NetApp (NTAP) AI Stock Analysis

• Market Cap: $21.84B
• Dividend Yield: 1.92%
• Average Volume (3M): 1.54M
• Price to Earnings (P/E): 19.2
• Beta (1Y): 1.41
• Revenue Growth: 5.02%
• EPS Growth: 22.19%
• Country: US
• Employees: 11,800
• Sector: Technology
• Sector Strength: 87
• Industry: Computer Hardware
• EPS (TTM): 1.93
• Shares Outstanding: 200,098,880
• 10 Day Avg. Volume: 1,626,063
• 30 Day Avg. Volume: 1,537,375
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.82
• Enterprise Value/Revenue: 2.72
• Enterprise Value/Gross Profit: 3.87
• Enterprise Value/Ebitda: 10.57
• 1Y Price Target: $116.08
• Price Target Upside: 7.70% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 78 Outperform
• Price Target: $124.00 ▲(15.05% Upside)

NetApp's overall stock score of 78 reflects its strong financial performance and positive earnings call sentiment, which are the most significant factors. The technical analysis supports a bullish outlook, although caution is advised due to potential overbought conditions. Valuation is reasonable, balancing growth prospects with income generation.

Positive Factors

AI and Data Infrastructure

NetApp is positioning its portfolio with an 'intelligent infrastructure' approach aimed at scalable AI data operations.

Market Position

Analyst maintains an Overweight rating on NTAP shares due to its leading market position to gain share from peers following a refreshed product portfolio.

Product Portfolio

NetApp's transition to higher-margin all-flash arrays from hybrid and disk-based arrays is progressing well, with two-thirds of its product business now coming from these systems.

Negative Factors

Guidance and Expectations

The FY26 revenue guidance of nearly +3% y/y growth was softer relative to consensus expectations, influenced by macro uncertainty due to tariffs and headwinds in public sector exposure in Europe and the US.

Market Uncertainties

The uncertainties associated with the core Enterprise spend and US public projects are causing a much lower growth rate.

Revenue Consistency

NetApp has experienced choppy revenue performance over the past five years, causing investors to seek more consistent top-line execution.

NetApp Business Overview & Revenue Model

Company Description

NetApp, Inc. (NTAP) is a global data management and cloud storage solutions company headquartered in Sunnyvale, California. Established in 1992, NetApp specializes in providing data storage and management systems, data services, and hybrid cloud solutions to enterprises across various sectors. The company's core products include storage systems, data management software, and cloud services that enable organizations to store, manage, and protect their data efficiently. NetApp's offerings are designed to help businesses accelerate their data-driven transformations and optimize their IT infrastructures.

How the Company Makes Money

NetApp generates revenue primarily through the sale of hardware, software, and cloud services. Its key revenue streams include the sale of storage and data management products, which encompass hardware appliances and associated software licenses. The company also earns significant revenue from subscription-based cloud services that enable customers to leverage hybrid cloud environments. Additionally, NetApp provides professional services and support, which contribute to its overall earnings. Strategic partnerships with major cloud providers, such as Microsoft Azure and Amazon Web Services, further enhance NetApp's market presence and create additional revenue opportunities through integrated solutions. The company's focus on innovation and expansion into emerging technologies, such as AI and machine learning, also plays a crucial role in driving its financial performance.

NetApp Financial Statement Overview

Summary

NetApp shows strong financial performance with consistent revenue growth and robust profitability. The company maintains a solid gross profit margin and net profit improvement. However, increased leverage and a low equity ratio highlight areas for attention.

Income Statement

NetApp demonstrates a strong financial performance with consistent revenue growth and robust profitability. The gross profit margin has remained strong, averaging around 70% over recent years, indicating effective cost management. Net profit margins improved significantly in the latest year, reaching approximately 18%, reflecting enhanced operational efficiency. EBIT and EBITDA margins remain solid, highlighting efficient core operations.

Balance Sheet

The balance sheet reveals a well-managed capital structure, though with some areas for improvement. The debt-to-equity ratio has increased over the past year, suggesting a higher financial leverage, but it remains manageable. The return on equity improved to roughly 114%, indicating strong shareholder returns. However, the equity ratio is a concern, as it is relatively low, suggesting a high reliance on debt financing.

Cash Flow

NetApp's cash flow generation is strong, with a healthy free cash flow growth rate, particularly visible in the past year. The operating cash flow to net income ratio consistently exceeds 1, demonstrating effective conversion of earnings into cash. The free cash flow to net income ratio suggests robust cash generation relative to profits, supporting ongoing investments and shareholder returns.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.57B	6.27B	6.36B	6.32B	5.74B
Gross Profit	4.61B	4.43B	4.21B	4.22B	3.81B
EBITDA	1.69B	1.58B	1.43B	1.36B	1.29B
Net Income	1.19B	986.00M	1.27B	937.00M	730.00M
Balance Sheet
Total Assets	10.82B	9.89B	9.82B	10.03B	9.36B
Cash, Cash Equivalents and Short-Term Investments	3.85B	3.26B	3.07B	4.13B	4.60B
Total Debt	3.49B	2.65B	2.39B	2.64B	2.63B
Total Liabilities	9.78B	8.74B	8.66B	9.19B	8.68B
Stockholders Equity	1.04B	1.15B	1.16B	838.00M	685.00M
Cash Flow
Free Cash Flow	1.34B	1.53B	868.00M	985.00M	1.17B
Operating Cash Flow	1.51B	1.69B	1.11B	1.21B	1.33B
Investing Cash Flow	147.00M	-735.00M	-1.39B	-561.00M	21.00M
Financing Cash Flow	-828.00M	-1.34B	-1.51B	-1.02B	444.00M

NetApp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 107.78
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NTAP, the sentiment is Positive. The current price of 107.78 is above the 20-day moving average (MA) of 106.11, above the 50-day MA of 105.38, and above the 200-day MA of 106.22, indicating a bullish trend. The MACD of 1.12 indicates Negative momentum. The RSI at 55.30 is Neutral, neither overbought nor oversold. The STOCH value of 70.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NTAP.

NetApp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NTAP	78 Outperform	$21.84B	19.24	108.51%	1.92%	5.02%	22.19%
STX	76 Outperform	$33.59B	23.33	-109.27%	1.81%	38.86%	337.22%
WDC	74 Outperform	$26.32B	15.72	25.98%	0.13%	2.12%	―
PSTG	71 Outperform	$18.70B	149.43	9.76%	―	10.85%	30.85%
HPQ	69 Neutral	$25.36B	10.41	84.33%	4.32%	2.08%	-12.41%
SMCI	66 Neutral	$25.81B	25.71	17.90%	―	47.04%	-17.89%
Sector *	61 Neutral	$35.38B	6.84	-10.82%	1.97%	8.74%	-8.28%

NetApp Corporate Events

NetApp EVP Harvinder Bhela Announces Departure

On May 23, 2025, Harvinder Bhela announced his decision to step down from his role as Executive Vice President and Chief Product Officer at NetApp, effective June 20, 2025, with plans to assist in a smooth transition of his responsibilities. Additionally, on May 22, 2025, NetApp’s Board of Directors approved an additional $1.1 billion for stock repurchases, highlighting the company’s strong financial position and commitment to returning value to shareholders. NetApp reported record financial results for the fourth quarter and fiscal year 2025, with significant increases in net revenues, profitability, and market share in all-flash storage and cloud services. The company also announced several product innovations and strategic partnerships, positioning itself for continued growth and leadership in the enterprise AI market.