NetApp (NTAP) AI Stock Analysis

• Market Cap: $21.37B
• Dividend Yield: 1.95%
• Average Volume (3M): 2.25M
• Price to Earnings (P/E): 18.8
• Beta (1Y): 1.37
• Revenue Growth: 5.02%
• EPS Growth: 22.19%
• Country: US
• Employees: 11,800
• Sector: Technology
• Sector Strength: 91
• Industry: Computer Hardware
• EPS (TTM): 1.93
• Shares Outstanding: 200,366,170
• 10 Day Avg. Volume: 1,478,093
• 30 Day Avg. Volume: 2,248,445
• PEG Ratio: 3.75
• Price to Book (P/B): 20.04
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.38
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 0.82
• Enterprise Value/Gross Profit: 4.62
• Enterprise Value/Ebitda: 3.19
• 1Y Price Target: $112.69
• Price Target Upside: 5.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 79 Outperform
• Price Target: $119.00 ▲(11.82%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 Opportunities

NetApp is seeing good initial deal traction in AI and believes momentum will build as enterprise AI opportunities become more concrete.

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 business mix is evolving toward margin-rich growth areas, including all-flash arrays and public cloud storage services, which should support mid- to high-single-digit top-line growth with expanding margins.

Negative Factors

Guidance Shortfall

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

Revenue Consistency

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

Sector Uncertainty

Uncertainty in the US Public sector and EMEA remains a concern for the business.

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 showcases strong financial performance with consistent revenue growth and high profitability. However, the balance sheet indicates increased financial leverage which requires attention. Cash flow generation remains robust, supporting strategic investments and shareholder returns.

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
EBITDA	1.34B	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: 106.42
• 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 106.42 is above the 20-day moving average (MA) of 104.54, above the 50-day MA of 100.43, and below the 200-day MA of 108.47, indicating a neutral trend. The MACD of 1.86 indicates Positive momentum. The RSI at 60.78 is Neutral, neither overbought nor oversold. The STOCH value of 65.13 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	$21.37B	18.80	108.51%	1.95%	5.02%	22.19%
SMCI	77 Outperform	$29.31B	27.61	21.03%	―	82.10%	6.35%
PSTG	76 Outperform	$19.02B	154.90	9.76%	―	10.85%	30.85%
WDC	63 Neutral	$22.34B	12.17	28.45%	0.15%	21.22%	―
HPQ	61 Neutral	$24.06B	9.92	84.33%	4.52%	2.08%	-12.41%
STX	61 Neutral	$30.14B	20.88	-109.27%	2.03%	36.29%	―
Sector *	50 Neutral	C$2.94B	1.84	-63.12%	2.59%	11.24%	-12.42%

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.