NetApp (NASDAQ:NTAP) Announces Quarterly Earnings Results, Beats Estimates By $0.03 EPS

NetApp (NASDAQ:NTAP - Get Free Report) posted its earnings results on Thursday. The data storage provider reported $1.93 EPS for the quarter, beating the consensus estimate of $1.90 by $0.03, RTT News reports. NetApp had a return on equity of 123.63% and a net margin of 17.78%. The company had revenue of $1.73 billion for the quarter, compared to the consensus estimate of $1.72 billion. During the same quarter in the prior year, the business earned $1.80 earnings per share. The firm's revenue for the quarter was up 3.8% on a year-over-year basis. NetApp updated its FY 2026 guidance to 7.600-7.900 EPS and its Q1 2026 guidance to 1.480-1.580 EPS.

NetApp Price Performance

NASDAQ NTAP traded down $0.53 on Friday, hitting $98.68. 7,013,958 shares of the company's stock were exchanged, compared to its average volume of 1,920,207. The stock has a 50-day moving average of $90.19 and a 200-day moving average of $107.01. The company has a current ratio of 0.91, a quick ratio of 0.84 and a debt-to-equity ratio of 1.39. NetApp has a 52 week low of $71.84 and a 52 week high of $135.45. The stock has a market cap of $20.07 billion, a price-to-earnings ratio of 18.14, a P/E/G ratio of 2.45 and a beta of 1.40.

NetApp Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, July 23rd. Shareholders of record on Thursday, July 3rd will be paid a dividend of $0.52 per share. This represents a $2.08 annualized dividend and a yield of 2.11%. The ex-dividend date of this dividend is Thursday, July 3rd. NetApp's payout ratio is presently 38.52%.

Insiders Place Their Bets

In other news, CEO George Kurian sold 8,500 shares of the stock in a transaction on Monday, April 21st. The stock was sold at an average price of $81.83, for a total value of $695,555.00. Following the completion of the transaction, the chief executive officer now directly owns 249,765 shares in the company, valued at approximately $20,438,269.95. This represents a 3.29% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Anders Gustafsson purchased 2,800 shares of the company's stock in a transaction dated Thursday, March 27th. The stock was purchased at an average price of $91.00 per share, with a total value of $254,800.00. Following the completion of the purchase, the director now directly owns 6,348 shares in the company, valued at $577,668. The trade was a 78.92% increase in their position. The disclosure for this purchase can be found here. Insiders sold 28,724 shares of company stock worth $2,520,032 over the last three months. Insiders own 0.47% of the company's stock.

Institutional Inflows and Outflows

A hedge fund recently raised its stake in NetApp stock. Geneos Wealth Management Inc. raised its stake in shares of NetApp, Inc. (NASDAQ:NTAP - Free Report) by 38.3% in the 1st quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 759 shares of the data storage provider's stock after purchasing an additional 210 shares during the period. Geneos Wealth Management Inc.'s holdings in NetApp were worth $67,000 at the end of the most recent quarter. 92.17% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

Several equities analysts have recently commented on the company. TD Cowen decreased their target price on NetApp from $160.00 to $130.00 and set a "buy" rating on the stock in a research report on Friday, February 28th. Susquehanna downgraded NetApp from a "positive" rating to a "neutral" rating and decreased their target price for the company from $155.00 to $130.00 in a research report on Monday, February 10th. Bank of America raised NetApp from an "underperform" rating to a "neutral" rating and upped their target price for the company from $121.00 to $128.00 in a research report on Wednesday, February 19th. Barclays increased their price target on NetApp from $115.00 to $117.00 and gave the stock an "overweight" rating in a research report on Friday. Finally, Wall Street Zen downgraded NetApp from a "buy" rating to a "hold" rating in a research report on Friday, February 28th. One analyst has rated the stock with a sell rating, ten have issued a hold rating and seven have issued a buy rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $118.93.

About NetApp

NetApp, Inc provides cloud-led and data-centric services to manage and share data on-premises, and private and public clouds worldwide. It operates in two segments, Hybrid Cloud and Public Could. The company offers intelligent data management software, such as NetApp ONTAP, NetApp Snapshot, NetApp SnapCenter Backup Management, NetApp SnapMirror Data Replication, NetApp SnapLock Data Compliance, and storage infrastructure solutions, including NetApp All-Flash FAS series, NetApp Fabric Attached Storage, NetApp E/EF series, and NetApp StorageGRID.