NetApp (NASDAQ:NTAP) Posts Quarterly Earnings Results, Beats Expectations By $0.05 EPS

Posted by Grant Hamersma on Feb 27th, 2026

NetApp (NASDAQ:NTAP – Get Free Report) issued its quarterly earnings data on Thursday. The data storage provider reported $2.12 EPS for the quarter, beating analysts’ consensus estimates of $2.07 by $0.05, FiscalAI reports. NetApp had a return on equity of 121.28% and a net margin of 17.73%.The business had revenue of $1.71 billion for the quarter, compared to analyst estimates of $1.70 billion. During the same quarter in the prior year, the firm posted $1.91 EPS. The firm’s revenue for the quarter was up 4.4% on a year-over-year basis. NetApp updated its Q4 2026 guidance to 2.210-2.310 EPS and its FY 2026 guidance to 7.920-8.020 EPS.

Here are the key takeaways from NetApp’s conference call:

Q3 revenue of $1.71 billion (up 4% YoY; 6% ex‑Spot) and record operating income with non‑GAAP EPS of $2.12, reflecting strong execution and operational discipline.
Early momentum in AI: AFX began shipments with notable wins (neoclouds, financial services, semiconductor) and the AI Data Engine engaged ~300 customers, with AIDE slated for general availability in Q4.
All‑Flash Array revenue hit a record $1.0 billion (up 11% YoY) while Keystone (storage‑as‑a‑service) grew ~65% YoY and public cloud services (ex‑Spot) rose 17% YoY with very high gross margins.
Rising memory/NAND prices are pressuring product gross margins; NetApp has raised prices, may raise again, and noted mix‑ and market‑purchase impacts that weighed on product margin sequentially.
Guidance: Q4 revenue of $1.87 billion ±$75M (midpoint +8% YoY) and FY26 revenue midpoint $6.847 billion (+4% YoY) with gross margin guidance around 70–71% and FY EPS of $7.92–$8.02.

NetApp Stock Performance

NTAP stock traded down $2.00 during trading on Friday, reaching $97.14. 2,665,789 shares of the stock were exchanged, compared to its average volume of 2,506,979. NetApp has a twelve month low of $71.84 and a twelve month high of $126.66. The company has a current ratio of 1.34, a quick ratio of 1.30 and a debt-to-equity ratio of 2.52. The company has a market capitalization of $19.24 billion, a P/E ratio of 16.89, a price-to-earnings-growth ratio of 3.53 and a beta of 1.38. The stock has a 50 day simple moving average of $103.40 and a 200-day simple moving average of $111.32.

NetApp Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, April 22nd. Investors of record on Friday, April 3rd will be given a dividend of $0.52 per share. The ex-dividend date of this dividend is Thursday, April 2nd. This represents a $2.08 dividend on an annualized basis and a yield of 2.1%. NetApp’s dividend payout ratio (DPR) is 36.17%.

Analysts Set New Price Targets

NTAP has been the topic of a number of recent analyst reports. Weiss Ratings reissued a “hold (c+)” rating on shares of NetApp in a research report on Thursday, January 22nd. Wells Fargo & Company raised their target price on shares of NetApp from $100.00 to $115.00 and gave the company a “positive” rating in a research note on Wednesday, November 26th. UBS Group boosted their target price on shares of NetApp from $114.00 to $120.00 and gave the stock a “neutral” rating in a research report on Wednesday, November 26th. Northland Securities set a $137.00 price target on shares of NetApp and gave the company an “outperform” rating in a report on Wednesday, November 26th. Finally, Wedbush reiterated a “neutral” rating and issued a $115.00 price objective on shares of NetApp in a research note on Wednesday. One analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and nine have issued a Hold rating to the company. Based on data from MarketBeat.com, NetApp presently has an average rating of “Moderate Buy” and a consensus price target of $123.21.

Get Our Latest Analysis on NTAP

Insider Activity at NetApp

In other news, EVP Elizabeth M. O’callahan sold 1,000 shares of NetApp stock in a transaction that occurred on Tuesday, February 10th. The stock was sold at an average price of $103.45, for a total transaction of $103,450.00. Following the sale, the executive vice president owned 20,075 shares of the company’s stock, valued at approximately $2,076,758.75. This trade represents a 4.74% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 0.28% of the company’s stock.

Institutional Investors Weigh In On NetApp

Institutional investors have recently bought and sold shares of the business. Transamerica Financial Advisors LLC increased its holdings in shares of NetApp by 16.8% during the fourth quarter. Transamerica Financial Advisors LLC now owns 833 shares of the data storage provider’s stock worth $89,000 after buying an additional 120 shares in the last quarter. Voleon Capital Management LP grew its position in NetApp by 3.9% during the 3rd quarter. Voleon Capital Management LP now owns 3,849 shares of the data storage provider’s stock worth $456,000 after acquiring an additional 143 shares during the last quarter. Hilltop Holdings Inc. increased its holdings in NetApp by 3.5% during the 3rd quarter. Hilltop Holdings Inc. now owns 5,404 shares of the data storage provider’s stock valued at $640,000 after purchasing an additional 184 shares in the last quarter. Zions Bancorporation National Association UT raised its position in NetApp by 99.5% in the 4th quarter. Zions Bancorporation National Association UT now owns 385 shares of the data storage provider’s stock valued at $41,000 after purchasing an additional 192 shares during the last quarter. Finally, Coldstream Capital Management Inc. boosted its stake in NetApp by 4.8% in the third quarter. Coldstream Capital Management Inc. now owns 4,320 shares of the data storage provider’s stock worth $512,000 after purchasing an additional 199 shares in the last quarter. Institutional investors and hedge funds own 92.17% of the company’s stock.

Trending Headlines about NetApp

Here are the key news stories impacting NetApp this week:

Positive Sentiment: Q3 results beat expectations: NTAP reported $2.12 EPS on $1.71B revenue (both above consensus), driven by demand for AI-ready infrastructure and all‑flash systems — a clear near-term revenue/EPS positive. NetApp Q3 Earnings Beat Estimates on Healthy Top-Line Growth
Positive Sentiment: Management raised guidance: FY26 EPS guide (7.920–8.020) and Q4 guide (2.210–2.310) topped consensus, signaling confidence in AI/cloud demand and improving margin trajectory. NetApp surges on earnings beat and raised guidance
Positive Sentiment: Company provided an 8% Q4 revenue growth target and highlighted accelerating AI and cloud momentum — a directional positive for subscription and high‑margin product mix. NetApp outlines 8% Q4 revenue growth target as AI and cloud momentum accelerates
Positive Sentiment: Dividend announced: NTAP declared a quarterly dividend of $0.52 (≈2.1% yield), which supports income investors and signals cash‑flow confidence. (Record Apr 3; pay Apr 22.)
Neutral Sentiment: Earnings call and materials available — read the transcript, highlights and slide deck for management detail on product mix, subscription trends and margin assumptions. NetApp, Inc. (NTAP) Q3 2026 Earnings Call Transcript NetApp Inc (NTAP) Q3 2026 Earnings Call Highlights
Neutral Sentiment: Analysts are parsing key metrics vs. estimates (margins, deferred revenue and cloud subscription mix); these will determine sustainability of the beat. Compared to Estimates, NetApp (NTAP) Q3 Earnings: A Look at Key Metrics
Negative Sentiment: Strategy risk / valuation questions: analysis raises the question whether NetApp’s shift to AI‑focused cloud subscriptions materially alters the investment case — any execution missteps or slower subscription growth could compress multiples. Is NetApp’s Shift Toward AI-Focused Cloud Subscriptions Altering The Investment Case For NetApp (NTAP)?

NetApp Company Profile

(Get Free Report)

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.