NetApp (NASDAQ:NTAP) Issues FY 2027 Earnings Guidance

NetApp (NASDAQ:NTAP) updated its FY 2027 earnings guidance on Wednesday morning. The company provided EPS guidance of 9.730-10.030 for the period, compared to the consensus earnings per share estimate of 8.680. The company issued revenue guidance of $8.0 billion-$8.2 billion, compared to the consensus revenue estimate of $7.5 billion. NetApp also updated its Q2 2027 guidance to 2.540-2.640 EPS.

Analysts Set New Price Targets

Several equities research analysts have weighed in on the stock. Wedbush lifted their price target on shares of NetApp from $150.00 to $170.00 and gave the company a “neutral” rating in a research note on Thursday. TD Cowen reiterated a “buy” rating and issued a $200.00 price target on shares of NetApp in a report on Thursday. Barclays boosted their price objective on NetApp from $199.00 to $219.00 and gave the company an “overweight” rating in a report on Thursday. Wells Fargo & Company upped their price objective on shares of NetApp from $180.00 to $190.00 and gave the stock an “equal weight” rating in a report on Thursday. Finally, The Goldman Sachs Group reaffirmed a “buy” rating and set a $210.00 target price on shares of NetApp in a research report on Thursday. Six equities research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $192.07.

NetApp Stock Performance

Shares of NTAP opened at $185.38 on Friday. NetApp has a 12 month low of $93.69 and a 12 month high of $209.06. The stock has a 50 day moving average of $178.07 and a 200 day moving average of $140.54. The company has a market capitalization of $36.38 billion, a price-to-earnings ratio of 26.15, a PEG ratio of 2.46 and a beta of 1.44. The company has a current ratio of 1.44, a quick ratio of 1.39 and a debt-to-equity ratio of 1.84.

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

NetApp Announces Dividend

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

Insider Buying and Selling at NetApp

In related news, EVP Elizabeth O’Callahan sold 1,000 shares of NetApp stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $193.82, for a total value of $193,820.00. Following the completion of the sale, the executive vice president owned 30,297 shares of the company’s stock, valued at approximately $5,872,164.54. This trade represents a 3.20% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, President Cesar Cernuda sold 49,464 shares of the business’s stock in a transaction dated Tuesday, June 23rd. The shares were sold at an average price of $154.82, for a total value of $7,658,016.48. Following the completion of the sale, the president owned 46,806 shares in the company, valued at $7,246,504.92. This represents a 51.38% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 55,072 shares of company stock valued at $8,719,520 in the last quarter. 0.36% of the stock is owned by corporate insiders.

Key NetApp News

Here are the key news stories impacting NetApp this week:

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

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of NTAP. Arrowstreet Capital Limited Partnership grew its stake in NetApp by 94.6% in the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 1,823,292 shares of the data storage provider’s stock valued at $215,987,000 after buying an additional 886,485 shares in the last quarter. AQR Capital Management LLC increased its position in shares of NetApp by 71.6% during the third quarter. AQR Capital Management LLC now owns 1,849,218 shares of the data storage provider’s stock valued at $219,058,000 after buying an additional 771,835 shares during the period. Wellington Management Group LLP increased its position in shares of NetApp by 17.1% during the third quarter. Wellington Management Group LLP now owns 4,915,553 shares of the data storage provider’s stock valued at $582,296,000 after buying an additional 718,409 shares during the period. Bank of America Corp DE boosted its position in shares of NetApp by 83.0% in the second quarter. Bank of America Corp DE now owns 1,544,513 shares of the data storage provider’s stock valued at $164,568,000 after acquiring an additional 700,467 shares during the period. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its stake in NetApp by 17.4% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 4,127,533 shares of the data storage provider’s stock valued at $442,018,000 after acquiring an additional 611,003 shares in the last quarter. 92.17% of the stock is owned by institutional investors.

NetApp Company Profile

NetApp, Inc (NASDAQ: NTAP) is a data management and storage company that delivers hybrid cloud data services for applications and data. Founded in 1992 as Network Appliance and rebranded as NetApp in 2008, the company is headquartered in Sunnyvale, California. NetApp’s offering focuses on enabling organizations to store, manage, protect and move data across on-premises environments and major public clouds.

The company’s product portfolio centers on the ONTAP data management software and a range of storage systems and services built around it.