NetApp (NASDAQ:NTAP) Issues FY 2027 Earnings Guidance

NetApp (NASDAQ:NTAP) issued an update on its FY 2027 earnings guidance on Wednesday morning. The company provided earnings per share (EPS) guidance of 9.730-10.030 for the period, compared to the consensus 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.

Analyst Upgrades and Downgrades

A number of equities research analysts have weighed in on NTAP shares. Morgan Stanley upgraded shares of NetApp from an “underweight” rating to an “equal weight” rating and upped their price objective for the stock from $137.00 to $173.00 in a report on Monday, August 10th. Bank of America lifted their target price on shares of NetApp from $180.00 to $206.00 and gave the company a “neutral” rating in a report on Monday. Susquehanna boosted their price target on NetApp from $110.00 to $185.00 and gave the stock a “neutral” rating in a research report on Friday, May 29th. Citigroup upped their price target on NetApp from $150.00 to $209.00 and gave the stock a “neutral” rating in a research note on Tuesday, August 18th. Finally, Argus lifted their price objective on NetApp from $130.00 to $200.00 and gave the company a “buy” rating in a research note on Monday, June 1st. Five investment analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $184.08.

NetApp Trading Down 1.3%

Shares of NASDAQ:NTAP opened at $180.77 on Thursday. The stock’s 50-day simple moving average is $177.45 and its two-hundred day simple moving average is $139.96. The stock has a market capitalization of $35.47 billion, a price-to-earnings ratio of 28.42, a PEG ratio of 2.49 and a beta of 1.44. NetApp has a 52-week low of $93.69 and a 52-week high of $209.06. The company has a debt-to-equity ratio of 1.84, a quick ratio of 1.39 and a current ratio of 1.44.

NetApp (NASDAQ:NTAP) last released its quarterly earnings results 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 net margin of 18.43% and a return on equity of 117.23%. The firm had revenue of $2.02 billion during the quarter, compared to analyst estimates of $1.84 billion. During the same quarter in the prior year, the firm earned $1.15 EPS. The business’s revenue for the quarter was up 29.9% compared to the same quarter last year. NetApp has set its FY 2027 guidance at 9.730-10.030 EPS and its Q2 2027 guidance at 2.540-2.640 EPS. Analysts expect that NetApp will post 7.34 EPS for the current year.

NetApp Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 28th. Shareholders of record on Friday, October 9th will be issued a dividend of $0.52 per share. This represents a $2.08 dividend on an annualized basis and a yield of 1.2%. The ex-dividend date of this dividend is Friday, October 9th. NetApp’s dividend payout ratio is currently 32.70%.

Insider Activity at NetApp

In other news, EVP Elizabeth M. O’callahan sold 1,000 shares of NetApp stock in a transaction on Monday, August 10th. The shares were sold at an average price of $193.82, for a total transaction of $193,820.00. Following the transaction, the executive vice president owned 30,297 shares in the company, valued at $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 is available 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 sale, the president directly owned 46,806 shares of the company’s stock, valued at $7,246,504.92. This represents a 51.38% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 55,072 shares of company stock worth $8,719,520 over the last quarter. Insiders own 0.36% of the company’s stock.

NetApp News Roundup

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 non-GAAP EPS of $2.58 exceeded the roughly $2.12 analyst consensus. All-flash array revenue increased 47% to $1.31 billion, supported by AI and hybrid-cloud demand. NetApp Stock Tanks Despite Strong Q1 Earnings Print
• Positive Sentiment: The company raised its fiscal 2027 outlook to approximately $8.0 billion-$8.2 billion in revenue and $9.73-$10.03 in non-GAAP EPS, well above consensus expectations. It also issued Q2 EPS guidance of $2.54-$2.64, ahead of estimates. NetApp Raises Guidance
• Positive Sentiment: NetApp announced new ONTAP capabilities validated for VMware Cloud Foundation 9.1 and disclosed the acquisition of AI data-infrastructure company DataPelago, potentially strengthening its position in AI workloads and private cloud. NetApp VMware Cloud Foundation Announcement
• Neutral Sentiment: NetApp maintained its quarterly dividend at $0.52 per share, payable October 28 to shareholders of record October 9, implying an annualized yield of about 1.2%.
• Negative Sentiment: Investors reacted negatively to management’s warning that second-quarter gross margin will decline. Non-GAAP gross margin was 70.6% in Q1, while product margins came under sequential pressure from higher component costs and a less favorable product mix. NetApp Warns Gross Margin Will Fall
• Negative Sentiment: Free cash flow fell to approximately $401 million, while operating cash flow was $503 million and inventory increased. The weaker cash conversion raised concerns about execution and valuation after a substantial prior run-up, prompting profit-taking despite the earnings and guidance beats. NetApp Free Cash Flow Decline

Hedge Funds Weigh In On NetApp

Several large investors have recently added to or reduced their stakes in the company. DV Equities LLC bought a new position in shares of NetApp in the fourth quarter worth approximately $30,000. Gen Wealth Partners Inc bought a new stake in shares of NetApp during the 4th quarter valued at $30,000. Measured Wealth Private Client Group LLC bought a new stake in shares of NetApp during the 3rd quarter valued at $35,000. Zions Bancorporation National Association UT lifted its stake in shares of NetApp by 99.5% during the 4th quarter. Zions Bancorporation National Association UT now owns 385 shares of the data storage provider’s stock valued at $41,000 after buying an additional 192 shares in the last quarter. Finally, Sunbelt Securities Inc. lifted its stake in shares of NetApp by 92.8% during the 3rd quarter. Sunbelt Securities Inc. now owns 480 shares of the data storage provider’s stock valued at $57,000 after buying an additional 231 shares in the last quarter. Hedge funds and other institutional investors own 92.17% of the company’s stock.

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.