NetApp (NTAP) AI Stock Analysis

• Market Cap: $20.88B
• Dividend Yield: 2.07%
• Average Volume (3M): 2.29M
• Price to Earnings (P/E): 18.4
• Beta (1Y): 1.40
• Revenue Growth: 5.02%
• EPS Growth: 22.19%
• Country: US
• Employees: 11,800
• Sector: Technology
• Sector Strength: 84
• Industry: Computer Hardware
• EPS (TTM): 1.93
• Shares Outstanding: 200,366,170
• 10 Day Avg. Volume: 2,649,620
• 30 Day Avg. Volume: 2,292,173
• PEG Ratio: 0.27
• Price to Book (P/B): 11.77
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.72
• Enterprise Value/Market Cap: 0.77
• Enterprise Value/Revenue: 0.62
• Enterprise Value/Gross Profit: 3.50
• Enterprise Value/Ebitda: 2.42
• 1Y Price Target: $112.17
• Price Target Upside: 7.65% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 14

• Rating: 79 Outperform
• Price Target: $119.00 ▲(14.20%Upside)

NetApp's overall score is bolstered by strong financial performance and earnings growth, particularly in cloud and AI sectors. While technical indicators show moderate momentum, valuation remains reasonable. Corporate events and strategic initiatives further enhance its growth outlook, despite some geopolitical and macroeconomic headwinds.

Positive Factors

AI Market Position

Longer-term, NetApp is well-positioned within enterprise AI market and management remains confident in executing against its portfolio as AI continues gains momentum.

Financial Performance

NetApp showcased robust results delivering record levels of revenues, operating profits, and EPS, driven by continued market share gains and robust growth across Public Cloud.

Stock Buyback

Management announced $1.1 billion buyback authorization increase.

Negative Factors

Economic Uncertainty

FY guidance missed on conservatism amidst significant macro uncertainty, paired with ongoing US Public Sector spending friction and slower economic activity in EMEA.

Growth 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.

Spending Caution

Management noted signals of increased spending caution, particularly for Europe.

NetApp Business Overview & Revenue Model

Company Description

NetApp, Inc. (NTAP) is a global technology company that specializes in data management and cloud storage solutions. Headquartered in San Jose, California, NetApp provides a comprehensive portfolio of software, systems, and services that enable organizations to store, manage, and protect their data. The company serves a diverse range of sectors including financial services, healthcare, government, and technology, offering products such as all-flash storage arrays, hybrid cloud solutions, and data management software.

How the Company Makes Money

NetApp generates revenue primarily through the sale of its data management and storage solutions. The company's business model is built around selling hardware products like all-flash and hybrid flash storage systems, as well as software products that enhance data management capabilities. Additionally, NetApp offers a range of services including professional services, support, and training that contribute to its earnings. A significant portion of its revenue also comes from its cloud data services, which provide data management solutions for public, private, and hybrid cloud environments. Key partnerships with leading cloud providers such as Amazon Web Services, Microsoft Azure, and Google Cloud Platform are crucial to NetApp's ability to deliver integrated solutions and expand its market reach. These partnerships, along with its extensive channel partner network, play a significant role in driving sales and increasing market penetration.

NetApp Financial Statement Overview

Summary

NetApp demonstrates strong financial performance with consistent revenue growth, robust profitability, and effective cash flow management. The company maintains a solid gross profit margin and has shown improvements in net profit margins. However, the increased debt-to-equity ratio is a concern, indicating higher financial leverage.

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
Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 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
	EBIT
1.34B	1.21B	1.02B	1.16B	1.03B
	EBITDA
1.34B	1.58B	1.43B	1.36B	1.29B
	Net Income Common Stockholders
1.19B	986.00M	1.27B	937.00M	730.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.85B	3.26B	3.07B	4.13B	4.60B
	Total Assets
10.82B	9.89B	9.82B	10.03B	9.36B
	Total Debt
3.23B	2.65B	2.39B	2.64B	2.63B
	Net Debt
493.00M	749.00M	73.00M	-1.50B	-1.96B
	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: 104.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 Positive. The current price of 104.2 is above the 20-day moving average (MA) of 101.56, above the 50-day MA of 93.57, and below the 200-day MA of 109.88, indicating a neutral trend. The MACD of 2.20 indicates Positive momentum. The RSI at 61.12 is Neutral, neither overbought nor oversold. The STOCH value of 48.43 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	79 Outperform	$20.88B	18.36	108.51%	2.07%	5.02%	22.19%
SMCI	78 Outperform	$26.07B	24.11	21.03%	―	82.10%	6.35%
PSTG	71 Outperform	$16.88B	138.99	9.76%	―	10.85%	30.85%
WDC	70 Neutral	$20.03B	10.92	28.45%	0.72%	21.22%	―
STX	65 Neutral	$27.01B	18.39	-109.27%	2.26%	36.29%	―
Sector *	62 Neutral	$11.97B	10.29	-7.47%	2.99%	7.32%	-8.06%
HPQ	61 Neutral	$23.03B	9.45	84.33%	4.86%	2.08%	-12.41%

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.

The most recent analyst rating on (NTAP) stock is a Hold with a $120.00 price target. To see the full list of analyst forecasts on NetApp stock, see the NTAP Stock Forecast page.

NetApp Expands Board with New Director Appointment

On March 21, 2025, NetApp’s Board of Directors expanded its board from nine to ten members and appointed Frank Pelzer as a new director. Pelzer, who will serve on the Audit Committee, is recognized as a financial expert and brings extensive experience in modern financial operations within cloud and as-a-service companies. His appointment is expected to drive NetApp’s strategic initiatives and enhance shareholder value as the company continues to innovate in data and intelligence.