NetApp (NASDAQ:NTAP) Issues Q2 2027 Earnings Guidance

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

Wall Street Analyst Weigh In

Several analysts recently weighed in on NTAP shares. Northland Securities boosted their price objective on shares of NetApp from $137.00 to $171.00 and gave the stock an “outperform” rating in a research note on Friday, May 29th. Morgan Stanley raised NetApp from an “underweight” rating to an “equal weight” rating and raised their target price for the stock from $137.00 to $173.00 in a research report on Monday, August 10th. Citigroup upped their price target on NetApp from $150.00 to $209.00 and gave the company a “neutral” rating in a research report on Tuesday, August 18th. Argus increased their price target on NetApp from $130.00 to $200.00 and gave the company a “buy” rating in a research note on Monday, June 1st. Finally, Wall Street Zen lowered NetApp from a “strong-buy” rating to a “buy” rating in a research note on Wednesday, July 29th. Five research analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus target price of $184.08.

NetApp Trading Down 1.3%

NASDAQ NTAP traded down $2.39 during mid-day trading on Wednesday, reaching $180.77. 3,853,626 shares of the stock were exchanged, compared to its average volume of 2,696,395. The stock has a market cap of $35.47 billion, a P/E ratio of 28.42, a P/E/G ratio of 3.30 and a beta of 1.45. The company has a debt-to-equity ratio of 1.84, a current ratio of 1.44 and a quick ratio of 1.39. NetApp has a one year low of $93.69 and a one year high of $209.06. The stock has a 50 day simple moving average of $176.95 and a 200-day simple moving average of $139.38.

NetApp (NASDAQ:NTAP) last issued its quarterly earnings results on Wednesday, September 2nd. The data storage provider reported $2.58 earnings per share for the quarter, topping analysts’ consensus estimates of $2.12 by $0.46. NetApp had a return on equity of 117.23% and a net margin of 18.43%.The firm had revenue of $2.02 billion during the quarter, compared to the consensus estimate of $1.84 billion. NetApp has set its FY 2027 guidance at 9.730-10.030 EPS and its Q2 2027 guidance at 2.540-2.640 EPS. On average, analysts anticipate that NetApp will post 7.34 EPS for the current year.

Insider Buying and Selling

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

Key Headlines Impacting NetApp

Here are the key news stories impacting NetApp this week:

• Positive Sentiment: Quarterly results exceeded expectations. NetApp reported adjusted earnings of $2.58 per share, $0.46 above the consensus estimate, while revenue reached approximately $2.02 billion versus expectations of $1.84 billion. The company also posted an 18.43% net margin and 117.23% return on equity. NetApp quarterly earnings press release
• Positive Sentiment: Management issued guidance above analyst forecasts. NetApp expects second-quarter fiscal 2027 EPS of $2.54-$2.64 and revenue of $2.0-$2.2 billion, compared with consensus estimates of $2.08 and $1.8 billion. Full-year fiscal 2027 guidance calls for EPS of $9.73-$10.03 and revenue of $8.0-$8.2 billion, also above consensus estimates of $8.68 and $7.5 billion.
• Positive Sentiment: Technical and analyst commentary was supportive. A hammer chart pattern was viewed as a potential sign of technical support, while upward earnings-estimate revisions could signal a near-term reversal. Bank of America also forecast strong appreciation potential for NTAP. Zacks NetApp technical analysis
• Neutral Sentiment: Brokerage expectations were broadly close to the market price. The reported average analyst price target was $179.77, indicating limited near-term upside based on that measure, although individual analysts may be more bullish.
• Negative Sentiment: The muted stock reaction may reflect elevated expectations. NTAP trades near its 12-month high and at a relatively demanding valuation, with a reported price-to-earnings ratio of 28.42. Investors may have used the earnings event to lock in gains even though the results and outlook surpassed consensus.

Institutional Investors Weigh In On NetApp

A number of hedge funds have recently made changes to their positions in NTAP. Sivia Capital Partners LLC bought a new position in NetApp during the second quarter valued at about $315,000. B. Riley Wealth Advisors Inc. bought a new stake in NetApp in the second quarter worth about $203,000. Litman Gregory Wealth Management LLC purchased a new position in NetApp in the fourth quarter valued at about $194,000. Ancora Advisors LLC boosted its stake in NetApp by 1,759.3% in the third quarter. Ancora Advisors LLC now owns 1,004 shares of the data storage provider’s stock valued at $119,000 after acquiring an additional 950 shares during the last quarter. Finally, Transamerica Financial Advisors LLC grew its position in shares of NetApp by 16.8% during the 4th quarter. Transamerica Financial Advisors LLC now owns 833 shares of the data storage provider’s stock valued at $89,000 after acquiring an additional 120 shares during the period. 92.17% of the stock is currently 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.