NetApp (NASDAQ:NTAP) Updates FY 2027 Earnings Guidance

NetApp (NASDAQ:NTAP) updated its FY 2027 earnings guidance on Thursday. The company provided earnings per share guidance of 8.700-9.000 for the period, compared to the consensus earnings per share estimate of 8.250. The company issued revenue guidance of $7.3 billion-$7.6 billion, compared to the consensus revenue estimate of $7.2 billion. NetApp also updated its Q1 2027 guidance to 2.050-2.150 EPS.

Analyst Upgrades and Downgrades

A number of research firms have recently issued reports on NTAP. Bank of America upped their price objective on NetApp from $118.00 to $125.00 and gave the stock a “neutral” rating in a report on Wednesday, May 20th. Wedbush reiterated a “neutral” rating and issued a $115.00 price objective on shares of NetApp in a report on Wednesday, February 25th. Morgan Stanley upped their price objective on NetApp from $88.00 to $137.00 and gave the stock an “underweight” rating in a report on Friday. Citigroup cut NetApp from a “neutral” rating to a “mixed” rating in a report on Thursday, May 14th. Finally, Wall Street Zen cut NetApp from a “buy” rating to a “hold” rating in a report on Sunday, April 19th. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus price target of $124.09.

NetApp Stock Performance

NASDAQ NTAP opened at $142.40 on Friday. The company has a 50-day simple moving average of $110.99 and a two-hundred day simple moving average of $107.48. The company has a quick ratio of 1.36, a current ratio of 1.39 and a debt-to-equity ratio of 2.15. NetApp has a 12-month low of $93.69 and a 12-month high of $143.65. The firm has a market cap of $28.10 billion, a price-to-earnings ratio of 23.81, a PEG ratio of 2.60 and a beta of 1.28.

NetApp (NASDAQ:NTAP) last issued its earnings results on Thursday, May 28th. The data storage provider reported $2.03 earnings per share for the quarter, missing the consensus estimate of $2.27 by ($0.24). The company had revenue of $1.95 billion for the quarter, compared to analysts’ expectations of $1.87 billion. NetApp had a net margin of 18.07% and a return on equity of 118.11%. The company’s revenue was up 12.5% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.93 earnings per share. NetApp has set its FY 2027 guidance at 8.700-9.000 EPS and its Q1 2027 guidance at 2.050-2.150 EPS. On average, equities analysts forecast that NetApp will post 6.48 EPS for the current year.

NetApp Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, July 29th. Investors of record on Friday, July 10th will be issued a dividend of $0.52 per share. The ex-dividend date is Friday, July 10th. This represents a $2.08 annualized dividend and a yield of 1.5%. NetApp’s dividend payout ratio is currently 34.78%.

Insider Activity

In related news, EVP Elizabeth M. O’callahan sold 1,000 shares of the stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $117.73, for a total transaction of $117,730.00. Following the completion of the sale, the executive vice president directly owned 18,382 shares in the company, valued at $2,164,112.86. This represents a 5.16% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CAO Lorenzo Daniel De sold 275 shares of the stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $120.00, for a total value of $33,000.00. Following the sale, the chief accounting officer owned 1,090 shares of the company’s stock, valued at $130,800. This represents a 20.15% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 3,275 shares of company stock valued at $347,650 over the last 90 days. 0.28% of the stock is currently owned by company insiders.

Key Stories Impacting NetApp

Here are the key news stories impacting NetApp this week:

• Positive Sentiment: NetApp beat revenue expectations with $1.95 billion in quarterly sales, up 12.5% year over year, and management said execution remained strong. Article Title
• Positive Sentiment: NetApp raised its FY2027 EPS guidance to $8.70-$9.00 and revenue guidance to $7.3 billion-$7.6 billion, both above consensus, which supports the longer-term outlook. Article Title
• Positive Sentiment: The board authorized a new $1 billion share repurchase program and the company announced a quarterly dividend of $0.52 per share, both of which can help support the stock. Article Title
• Positive Sentiment: Bank of America’s Wamsi Mohan reiterated a Hold rating but lifted his price target to $150, signaling improved confidence in the shares’ upside. Article Title
• Neutral Sentiment: NetApp’s Q4 EPS of $2.03 missed the consensus estimate of $2.27, which likely limited the stock’s reaction despite the revenue beat.
• Neutral Sentiment: Recent earnings-call coverage highlighted record revenue and AI-related expansion efforts, but investors are still weighing valuation and margin concerns. Article Title
• Negative Sentiment: Analyst commentary also pointed to valuation and margin headwinds, suggesting the market may be reluctant to bid the stock much higher after its recent run. Article Title

Institutional Investors Weigh In On NetApp

Several institutional investors and hedge funds have recently bought and sold shares of NTAP. DV Equities LLC purchased a new stake in NetApp in the 4th quarter worth approximately $30,000. Gen Wealth Partners Inc purchased a new stake in NetApp in the 4th quarter worth approximately $30,000. Measured Wealth Private Client Group LLC purchased a new stake in NetApp in the 3rd quarter worth approximately $35,000. Zions Bancorporation National Association UT lifted its holdings 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 worth $41,000 after buying an additional 192 shares during the period. Finally, Sunbelt Securities Inc. lifted its holdings in NetApp by 92.8% in the 3rd quarter. Sunbelt Securities Inc. now owns 480 shares of the data storage provider’s stock worth $57,000 after buying an additional 231 shares during the period. 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.