NetApp (NTAP)
Market Price (9/14/2026): $189.09 | Market Cap: $37.1 BilInvestor Relations Sector: Information Technology | Industry: Technology Hardware, Storage & Peripherals
NetApp (NTAP)
Market Price (9/14/2026): $189.09Market Cap: $37.1 BilSector: Information TechnologyIndustry: Technology Hardware, Storage & Peripherals
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Attractive operating marginsOp Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is 26% Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 26%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 22% Stock buyback supportStock Buyback 3Y Total is 2.8 Bil Low stock price volatilityVol 12M is 44% 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 -3.8%, Dist 3Y High is -3.8% | Stock price has recently run up significantly6M Rtn6 month market price return is 104% Valuation getting more expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is 80% Key risksNTAP key risks include [1] intense competition from both established technology giants and specialized rivals, Show more. |
| Attractive operating marginsOp Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is 26% |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 26%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 22% |
| Stock buyback supportStock Buyback 3Y Total is 2.8 Bil |
| Low stock price volatilityVol 12M is 44% |
| 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 -3.8%, Dist 3Y High is -3.8% |
| Stock price has recently run up significantly6M Rtn6 month market price return is 104% |
| Valuation getting more expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is 80% |
| Key risksNTAP key risks include [1] intense competition from both established technology giants and specialized rivals, Show more. |
Qualitative Assessment
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NetApp (NTAP) stock has gained about 15% since 5/31/2026 because of the following key factors:
1. Exceptional Fiscal Q1 2027 Performance and Robust Forward Guidance.
NetApp's stock gained following its release of strong first-quarter fiscal year 2027 (which ended July 31, 2026) results on September 2, 2026, significantly exceeding analyst expectations. The company reported non-GAAP earnings per share (EPS) of $2.58, beating the consensus estimate of $2.12 by $0.46. Revenue for fiscal Q1 2027 reached $2.03 billion, surpassing the anticipated $1.84 billion and representing a substantial 30.12% year-over-year increase. Furthermore, NetApp provided an upbeat outlook for fiscal Q2 2027, projecting revenue between $2.025 billion and $2.175 billion and EPS between $2.54 and $2.64, both above Street expectations. The company also sharply raised its full-year fiscal 2027 revenue guidance to a range of $7.975 billion to $8.225 billion and EPS to $9.73 to $10.03, signaling confidence in sustained growth.
2. Surging Demand for AI and Hybrid Cloud Data Infrastructure.
A core driver of NetApp's strong performance was the escalating demand for its AI-driven and hybrid cloud data solutions. In fiscal Q1 2027, the company achieved record all-flash array net revenue of $1.3 billion, marking a 47% increase year-over-year, and record Public Cloud net revenue of $206 million, up 28% year-over-year. These segments are crucial for AI training, inference, and data-intensive analytics workloads. NetApp also expanded its capabilities in this area through strategic acquisitions, including DataPelago, an AI data infrastructure company, on July 22, 2026, and enhanced its integration with AWS Transform to accelerate storage migrations for AI workloads.
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NetApp (NTAP) stock has gained about 15% since 5/31/2026 because of the following key factors:
1. Exceptional Fiscal Q1 2027 Performance and Robust Forward Guidance.
NetApp's stock gained following its release of strong first-quarter fiscal year 2027 (which ended July 31, 2026) results on September 2, 2026, significantly exceeding analyst expectations. The company reported non-GAAP earnings per share (EPS) of $2.58, beating the consensus estimate of $2.12 by $0.46. Revenue for fiscal Q1 2027 reached $2.03 billion, surpassing the anticipated $1.84 billion and representing a substantial 30.12% year-over-year increase. Furthermore, NetApp provided an upbeat outlook for fiscal Q2 2027, projecting revenue between $2.025 billion and $2.175 billion and EPS between $2.54 and $2.64, both above Street expectations. The company also sharply raised its full-year fiscal 2027 revenue guidance to a range of $7.975 billion to $8.225 billion and EPS to $9.73 to $10.03, signaling confidence in sustained growth.
2. Surging Demand for AI and Hybrid Cloud Data Infrastructure.
A core driver of NetApp's strong performance was the escalating demand for its AI-driven and hybrid cloud data solutions. In fiscal Q1 2027, the company achieved record all-flash array net revenue of $1.3 billion, marking a 47% increase year-over-year, and record Public Cloud net revenue of $206 million, up 28% year-over-year. These segments are crucial for AI training, inference, and data-intensive analytics workloads. NetApp also expanded its capabilities in this area through strategic acquisitions, including DataPelago, an AI data infrastructure company, on July 22, 2026, and enhanced its integration with AWS Transform to accelerate storage migrations for AI workloads.
3. Positive Analyst Sentiment and Upgrades.
Following the strong earnings report and optimistic guidance, several financial firms upgraded NetApp's stock and increased their price targets. On September 9, 2026, Zacks Research upgraded NetApp from a "Hold" rating to a "Strong Buy." Northland Securities raised its price objective from $171.00 to $187.00 on September 3, 2026, maintaining an "Outperform" rating. Earlier in the period, on June 1, 2026, Argus boosted its target price from $130.00 to $200.00 with a "Buy" rating. Additionally, Barclays lifted its NTAP target to $219 with an Overweight rating, citing strong demand and a conservative outlook.
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Stock Movement Drivers
Fundamental Drivers
The 14.7% change in NTAP stock from 5/31/2026 to 9/13/2026 was primarily driven by a 10.2% change in the company's Total Revenues ($ Mil).| (LTM values as of) | 5312026 | 9132026 | Change |
|---|---|---|---|
| Stock Price ($) | 173.76 | 199.28 | 14.7% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 6,709 | 7,391 | 10.2% |
| Net Income Margin (%) | 18.1% | 19.2% | 6.2% |
| P/E Multiple | 28.4 | 27.5 | -3.0% |
| Shares Outstanding (Mil) | 198 | 196 | 1.0% |
| Cumulative Contribution | 14.7% |
Market Drivers
5/31/2026 to 9/13/2026| Return | Correlation | |
|---|---|---|
| NTAP | 14.7% | |
| Market (SPY) | 1.0% | 43.8% |
| Sector (XLK) | -1.8% | 42.3% |
Fundamental Drivers
The 102.9% change in NTAP stock from 2/28/2026 to 9/13/2026 was primarily driven by a 71.7% change in the company's P/E Multiple.| (LTM values as of) | 2282026 | 9132026 | Change |
|---|---|---|---|
| Stock Price ($) | 98.23 | 199.28 | 102.9% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 6,709 | 7,391 | 10.2% |
| Net Income Margin (%) | 18.1% | 19.2% | 6.2% |
| P/E Multiple | 16.0 | 27.5 | 71.7% |
| Shares Outstanding (Mil) | 198 | 196 | 1.0% |
| Cumulative Contribution | 102.9% |
Market Drivers
2/28/2026 to 9/13/2026| Return | Correlation | |
|---|---|---|
| NTAP | 102.9% | |
| Market (SPY) | 11.7% | 27.9% |
| Sector (XLK) | 35.4% | 36.2% |
Fundamental Drivers
The 79.8% change in NTAP stock from 8/31/2025 to 9/13/2026 was primarily driven by a 44.8% change in the company's P/E Multiple.| (LTM values as of) | 8312025 | 9132026 | Change |
|---|---|---|---|
| Stock Price ($) | 110.85 | 199.28 | 79.8% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 6,590 | 7,391 | 12.2% |
| Net Income Margin (%) | 17.8% | 19.2% | 8.0% |
| P/E Multiple | 19.0 | 27.5 | 44.8% |
| Shares Outstanding (Mil) | 201 | 196 | 2.6% |
| Cumulative Contribution | 79.8% |
Market Drivers
8/31/2025 to 9/13/2026| Return | Correlation | |
|---|---|---|
| NTAP | 79.8% | |
| Market (SPY) | 19.5% | 38.7% |
| Sector (XLK) | 43.6% | 41.6% |
Fundamental Drivers
The 175.5% change in NTAP stock from 8/31/2023 to 9/13/2026 was primarily driven by a 117.1% change in the company's P/E Multiple.| (LTM values as of) | 8312023 | 9132026 | Change |
|---|---|---|---|
| Stock Price ($) | 72.34 | 199.28 | 175.5% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 6,202 | 7,391 | 19.2% |
| Net Income Margin (%) | 19.5% | 19.2% | -1.6% |
| P/E Multiple | 12.7 | 27.5 | 117.1% |
| Shares Outstanding (Mil) | 212 | 196 | 8.2% |
| Cumulative Contribution | 175.5% |
Market Drivers
8/31/2023 to 9/13/2026| Return | Correlation | |
|---|---|---|
| NTAP | 175.5% | |
| Market (SPY) | 75.7% | 50.0% |
| Sector (XLK) | 117.7% | 52.7% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| NTAP Return | 42% | -33% | 51% | 34% | -6% | 74% | 217% |
| Peers Return | 32% | -18% | 53% | 36% | 17% | 86% | 392% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 11% | 102% |
Monthly Win Rates [3] | |||||||
| NTAP Win Rate | 75% | 33% | 42% | 50% | 50% | 67% | |
| Peers Win Rate | 63% | 37% | 72% | 67% | 48% | 60% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 44% | |
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 9/11/2026 (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
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| 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.
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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.**
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- 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.
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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
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- Flex (FLEX)
- Jabil (JBL)
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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.
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Key Risks for NetApp (NTAP)
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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.
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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.
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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.
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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.
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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.
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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.
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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.
Peer Outperformance in Technology Hardware, Storage & Peripherals
| Industry | Names | 1Y med | 3Y med | 5Y med | Top 3 by 5Y |
|---|---|---|---|---|---|
| Electronic Manufacturing Services | 9 | 66.7% | 194.4% | 290.6% | TTMI 835% · FLEX 749% · SANM 443% |
| Semiconductor Materials & Equipment | 27 | 129.7% | 86.1% | 107.7% | AEHR 756% · AXTI 734% · KLAC 432% |
| Technology Distributors | 9 | 33.3% | 78.3% | 101.8% | CLMB 335% · AVT 196% · SNX 147% |
| Electronic Components | 26 | 43.3% | 57.0% | 74.2% | CLS 3920% · BELFA 1373% · COHR 401% |
| Communications Equipment | 36 | 19.4% | 81.2% | 74.1% | AAOI 1361% · FEIM 1055% · LITE 979% |
| Technology Hardware, Storage & Peripherals ← | 21 | 37.9% | 57.2% | 37.0% | DELL 1172% · STX 1065% · SMCI 1012% |
| Semiconductors | 55 | 23.1% | 30.0% | 36.5% | POET 1852% · MU 1261% · NVDA 886% |
| Internet Services & Infrastructure | 6 | 17.9% | 39.5% | 21.5% | DOCN 60% · VRSN 34% · GDDY 32% |
| Electronic Equipment & Instruments | 27 | -12.8% | 7.6% | -9.5% | PI 229% · ACFN 120% · OSIS 119% |
| IT Consulting & Other Services | 28 | -24.3% | -15.2% | -30.4% | CHRN 499900% · APLD 1221% · TSSI 712% |
| Application Software | 122 | -27.1% | -16.0% | -43.0% | VIDA 193536% · INLX 5416% · PLTR 537% |
| Systems Software | 66 | -19.3% | 1.3% | -58.2% | QNC 472% · PAYS 377% · ZETA 352% |
Latest Trefis Analyses
| Title | Date | |
|---|---|---|
| DASHBOARDS | ||
| NetApp Earnings Notes | 09/01/2026 | |
| Could You Ride Out a NetApp Stock Plunge | 06/10/2026 | |
| SMCI, CRNC Look Smarter Buy Than NetApp Stock | 05/13/2026 | |
| NetApp Stock Surges 17%, With A 8-Day Winning Spree | 04/22/2026 | |
| Is NTAP The Unlikely Asset Allocation Play You Need? | 04/17/2026 | |
| NetApp Stock (-9.4%): MSFT Downgrade Hits Sentiment, Volume Surge | 01/21/2026 | |
| NetApp Stock Down 9.4% in One Day, Should You Buy The Stock? | 01/21/2026 | |
| NetApp Stock at Support Zone - Bargain or Trap? | 01/21/2026 | |
| ARTICLES | ||
| How Will NetApp Stock React To Its Upcoming Earnings? | 09/02/2026 | |
| The 52-Week-High List: 23 S&P 500 Names On Monday | 08/11/2026 | |
| NetApp’s Buyback Is Better Funded Than It Is Big | 08/04/2026 | |
| S&P 500 Movers | Winners: DELL, NTAP, NOW | Losers: CLX, RMD, INTC | 05/30/2026 | |
| Mid Cap Stocks Trading At 52-Week High | 05/23/2026 |
Research & Analysis
Invest in Strategies
Wealth Management
Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 250.03 |
| Mkt Cap | 297.4 |
| Rev LTM | 110,147 |
| Op Inc LTM | 13,626 |
| FCF LTM | 6,358 |
| FCF 3Y Avg | 8,944 |
| CFO LTM | 13,520 |
| CFO 3Y Avg | 11,270 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 16.8% |
| Rev Chg 3Y Avg | 12.9% |
| Rev Chg Q | 24.8% |
| QoQ Delta Rev Chg LTM | 5.6% |
| Op Inc Chg LTM | 28.5% |
| Op Inc Chg 3Y Avg | 21.0% |
| Op Mgn LTM | 15.2% |
| Op Mgn 3Y Avg | 13.9% |
| QoQ Delta Op Mgn LTM | 1.0% |
| CFO/Rev LTM | 21.2% |
| CFO/Rev 3Y Avg | 20.2% |
| FCF/Rev LTM | 14.5% |
| FCF/Rev 3Y Avg | 12.8% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 297.4 |
| P/S | 3.4 |
| P/Op Inc | 24.4 |
| P/EBIT | 21.0 |
| P/E | 27.5 |
| P/CFO | 18.6 |
| Total Yield | 4.5% |
| Dividend Yield | 0.8% |
| FCF Yield 3Y Avg | 4.9% |
| D/E | 0.1 |
| Net D/E | 0.0 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | 2.0% |
| 3M Rtn | 25.4% |
| 6M Rtn | 64.7% |
| 12M Rtn | 38.0% |
| 3Y Rtn | 125.0% |
| 1M Excs Rtn | 3.1% |
| 3M Excs Rtn | 22.3% |
| 6M Excs Rtn | 50.8% |
| 12M Excs Rtn | 20.6% |
| 3Y Excs Rtn | 55.6% |
Comparison Analyses
Price Behavior
| Market Price | $199.28 | |
| Market Cap ($ Bil) | 39.7 | |
| First Trading Date | 11/21/1995 | |
| Distance from 52W High | -3.8% | |
| 50 Days | 200 Days | |
| DMA Price | $181.41 | $131.71 |
| DMA Trend | up | up |
| Distance from DMA | 9.9% | 51.3% |
| 3M | 1YR | |
| Volatility | 42.9% | 44.2% |
| Downside Capture | 94.85 | 119.18 |
| Upside Capture | 186.36 | 154.96 |
| Correlation (SPY) | 37.8% | 38.1% |
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 1.38 | 1.30 | 1.33 | 0.97 | 1.27 | 1.23 |
| Up Beta | 2.15 | 1.48 | 0.85 | -0.13 | 0.39 | 1.02 |
| Down Beta | 3.51 | 0.68 | 1.74 | 1.49 | 1.88 | 1.37 |
| Up Capture | 83% | 199% | 150% | 214% | 198% | 259% |
| Bmk +ve Days | 10 | 21 | 32 | 68 | 138 | 427 |
| Stock +ve Days | 10 | 22 | 30 | 65 | 123 | 393 |
| Down Capture | 42% | 69% | 118% | 61% | 111% | 105% |
| Bmk -ve Days | 11 | 21 | 32 | 59 | 113 | 324 |
| Stock -ve Days | 11 | 20 | 34 | 61 | 127 | 357 |
[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 | 64.5% | 43.9% | 1.24 | - |
| Sector ETF (XLK) | 39.7% | 26.3% | 1.24 | 41.6% |
| Equity (SPY) | 18.3% | 12.8% | 1.03 | 38.5% |
| Gold (GLD) | 19.0% | 29.2% | 0.59 | 5.5% |
| Commodities (DBC) | 48.3% | 20.6% | 1.80 | -0.5% |
| Real Estate (VNQ) | 7.6% | 13.6% | 0.29 | 4.0% |
| Bitcoin (BTCUSD) | -32.4% | 43.8% | -0.77 | 18.9% |
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 | 20.0% | 34.8% | 0.59 | - |
| Sector ETF (XLK) | 19.7% | 25.9% | 0.68 | 56.3% |
| Equity (SPY) | 12.5% | 17.2% | 0.55 | 55.0% |
| Gold (GLD) | 18.7% | 18.8% | 0.81 | 6.2% |
| Commodities (DBC) | 11.4% | 19.5% | 0.46 | 12.4% |
| Real Estate (VNQ) | 0.7% | 18.9% | -0.07 | 31.9% |
| Bitcoin (BTCUSD) | 9.4% | 52.6% | 0.36 | 22.0% |
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 | 22.1% | 35.8% | 0.66 | - |
| Sector ETF (XLK) | 24.4% | 25.0% | 0.88 | 57.3% |
| Equity (SPY) | 15.2% | 17.9% | 0.72 | 58.4% |
| Gold (GLD) | 12.3% | 16.3% | 0.62 | 2.6% |
| Commodities (DBC) | 8.7% | 18.1% | 0.39 | 17.4% |
| Real Estate (VNQ) | 4.7% | 20.7% | 0.19 | 37.0% |
| Bitcoin (BTCUSD) | 63.2% | 66.2% | 1.03 | 14.1% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Returns Analyses
Earnings Returns History
Updated 9/14/2026| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 9/2/2026 | 2.6% | 1.6% | |
| 5/28/2026 | 22.4% | 25.6% | 8.9% |
| 2/26/2026 | -0.1% | 3.0% | 3.2% |
| 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% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 14 | 14 | 13 |
| # Negative | 10 | 10 | 10 |
| Median Positive | 4.6% | 6.2% | 8.9% |
| Median Negative | -4.6% | -3.5% | -7.4% |
| 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 |
| 9/2/2026 | 2.6% | 1.6% | |
| 5/28/2026 | 22.4% | 25.6% | 8.9% |
| 2/26/2026 | -0.1% | 3.0% | 3.2% |
| 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% |
| SUMMARY STATS | |||
| # Positive | 14 | 14 | 13 |
| # Negative | 10 | 10 | 10 |
| Median Positive | 4.6% | 6.2% | 8.9% |
| Median Negative | -4.6% | -3.5% | -7.4% |
| 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 |
|---|---|---|
| 07/31/2026 | 09/02/2026 | 10-Q |
| 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 |
| Report Date | Filing Date | Filing |
|---|---|---|
| 07/31/2026 | 09/02/2026 | 10-Q |
| 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 |
Recent Forward Guidance
Updated 9/3/2026Latest: Q1 2027 Earnings Reported 9/2/2026
| Forward Guidance | Guidance Change | |||||||
|---|---|---|---|---|---|---|---|---|
| Metric | Source | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q2 2027 Revenue | Reported | 2.02 Bil | 2.10 Bil | 2.17 Bil | 15.1% | Higher New | Guidance: 1.82 Bil for Q1 2027 | |
| Q2 2027 EPS | Reported | 1.97 | 2.02 | 2.07 | 44.3% | Higher New | Guidance: 1.4 for Q1 2027 | |
| 2027 Revenue | Reported | 7.97 Bil | 8.10 Bil | 8.22 Bil | 8.7% | Raised | Guidance: 7.45 Bil for 2027 | |
| 2027 EPS | Reported | 7.35 | 7.5 | 7.65 | 12.6% | Raised | Guidance: 6.66 for 2027 | |
Prior: Q4 2026 Earnings Reported 5/28/2026
| Forward Guidance | Guidance Change | |||||||
|---|---|---|---|---|---|---|---|---|
| Metric | Source | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q1 2027 Revenue | Reported | 1.75 Bil | 1.82 Bil | 1.90 Bil | -2.4% | Lower New | Guidance: 1.87 Bil for Q4 2026 | |
| Q1 2027 EPS | Reported | 1.35 | 1.4 | 1.45 | -22.7% | Lower New | Guidance: 1.81 for Q4 2026 | |
| 2027 Revenue | Reported | 7.33 Bil | 7.45 Bil | 7.58 Bil | 8.8% | Higher New | Guidance: 6.85 Bil for 2026 | |
| 2027 EPS | Reported | 6.51 | 6.66 | 6.81 | 8.8% | Higher New | Guidance: 6.12 for 2026 | |
Q3 2026 Earnings Reported 2/26/2026
| Forward Guidance | Guidance Change | |||||||
|---|---|---|---|---|---|---|---|---|
| Metric | Source | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q4 2026 Revenue | Reported | 1.79 Bil | 1.87 Bil | 1.95 Bil | 10.7% | Higher New | Guidance: 1.69 Bil for Q3 2026 | |
| Q4 2026 GAAP EPS | Reported | 1.76 | 1.81 | 1.86 | 15.3% | Higher New | Guidance: 1.57 for Q3 2026 | |
| Q4 2026 Non-GAAP EPS | Reported | 2.21 | 2.26 | 2.31 | 43.9% | Higher New | Guidance: 1.57 for Q3 2026 | |
| 2026 Revenue | Reported | 6.77 Bil | 6.85 Bil | 6.92 Bil | 1.4% | Raised | Guidance: 6.75 Bil for 2026 | |
| 2026 GAAP EPS | Reported | 6.07 | 6.12 | 6.17 | 2.5% | Raised | Guidance: 5.97 for 2026 | |
| 2026 Non-GAAP EPS | Reported | 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 | Source | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q3 2026 Revenue | Reported | 1.61 Bil | 1.69 Bil | 1.76 Bil | 0 | Same New | Guidance: 1.69 Bil for Q2 2026 | |
| Q3 2026 Operating Margin | Reported | 24.5% | 25.0% | 25.5% | ||||
| Q3 2026 EPS | Reported | 1.52 | 1.57 | 1.62 | 12.1% | Higher New | Guidance: 1.4 for Q2 2026 | |
| 2026 Revenue | Reported | 6.62 Bil | 6.75 Bil | 6.88 Bil | 0 | Affirmed | Guidance: 6.75 Bil for 2026 | |
| 2026 Operating Margin | Reported | 23.5% | 24.0% | 24.5% | ||||
| 2026 EPS | Reported | 5.82 | 5.97 | 6.12 | 1.7% | Raised | Guidance: 5.87 for 2026 | |
Insider Activity
Updated 9/14/2026| # | 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 | 9142026 | 184.74 | 1,000 | 184,740 | 5,678,353 | Form |
| 2 | Cernuda, Cesar | President | Direct | Sell | 8192026 | 204.48 | 2,608 | 533,290 | 9,514,563 | Form |
| 3 | O'Callahan, Elizabeth M | EVP, Chief Admin. Officer | Direct | Sell | 8122026 | 193.82 | 1,000 | 193,820 | 5,872,165 | Form |
| 4 | O'Callahan, Elizabeth M | EVP, Chief Admin. Officer | Direct | Sell | 7142026 | 170.92 | 1,000 | 170,920 | 5,349,283 | Form |
| 5 | Cernuda, Cesar | President | Direct | Sell | 6252026 | 154.82 | 49,464 | 7,657,881 | 7,246,377 | 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 | 9142026 | 184.74 | 1,000 | 184,740 | 5,678,353 | Form |
| 2 | Cernuda, Cesar | President | Direct | Sell | 8192026 | 204.48 | 2,608 | 533,290 | 9,514,563 | Form |
| 3 | O'Callahan, Elizabeth M | EVP, Chief Admin. Officer | Direct | Sell | 8122026 | 193.82 | 1,000 | 193,820 | 5,872,165 | Form |
| 4 | O'Callahan, Elizabeth M | EVP, Chief Admin. Officer | Direct | Sell | 7142026 | 170.92 | 1,000 | 170,920 | 5,349,283 | Form |
| 5 | Cernuda, Cesar | President | Direct | Sell | 6252026 | 154.82 | 49,464 | 7,657,881 | 7,246,377 | Form |
| 6 | O'Callahan, Elizabeth M | EVP, Chief Admin. Officer | Direct | Sell | 6122026 | 163.48 | 1,000 | 163,480 | 5,279,914 | Form |
| 7 | Held, Gerald | Direct | Sell | 6052026 | 180.00 | 7,132 | 1,283,760 | 2,479,500 | Form | |
| 8 | De, Lorenzo Daniel | VP, Controller & CAO | Direct | Sell | 6032026 | 171.09 | 225 | 38,495 | 186,488 | Form |
| 9 | De, Lorenzo Daniel | VP, Controller & CAO | Direct | Sell | 5202026 | 120.00 | 275 | 33,000 | 130,800 | Form |
| 10 | O'Callahan, Elizabeth M | EVP, Chief Admin. Officer | Direct | Sell | 5132026 | 117.73 | 1,000 | 117,730 | 2,164,113 | Form |
| 11 | O'Callahan, Elizabeth M | EVP, Chief Admin. Officer | Direct | Sell | 4142026 | 96.25 | 1,000 | 96,250 | 1,865,518 | Form |
| 12 | O'Callahan, Elizabeth M | EVP, Chief Admin. Officer | Direct | Sell | 3122026 | 100.67 | 1,000 | 100,670 | 2,051,856 | Form |
| 13 | De, Lorenzo Daniel | VP, Controller & CAO | Direct | Sell | 2192026 | 101.84 | 252 | Form | ||
| 14 | O'Callahan, Elizabeth M | EVP, Chief Admin. Officer | Direct | Sell | 2112026 | 103.45 | 1,000 | 103,450 | 2,076,759 | Form |
| 15 | O'Callahan, Elizabeth M | EVP, Chief Admin. Officer | Direct | Sell | 1142026 | 105.49 | 1,000 | 105,490 | 2,223,202 | Form |
| 16 | O'Callahan, Elizabeth M | EVP, Chief Admin. Officer | Direct | Sell | 12122025 | 117.37 | 1,000 | 117,370 | 2,590,943 | Form |
| 17 | De, Lorenzo Daniel | VP, Controller & CAO | Direct | Sell | 12032025 | 110.04 | 33 | Form | ||
| 18 | De, Lorenzo Daniel | VP, Controller & CAO | Direct | Sell | 11192025 | 107.48 | 327 | Form | ||
| 19 | O'Callahan, Elizabeth M | EVP, Chief Admin. Officer | Direct | Sell | 11122025 | 114.29 | 1,000 | 114,290 | 2,471,864 | Form |
| 20 | O'Callahan, Elizabeth M | EVP, Chief Admin. Officer | Direct | Sell | 10142025 | 119.00 | 1,000 | 119,000 | 2,692,732 | Form |
| 21 | De, Lorenzo Daniel | VP, Controller & CAO | Direct | Sell | 9292025 | 121.87 | 779 | Form | ||
| 22 | Kurian, George | CEO | Direct | Sell | 9192025 | 122.91 | 8,750 | 1,075,462 | 33,792,630 | Form |
| 23 | O'Callahan, Elizabeth M | EVP, Chief Admin. Officer | Direct | Sell | 9122025 | 123.67 | 1,000 | 123,670 | 2,922,075 | Form |
Investor Activity (13F)
Updated Sep 14, 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
NetApp is capitalizing on a structural AI-driven demand surge, evidenced by 47% all-flash revenue growth and a significant full-year guidance raise to 17% growth. While this re-acceleration is compelling, it is matched by a high-risk 182% inventory increase, making the durability of demand and margin stability the central points of contention.
STOCK ARCHETYPE
Hybrid Model: Durable Goods & Recurring Services(Number of Hybrid Cloud systems sold × ASP) + (Installed base × support contract attach/renewal rate) + (Public Cloud consumption/subscriptions) The mix shift towards higher-margin Public Cloud services and the ability to maintain pricing power on all-flash systems to offset component cost inflation.
INVESTMENT THESIS
Evidence points to a structural demand shift, with revenue growth accelerating to 29.9% and management raising full-year guidance, suggesting the current cycle has legs.
- All-flash array revenue accelerated to 47% year-over-year growth, reaching $1.31 billion.
- The company raised its full-year 2027 revenue guidance to 17% growth at the midpoint.
- Approximately 350 AI and data lake modernization deals were won in the latest quarter.
- Remaining performance obligations, a measure of future revenue, grew 14% to $5.65 billion.
- Public Cloud revenue grew 28% year-over-year to $206 million.
PRIMARY RISK
Inventory grew 182% year-over-year, massively outpacing 29.9% revenue growth. If the demand surge is a temporary pull-forward, not a structural shift, the company will be forced into heavy discounting and write-downs, severely compressing product gross margins from their current 54.6% level and erasing recent profit gains.
- Inventory grew 182% year-over-year, while revenue grew 29.9%.
- The inventory-versus-revenue growth divergence was 152.1 percentage points in the latest quarter.
- Management acknowledged results were helped by 'accelerated purchase decisions'.
- Component costs are expected to remain elevated or increase in the near term.
| KPI | Status | Rationale |
|---|---|---|
| All-Flash Array (AFA) Revenue Growth | $1.31 billion in Q1 FY27, representing 47% year-over-year growth. - Accelerating | The year-over-year growth in All-Flash Array revenue has shown dramatic acceleration over the past three quarters, more than quadrupling from 11% in Q3 FY26 to 47% in the latest quarter. Management attributes this to customers standardizing on NetApp for mission-critical workloads, including AI pipelines. |
| Public Cloud Revenue Growth | $206 million in Q1 FY27, representing 28% year-over-year growth (or 19% adjusted for an extra week). - Stable | After adjusting for the divestiture of the Spot business and an extra week in the latest quarter, Public Cloud revenue growth has been remarkably stable, holding in a tight high-teens range. Management attributes the growth to strong adoption of its first-party and marketplace storage services as customers migrate workloads, particularly VMware, to the cloud. |
| AI and data lake modernization deals | Approximately 350 (Q1 FY2027) | This metric indicates the company's traction in the high-growth AI infrastructure market. An increasing number of deals suggests NetApp's platform is being chosen as a foundation for enterprise AI initiatives. |
Structural AI Demand vs. A Cyclical Inventory Glut
BULL VIEW
The 47% all-flash growth and 350 new AI deals signal a durable AI investment cycle. The inventory build is a prudent move to secure components and capture this multi-year demand, as validated by the 17% full-year growth guidance.
CORE TENSION
Can accelerating all-flash demand (up 47% YoY) absorb the 182% YoY inventory build before component supply normalizes and forces write-downs?
PREVAILING SENTIMENT
The latest evidence favors the bull case. Management's decision to raise full-year revenue guidance by 8.7% signals strong confidence in near-term demand, directly countering the inventory risk.
BEAR VIEW
The 182% inventory growth is a reckless gamble on a temporary demand spike fueled by price hikes and customer panic-buying. When this normalizes, NetApp will face a margin-crushing inventory overhang, a risk the market's neutral post-earnings reaction acknowledged.
| Timeline | Event & Metric To Watch |
|---|---|
10/21/2026 | Peer IBM Earnings Report Watch: Peer International Business Machines (IBM) is scheduled to report earnings. |
10/27/2026 | Peer Microsoft Earnings Report Watch: Peer Microsoft (MSFT) is scheduled to report earnings. |
on October 28, 2026 | Quarterly Dividend Payment Watch: A cash dividend of $0.52 per share of common stock is payable to shareholders of record as of October 9, 2026. |
11/23/2026 | Competitive Pressure Intensifies Watch: Peer commentary from Dell on its earnings call regarding storage market share gains, pricing environment, or specific wins against NetApp in AI infrastructure. |
12/1/2026 | Inventory Overhang Materializes Watch: Guidance miss, gross margin compression from write-downs, or a sharp sequential increase in inventory turns below the current level of 6. |
12/1/2026 | Component Cost Pass-Through Fails Watch: Product gross margin falling below the range mentioned in transcripts, or management commentary indicating inability to offset further cost hikes. |
12/1/2026 | Next Quarterly Earnings Report Watch: Company is scheduled to report its next quarterly earnings. |
in September | Annual Customer Conference Watch: Company to host annual customer conference, NetApp Insight, to showcase innovation in its platform, particularly for AI and high-growth markets. |
| Date | Event | Stock Impact |
|---|---|---|
2026-09-02 | Fiscal 2027 Guidance Raised Details: The company raised its full-year fiscal 2027 revenue guidance by $650 million, implying 17% year-over-year growth, and raised its EPS guidance midpoint to $9.88. | +1.2% $183.16 -> $185.38 |
2026-09-02 | Record Q1 Earnings Reported Details: For the quarter ending 6/30/2026, the company reported record results with revenue up 29.9% year-over-year to $2.03 billion and non-GAAP EPS up 66% to $2.58. | +1.2% $183.16 -> $185.38 |
2026-07-16 | Acquisition of DataPelago Details: The company acquired DataPelago, an AI data infrastructure company, for $193 million to eliminate data processing bottlenecks for AI and analytics workloads. | +1.1% $162.10 -> $163.88 |
2026-05-28 | Major Post-Earnings Stock Reaction Details: Following the earnings call on May 28, 2026, the stock had a two-day reaction of 22.0%, significantly outperforming the S&P 500. | +22.1% $142.31 -> $173.76 |
2026-04-22 | Expanded Google Cloud Partnership Details: The company announced a strategic evolution in its partnership with Google Cloud, enabling enterprises to drive AI innovation with data stored in the NetApp data platform. | -3.0% $111.46 -> $108.07 |
2026-03-24 | Strategic Cyber Resilience Alliance Details: The company announced a strategic alliance with Commvault to deliver an integrated solution for enterprise data protection and cyber resilience. | +4.1% $100.48 -> $104.64 |
Position Sizing
4% - 6%
NORMAL POSITION
Sizing is volatility-based: NTAP trades at roughly 46% annualized options-implied volatility versus about 12% for the S&P 500 (3.8x the market), around the 78th percentile of its own trailing year. A 4% - 6% 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 18.1 times that of NetApp, and dominant exposure to the high-performance AI server market, having booked $60.9 billion in AI orders in its latest quarter.
HPE - Hewlett Packard Enterprise
Diversified Enterprise ITHPE provides broader exposure to enterprise IT, including networking and high-performance computing, and reported record orders, indicating strong, diversified demand beyond just storage.
A legacy hardware provider successfully executing a pivot to a software-centric, hybrid-cloud data platform, capitalizing on the AI infrastructure build-out.
NetApp provides the 'intelligent data infrastructure' that allows enterprises to manage data consistently across their own data centers and public clouds, a key capability in the AI era. The company is currently benefiting from a strong cyclical hardware refresh, which is being accelerated by enterprise AI investments. Simultaneously, its high-margin Public Cloud services business is scaling rapidly, providing a durable, long-term growth vector.
Continued double-digit growth in all-flash and Public Cloud revenues, increasing AI deal counts and sizes, and stable or improving product gross margins despite component cost pressures.
A sharp deceleration in all-flash or Public Cloud growth, evidence of market share loss to competitors like Dell or HPE, or an inability to pass on component cost increases, leading to significant margin compression.
Quarterly fluctuations in the smaller hybrid-flash business, news of partnerships for marketing events, or the launch of leveraged ETFs tied to the stock.
Repricing Catalyst
The company materially raised its full-year revenue and EPS guidance after a blowout first quarter, suggesting the market may be underestimating the strength and durability of the current AI-driven demand cycle.
Hybrid Cloud
$6.7B TTM (90% of Total)What It Is
This segment sells a portfolio of storage management and infrastructure solutions to enterprises and public sector organizations looking to modernize their data centers. Products include all-flash (AFF A-Series, C-Series) and hybrid-flash (FAS) storage systems, the foundational ONTAP software, and related support and professional services, including the Keystone Storage-as-a-Service offering.
Who Pays & How
Enterprises and government agencies pay for these solutions to handle data-intensive workloads, support both structured and unstructured data, and ensure cyber resilience. They choose NetApp for its unified platform that can manage data across on-premises, private cloud, and public cloud environments.
Competition
Public Cloud
$733M TTM (10% of Total)What It Is
This segment provides a portfolio of products delivered primarily as-a-service to organizations using public clouds. Offerings include cloud storage, data services, and operational services available on AWS, Microsoft Azure, and Google Cloud, such as Azure NetApp Files and Amazon FSx for NetApp ONTAP.
Who Pays & How
Enterprises operating in the public cloud pay for enterprise-grade storage services that are natively embedded in the major cloud platforms. They use these services to migrate workloads (like VMware) to the cloud, manage data seamlessly, and connect their data to cloud-based AI services.
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 |
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