NetApp (NTAP) AI Stock Analysis

• Market Cap: $21.96B
• Dividend Yield: 1.89%
• Average Volume (3M): 2.17M
• Price to Earnings (P/E): 19.1
• Beta (1Y): 1.50
• Revenue Growth: 2.64%
• EPS Growth: 4.12%
• Country: US
• Employees: 11,800
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): 2.05
• Shares Outstanding: 198,060,350
• 10 Day Avg. Volume: 1,976,168
• 30 Day Avg. Volume: 2,174,673
• PEG Ratio: 0.68
• Price to Book (P/B): 17.60
• Price to Sales (P/S): 2.79
• P/FCF Ratio: 13.68
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 3.51
• Enterprise Value/Gross Profit: 4.99
• Enterprise Value/Ebitda: 13.46
• 1Y Price Target: $123.23
• Price Target Upside: 12.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: $126.00 ▲(14.71% Upside)

NetApp's overall stock score reflects strong financial performance and positive earnings call sentiment, driven by growth in cloud and AI solutions. The high leverage and mixed technical indicators present some risks, but the company's strategic focus on high-margin segments supports a favorable outlook.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability.

Cloud and AI Solutions

The shift towards cloud and AI solutions enhances NetApp's competitive edge, aligning with industry trends and driving higher margins.

Cash Flow Generation

Strong cash flow generation provides financial flexibility for investments and debt management, supporting long-term growth.

Negative Factors

High Debt Levels

Significant leverage could pose risks, especially in a rising interest rate environment, potentially impacting financial stability.

Cash Flow Concerns

Weaker cash generation may limit the company's ability to invest in growth opportunities and manage debt effectively.

US Public Sector Weakness

Challenges in the US public sector could hinder revenue growth, affecting overall performance and market position.

NetApp Business Overview & Revenue Model

Company Description

NetApp, Inc. (NTAP) is a multinational data management and storage company headquartered in Sunnyvale, California. Founded in 1992, NetApp specializes in cloud data services and storage solutions that help organizations manage their data across various environments, including on-premises, hybrid, and public clouds. The company offers a range of products and services, including data storage systems, cloud data management services, and data protection solutions, aimed at enabling businesses to optimize their data assets for better performance and efficiency.

How the Company Makes Money

NetApp generates revenue primarily through the sale of its hardware and software products, along with subscription services for cloud-based data management solutions. Key revenue streams include the direct sales of data storage systems, software licenses, and cloud services. The company also earns recurring revenue from maintenance and support contracts, as well as subscriptions for its cloud services. Strategic partnerships with major cloud providers like Microsoft Azure, Amazon Web Services, and Google Cloud enhance its market reach and contribute to its earnings by integrating its solutions with these platforms. Additionally, NetApp's focus on innovative technologies such as artificial intelligence and data analytics further positions it to capture growth in the evolving data management landscape.

NetApp Financial Statement Overview

Summary

NetApp exhibits strong financial performance with robust revenue growth of 27.4% and healthy profitability margins. However, the high debt-to-equity ratio of 3.36 suggests a need for careful management of financial leverage.

Income Statement

NetApp's income statement shows strong profitability with a gross profit margin of 70.19% and a net profit margin of 18.05% for the TTM. The company has demonstrated significant revenue growth of 27.4% in the TTM period, indicating robust demand for its products. EBIT and EBITDA margins are healthy at 22.02% and 25.72%, respectively, reflecting efficient operational management. However, the net profit margin has slightly decreased from previous periods, suggesting some pressure on net earnings.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 3.36, indicating significant leverage, which could pose a risk if not managed carefully. Return on equity is impressive at 123.03%, showcasing strong profitability relative to shareholder equity. The equity ratio is relatively low, suggesting a higher reliance on debt financing. Overall, while profitability metrics are strong, the high leverage warrants cautious monitoring.

Cash Flow

NetApp's cash flow statement highlights a solid free cash flow growth rate of 23.92% in the TTM, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 0.32, and the free cash flow to net income ratio is 0.89, reflecting efficient conversion of income into cash. Despite previous fluctuations in free cash flow growth, the recent positive trend is encouraging.

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	3.25B	3.07B	4.13B	4.60B
Total Debt	3.49B	2.65B	2.68B	2.94B	2.75B
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: Negative
• Last Price: 109.84
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NTAP, the sentiment is Negative. The current price of 109.84 is below the 20-day moving average (MA) of 113.93, below the 50-day MA of 113.85, and above the 200-day MA of 105.34, indicating a neutral trend. The MACD of -0.52 indicates Positive momentum. The RSI at 41.28 is Neutral, neither overbought nor oversold. The STOCH value of 26.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NTAP.

NetApp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WDC	77 Outperform	$60.43B	25.99	31.48%	0.18%	-16.35%	316.56%
NTAP	76 Outperform	$21.96B	19.12	125.35%	1.89%	2.64%	4.12%
STX	68 Neutral	$60.40B	36.30	―	1.03%	31.56%	106.00%
PSTG	64 Neutral	$22.23B	177.59	9.27%	―	13.18%	-0.92%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
HPQ	61 Neutral	$21.27B	8.64	―	5.09%	4.09%	-5.77%
SMCI	58 Neutral	$18.55B	24.65	12.79%	―	12.22%	-48.34%

NetApp Corporate Events

NetApp’s Strong Start to Fiscal 2026: Earnings Call Insights

NetApp Inc. kicked off fiscal year 2026 with a strong earnings call, showcasing a balanced sentiment. The company exceeded revenue guidance and reported significant growth in its all-flash and cloud services. However, challenges were noted in the US public sector and EMEA, alongside a decline in product revenue. Despite these hurdles, NetApp highlighted robust cash flow and strategic wins in AI infrastructure, painting a mixed yet optimistic picture for investors.

NetApp Reports Solid Start to Fiscal 2026

NetApp Inc., a leader in intelligent data infrastructure, specializes in unified data storage and integrated data services, offering solutions that enable seamless hybrid and multicloud transformations.