NetApp (NASDAQ:NTAP) Releases FY 2027 Earnings Guidance

Key Points

• NetApp raised its FY 2027 outlook, now guiding for EPS of $8.70-$9.00 and revenue of $7.3 billion-$7.6 billion, both above Wall Street expectations.
• The company also lifted Q1 2027 guidance to EPS of $2.05-$2.15, signaling a stronger near-term outlook than analysts had projected.
• Recent results and corporate actions were also constructive, including a revenue beat in Q4 and a new $1 billion share repurchase program that suggests management confidence in cash generation.

NetApp (NASDAQ:NTAP - Get Free Report) updated its FY 2027 earnings guidance on Thursday. The company provided earnings per share (EPS) guidance of 8.700-9.000 for the period, compared to the consensus 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.

Wall Street Analyst Weigh In

Several analysts have weighed in on the stock. Wall Street Zen lowered shares of NetApp from a "buy" rating to a "hold" rating in a research note on Sunday, April 19th. Weiss Ratings lowered shares of NetApp from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Friday, March 13th. Bank of America boosted their target price on shares of NetApp from $118.00 to $125.00 and gave the company a "neutral" rating in a research note on Wednesday, May 20th. Wedbush reiterated a "neutral" rating and set a $115.00 target price on shares of NetApp in a research note on Wednesday, February 25th. Finally, JPMorgan Chase & Co. lowered shares of NetApp from an "overweight" rating to a "neutral" rating and lowered their target price for the company from $125.00 to $110.00 in a research note on Thursday, April 16th. One investment analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and eight have assigned a Hold rating to the company. According to MarketBeat.com, NetApp currently has an average rating of "Hold" and a consensus target price of $122.27.

NetApp Stock Performance

Shares of NetApp stock traded down $0.34 during trading on Thursday, hitting $142.40. 5,991,844 shares of the stock were exchanged, compared to its average volume of 2,505,100. The stock's fifty day moving average is $110.18 and its 200 day moving average is $107.28. The stock has a market cap of $28.10 billion, a PE ratio of 23.81, a P/E/G ratio of 2.53 and a beta of 1.28. The company has a debt-to-equity ratio of 2.15, a quick ratio of 1.36 and a current ratio of 1.39. NetApp has a 12 month low of $93.69 and a 12 month high of $143.65.

NetApp (NASDAQ:NTAP - Get Free Report) last released its quarterly earnings results on Thursday, February 26th. The data storage provider reported $2.12 EPS for the quarter, topping the consensus estimate of $2.07 by $0.05. The business had revenue of $1.71 billion during the quarter, compared to analyst estimates of $1.70 billion. NetApp had a net margin of 18.07% and a return on equity of 118.11%. The company's quarterly revenue was up 4.4% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.91 earnings per share. As a group, sell-side analysts anticipate that NetApp will post 6.48 EPS for the current year.

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 shares were sold at an average price of $117.73, for a total value of $117,730.00. Following the completion of the transaction, the executive vice president 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 filing with the SEC, which is available at this hyperlink. 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 transaction of $33,000.00. Following the completion of the transaction, 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 position. The disclosure for this sale is available in the SEC filing. Insiders have sold 3,275 shares of company stock valued at $347,650 in the last 90 days. Insiders own 0.28% of the company's stock.

Key Stories Impacting NetApp

Here are the key news stories impacting NetApp this week:

• Positive Sentiment: NetApp posted fiscal Q4 2026 results that topped revenue expectations, with revenue of $1.95 billion versus the $1.87 billion consensus. Article Title
• Positive Sentiment: The company issued upbeat guidance for Q1 2027, with EPS guidance of 2.05-2.15 and revenue guidance of $1.8 billion-$1.9 billion, both above Wall Street estimates.
• Positive Sentiment: NetApp also raised full-year FY 2027 guidance to EPS of 8.70-9.00 and revenue of $7.3 billion-$7.6 billion, ahead of consensus.
• Positive Sentiment: The board authorized a new $1.0 billion share repurchase program, which can help support earnings per share and signals confidence in cash generation. Article Title
• Neutral Sentiment: Despite the strong report, the quarter was mixed on profitability versus expectations: EPS came in below consensus in one third-party summary, which may be creating some volatility around the results. Article Title
• Neutral Sentiment: Recent analyst commentary remains mixed, with at least one underweight rating still on the stock, even as price targets have been revised higher by some firms.
• Negative Sentiment: Some market coverage notes that NTAP has faced concerns around slower IT spending and cloud-related pressure, which may limit upside if the outlook cools later in the year. Article Title

Hedge Funds Weigh In On NetApp

Institutional investors and hedge funds have recently bought and sold shares of the stock. DV Equities LLC bought a new position in NetApp in the 4th quarter valued at about $30,000. Gen Wealth Partners Inc bought a new position in NetApp in the 4th quarter valued at about $30,000. Measured Wealth Private Client Group LLC bought a new position in NetApp in the 3rd quarter valued at about $35,000. Zions Bancorporation National Association UT grew 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 buying an additional 192 shares in the last quarter. Finally, Sunbelt Securities Inc. grew its position in NetApp by 92.8% in 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. 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.

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