of on Senior Notes becomes due. |
| Date | Event | Stock Impact |
|---|---|---|
2026-07-16 | Acquired AI Firm DataPelago Details: NetApp acquired DataPelago, an AI data infrastructure company, to add GPU-accelerated data processing capabilities directly at the storage layer (ART-2). | +1.1% $162.10 -> $163.88 |
2026-06-03 | Cisco AI Collaboration Details: NetApp and Cisco announced a collaboration to offer new validated solutions for secure and simplified AI, expanding on their long-standing FlexPod partnership (ART-5). | +1.8% $175.11 -> $178.33 |
2026-05-28 | Record Q4 and FY26 Results Details: NetApp reported record Q4 revenue of $1.95 billion, up 12% YoY, and raised its full-year 2027 guidance. The stock reacted very positively, rising 22.0% over two days (T-1, DRAW-1). | +22.1% $142.31 -> $173.76 |
2026-04-22 | Expanded Google Cloud Partnership Details: The company announced an evolution of its partnership, with Google Cloud adopting NetApp's platform for its own AI-driven operations. NetApp also won a Google Cloud Partner of the Year award (REWIND-1). | -3.0% $111.46 -> $108.07 |
2026-03-24 | New Cyber Resilience Alliances Details: NetApp announced strategic alliances with Commvault and Elastio to deliver integrated solutions for enterprise data protection and cyber resilience, with a focus on ransomware defense (REWIND-1). | +4.1% $100.48 -> $104.64 |
2026-02-26 | Q3 FY26 Results Reported Details: The company reported Q3 revenue of $1.71 billion, up 4% year-over-year, with record all-flash revenue of $1 billion. The stock reacted negatively, falling -3.0% over two days (T-2, DRAW-1). | -2.8% $101.05 -> $98.23 |
Position Sizing
2% - 4%
REDUCED POSITION
Sizing is volatility-based: NTAP trades at roughly 50% annualized options-implied volatility versus about 15% for the S&P 500 (3.4x the market), around the 96th percentile of its own trailing year. A 2% - 4% position keeps a single-name swing of that size within a diversified portfolio's risk budget.
Diversification Alternatives
DELL - Dell Technologies
Scale and AI Server ExposureDell offers massive scale with revenue 19.4 times that of NetApp and direct exposure to the AI server market, where it reported a $51.3 billion backlog.
HPE - Hewlett Packard Enterprise
Diversified Enterprise ITHPE provides a broader portfolio of enterprise IT solutions, including networking and services, and is also seeing significant AI systems demand, with triple-digit growth in its Alletra storage orders.
NetApp is a hybrid data infrastructure provider transitioning from a traditional hardware vendor to a key enabler of enterprise AI and multi-cloud data management.
The company's core value lies in its ONTAP software, which unifies data management across on-premises hardware and all major public clouds. This unique 'hybrid cloud' position allows it to capture enterprise spending on both data center modernization (with all-flash arrays) and cloud adoption. Its growth is now increasingly tied to enabling enterprise AI by providing the 'AI-ready' data foundation customers need to prepare and access their distributed data.
Sustained double-digit growth in Public Cloud revenue, an increasing number of AI-related customer wins, and continued market share gains in the all-flash array market.
Inability to pass on rising component costs leading to sustained product gross margin compression, a slowdown in Public Cloud growth, or evidence that competitors are winning AI infrastructure deals in NetApp's installed base.
Short-term fluctuations in hardware sales due to IT spending cycles, as long as the recurring revenue from support and cloud services remains resilient.
Repricing Catalyst
The accelerating adoption of enterprise AI, which requires the kind of unified, high-performance data infrastructure that NetApp provides, positioning the company to capture a significant share of this new spending wave.
Hybrid Cloud
$6.0B TTM (90% of Total)What It Is
Sells a portfolio of storage management and infrastructure solutions, including its ONTAP data management software, all-flash (AFF) and hybrid-flash (FAS) storage systems, and related hardware/software support and professional services (like Keystone Storage-as-a-Service) to enterprises modernizing their data centers.
Who Pays & How
Enterprises and government agencies pay to modernize their data centers, handle data-intensive workloads, and ensure data protection and cyber resilience. They choose this segment for its unified storage that supports structured and unstructured data across flash, disk, and cloud.
Competition
Public Cloud
$670M TTM (10% of Total)What It Is
Sells a portfolio of products delivered primarily as-a-service to organizations using public clouds. This includes cloud storage, data services, and operational services available on AWS, Microsoft Azure, and Google Cloud.
Who Pays & How
Enterprises leveraging public clouds pay to manage, protect, and move data seamlessly across on-premises and cloud environments. They choose this segment because NetApp is the only enterprise data infrastructure provider with first-party storage services natively integrated with all major public clouds.
Competition
NetApp — Investor Video Playlist
Industry Resources
| Information Technology Resources |
| TechCrunch |
| Wired |
| CIO |
| MIT Technology Review |
| Gartner Insights |
| Ars Technica |
| Technology Hardware, Storage & Peripherals Resources |
| The Verge |
| TechRadar |
| Tom’s Hardware |
| PCMag |
| CNET |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
Prefer one of these to Trefis? Tell us why.