NetApp (NTAP) AI Stock Analysis

• Market Cap: $20.57B
• Dividend Yield: 1.89%
• Average Volume (3M): 1.73M
• Price to Earnings (P/E): 18.1
• Beta (1Y): 1.49
• 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: 2,270,818
• 30 Day Avg. Volume: 1,730,931
• 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: 1.04
• Enterprise Value/Revenue: 3.22
• Enterprise Value/Gross Profit: 4.59
• Enterprise Value/Ebitda: 12.37
• 1Y Price Target: $121.77
• Price Target Upside: 17.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18
• EPS Forecast (FY): 7.91
• Revenue Forecast (FY): $6.77B

• Rating: 70 Outperform
• Price Target: $104.00 ▲(0.15% Upside)

The score is driven primarily by strong underlying financial performance and a constructive earnings outlook (record margins, solid EPS, and continued cloud/AI growth). These positives are partly offset by weak technical momentum and elevated leverage risk, while valuation and dividend are supportive but not a major catalyst.

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. provides cloud-led and data-centric services to manage and share data on-premises, and private and public clouds worldwide. It operates in two segments, Hybrid Cloud and Public Could. The company offers intelligent data management software, such as NetApp ONTAP, NetApp Snapshot, NetApp SnapCenter Backup Management, NetApp SnapMirror Data Replication, NetApp SnapLock Data Compliance, NetApp ElementOS software, and NetApp SANtricity software; and storage infrastructure solutions, including NetApp All-Flash FAS series, NetApp Fabric Attached Storage, NetApp FlexPod, NetApp E/EF series, NetApp StorageGRID, and NetApp SolidFire. It also provides cloud storage and data services comprising NetApp Cloud Volumes ONTAP, Azure NetApp Files, Amazon FSx for NetApp ONTAP, NetApp Cloud Volumes Service for Google Cloud, NetApp Cloud Sync, NetApp Cloud Tiering, NetApp Cloud Backup, NetApp Cloud Data Sense, and NetApp Cloud Volumes Edge Cache; and cloud operations services, such as NetApp Cloud Insights, Spot Ocean Kubernetes Suite, Spot Security, Spot Eco, and Spot CloudCheckr. In addition, the company offers application-aware data management service under the NetApp Astra name; and professional and support services, such as strategic consulting, professional, managed, and support services. Further, it provides assessment, design, implementation, and migration services. The company serves the energy, financial service, government, technology, internet, life science, healthcare service, manufacturing, media, entertainment, animation, video postproduction, and telecommunication markets through a direct sales force and an ecosystem of partners. NetApp, Inc. was incorporated in 1992 and is headquartered in San Jose, California.

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

Strong profitability (around 70% gross margin and ~18% net margin) and very strong TTM revenue and free cash flow growth support the score. The main offset is balance-sheet risk from high leverage (debt-to-equity 2.82) and a relatively low equity ratio, which raises financial risk despite strong ROE.

Income Statement

NetApp shows strong profitability with a consistent gross profit margin around 70% and a solid net profit margin of approximately 18% in the TTM period. The company has demonstrated impressive revenue growth, particularly in the TTM period with a 71.3% increase, indicating robust demand for its products. However, the slight decline in gross profit margin compared to previous periods suggests potential cost pressures.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 2.82 in the TTM period, indicating significant leverage, which could pose risks in a rising interest rate environment. Despite this, the company maintains a strong return on equity of 120%, reflecting efficient use of equity to generate profits. The equity ratio is relatively low, suggesting a reliance on debt financing.

Cash Flow

NetApp's cash flow statement highlights a healthy free cash flow growth of 108.6% in the TTM period, showcasing strong cash generation capabilities. The operating cash flow to net income ratio of 0.51 indicates a solid conversion of income to cash. However, the free cash flow to net income ratio of 0.90 suggests that not all earnings are translating into free cash flow, which could be a point of concern.

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: 103.84
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 103.84 is below the 20-day moving average (MA) of 107.57, below the 50-day MA of 110.11, and below the 200-day MA of 106.20, indicating a bearish trend. The MACD of -1.53 indicates Negative momentum. The RSI at 36.70 is Neutral, neither overbought nor oversold. The STOCH value of 46.49 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	80 Outperform	$75.73B	32.30	31.48%	0.18%	-16.35%	316.56%
NTAP	70 Outperform	$20.57B	18.07	125.35%	1.89%	2.64%	4.12%
STX	68 Neutral	$69.67B	41.88	―	1.02%	31.56%	106.00%
PSTG	64 Neutral	$24.07B	192.45	9.27%	―	13.18%	-0.92%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
HPQ	61 Neutral	$18.70B	7.68	―	5.09%	4.09%	-5.77%
SMCI	57 Neutral	$19.49B	26.16	12.79%	―	12.22%	-48.34%

NetApp Corporate Events

NetApp Adds Independent Director to Strengthen AI Strategy

On January 8, 2026, NetApp’s board expanded its size from nine to ten members and appointed Paul Fipps, President of Global Customer Operations at ServiceNow, as a new independent director, a move formally announced in a January 12, 2026 press release from the company’s San Jose headquarters. Fipps, a veteran executive with more than 20 years’ experience in technology-enabled growth, digital customer transformation, and AI solution deployment at ServiceNow and Under Armour, will join NetApp’s non-employee director compensation program and standard indemnification framework, further strengthening a board in which nine of ten directors are independent and half have been added in the past five years. NetApp’s leadership highlighted that Fipps’s background in aligning global sales, customer success, partner ecosystems, and AI-driven digital experiences is expected to sharpen execution and innovation as the company seeks to consolidate its position as a trusted provider of AI-ready data infrastructure, with implications for accelerated growth and enhanced support for customers’ AI and digital transformation initiatives worldwide.

The most recent analyst rating on (NTAP) stock is a Buy with a $130.00 price target. To see the full list of analyst forecasts on NetApp stock, see the NTAP Stock Forecast page.