NetApp’s Mixed Financial Outlook: Hold Rating Amid Revenue Challenges and Margin Strength

NetApp (NTAP – Research Report), the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Wamsi Mohan from Bank of America Securities reiterated a Hold rating on the stock and has a $121.00 price target.

Wamsi Mohan has given his Hold rating due to a combination of factors impacting NetApp’s financial outlook. The company’s revenue guidance for fiscal year 2026 is slightly below market expectations, reflecting ongoing global economic uncertainties. Despite this, NetApp’s margin guidance surpasses expectations, driven by a strategic shift towards higher-margin products such as All-Flash and Public Cloud offerings.
Additionally, while the divestiture of Spot presents a revenue headwind, it is expected to enhance Public Cloud gross margins. Concerns also persist regarding potential impacts from tariffs and government spending uncertainties in both the U.S. and international markets. These mixed signals, with weaker near-term revenue prospects balanced by stronger margins, underpin Mohan’s decision to maintain a Neutral stance on the stock.

Based on the recent corporate insider activity of 85 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of NTAP in relation to earlier this year.