NetApp, Inc. (NTAP) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

NetApp, Inc. (NTAP) Technology Profile & Competitive Position

NetApp, Inc. delivers hybrid cloud data services and data management solutions, empowering enterprises to optimize data across on-premises and public cloud environments. With a focus on innovation and strategic partnerships, NetApp competes in the evolving landscape of data storage and cloud computing, serving diverse industries globally.

What Is the Investment Thesis for NTAP?

The company's focus on cloud-led, data-centric solutions aligns with the increasing demand for flexible and scalable data management across diverse environments. With a P/E ratio of 25.57 and a profit margin of 18.1%, NetApp demonstrates financial stability. Key growth catalysts include the expansion of its public cloud services and the continued adoption of its ONTAP data management platform. The company's dividend yield of 1.76% provides an additional incentive for investors. However, potential risks include increasing competition in the cloud storage market and the need to adapt to evolving customer demands. Successful execution of its cloud strategy and continued innovation in data management technologies are crucial for sustained growth.

Based on FMP financials and quantitative analysis

NTAP Key Highlights

Market Cap of $36.0B reflects NetApp's significant presence in the data storage and cloud services market.

• P/E Ratio of 25.57 indicates a reasonable valuation compared to its earnings.
• Gross Margin of 70.5% demonstrates strong pricing power and efficient cost management.
• Dividend Yield of 1.76% provides a steady income stream for investors.
• Profit Margin of 18.1% showcases NetApp's ability to generate substantial profits from its revenue.

Who Are NTAP's Competitors?

NTAP is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance This table mixes two scoring engines — compare a number only with others carrying the same tag.

What Are NTAP's Key Strengths?

Strong position in the hybrid cloud market.

• Comprehensive portfolio of data management solutions.
• Established partnerships with major cloud providers.
• Experienced leadership team.

What Are NTAP's Weaknesses?

Reliance on traditional hardware sales.

• Slower growth compared to pure-play cloud companies.
• Exposure to economic cycles.
• Complex product portfolio.

What Could Drive NTAP Stock Higher?

Launch of new cloud-based data management solutions in Q3 2026.

• Expansion of strategic partnerships with major cloud providers.
• Increasing adoption of NetApp ONTAP data management platform.
• Release of updated data security and compliance features in Q4 2026.

What Are the Key Risks for NTAP?

Insider selling — insiders were net sellers of roughly $20.1M recently.

• Increasing competition in the cloud storage market.
• Economic downturns affecting IT spending.
• Cybersecurity threats targeting data infrastructure.
• Evolving customer demands requiring continuous innovation.

What Are the Growth Opportunities for NTAP?

• Expansion of Public Cloud Services: NetApp's public cloud services, including Azure NetApp Files and Amazon FSx for NetApp ONTAP, present a significant growth opportunity. The global cloud services market is projected to reach $623.3 billion in 2023, offering substantial room for expansion. By enhancing its cloud offerings and expanding its partnerships with major cloud providers, NetApp can capture a larger share of this growing market. Timeline: Ongoing, with continuous enhancements and new service offerings expected.
• Adoption of ONTAP Data Management Platform: NetApp ONTAP is a leading data management platform that enables organizations to manage and protect their data across hybrid cloud environments. The increasing complexity of data management and the need for seamless data mobility are driving demand for ONTAP. By promoting the benefits of ONTAP and expanding its customer base, NetApp can drive revenue growth. Timeline: Ongoing, with continuous updates and new features to attract more users.
• Strategic Partnerships and Alliances: NetApp's partnerships with major cloud providers, technology vendors, and channel partners are crucial for its growth strategy. By strengthening these partnerships and forming new alliances, NetApp can expand its reach and offer comprehensive solutions to its customers. Collaborative efforts can lead to new product offerings and market opportunities. Timeline: Ongoing, with continuous efforts to build and maintain strategic relationships.
• Focus on Data Security and Compliance: With increasing concerns about data security and compliance, NetApp's solutions that address these challenges are gaining traction. The global data security market is expected to reach $300 billion by 2027. By emphasizing its data security and compliance capabilities, NetApp can attract customers who prioritize data protection. Timeline: Ongoing, with continuous enhancements to security features and compliance certifications.
• Penetration into Emerging Markets: Emerging markets offer significant growth opportunities for NetApp. The increasing adoption of cloud technologies and the growing demand for data management solutions in these regions present a favorable environment for NetApp's expansion. By tailoring its offerings to meet the specific needs of emerging markets, NetApp can tap into new revenue streams. Timeline: Ongoing, with targeted marketing and sales efforts in key emerging markets.

What Are NTAP's Competitive Advantages?

• Technological Expertise: NetApp's decades of experience in data management and storage have resulted in deep technological expertise.
• Comprehensive Product Portfolio: NetApp offers a broad range of products and services that address diverse customer needs.
• Strong Partner Ecosystem: NetApp has established strong partnerships with major cloud providers and technology vendors.
• Established Customer Base: NetApp has a large and loyal customer base across various industries.

What Does NTAP Do?

NetApp, Inc., founded in 1992 and headquartered in San Jose, California, is a global cloud-led, data-centric software company. It empowers organizations to lead with data in the age of accelerated digital transformation. NetApp operates through two primary segments: Hybrid Cloud and Public Cloud. The Hybrid Cloud segment provides solutions that enable customers to manage and share data across on-premises, private, and public cloud environments. This includes intelligent data management software like NetApp ONTAP, data replication tools, and storage infrastructure solutions such as All-Flash FAS series and FlexPod. The Public Cloud segment offers cloud storage and data services, including Cloud Volumes ONTAP, Azure NetApp Files, and Amazon FSx for NetApp ONTAP, along with cloud operations services like NetApp Cloud Insights and Spot. NetApp's comprehensive portfolio also includes application-aware data management services under the NetApp Astra name, as well as professional and support services, encompassing strategic consulting, managed services, and implementation assistance. The company serves a wide array of industries, including energy, financial services, government, technology, healthcare, manufacturing, and media, through a direct sales force and a robust ecosystem of partners. NetApp's evolution has been marked by continuous innovation in data management and storage technologies, solidifying its position as a key player in the hybrid cloud market.

What Products and Services Does NTAP Offer?

• Provides hybrid cloud data services to manage data across on-premises and public cloud environments.
• Offers intelligent data management software, including NetApp ONTAP and SnapMirror.
• Delivers storage infrastructure solutions, such as All-Flash FAS series and FlexPod.
• Provides cloud storage and data services, including Azure NetApp Files and Amazon FSx for NetApp ONTAP.
• Offers cloud operations services, such as NetApp Cloud Insights and Spot.
• Provides application-aware data management service under the NetApp Astra name.
• Offers professional and support services, including strategic consulting and managed services.

How Does NTAP Make Money?

• Sells data management software and storage infrastructure solutions to enterprises.
• Offers cloud-based data services on a subscription basis.
• Provides professional and support services to help customers implement and manage their data infrastructure.
• Generates revenue through direct sales and an ecosystem of partners.

What Industry Does NTAP Operate In?

NetApp operates in the competitive computer hardware industry, which is undergoing a significant shift towards cloud-based solutions. The increasing volume of data and the need for efficient data management are driving growth in the hybrid cloud market. Companies like HPQ, Flex Ltd., and Jabil Inc. also compete in this space. NetApp differentiates itself through its focus on data-centric solutions and its comprehensive portfolio of software and services. The industry is expected to continue growing as organizations increasingly adopt cloud technologies to optimize their data infrastructure.

Who Are NTAP's Key Customers?

• Energy companies requiring data management for exploration and production.
• Financial service institutions needing secure and compliant data storage.
• Government agencies seeking reliable data management solutions.
• Technology and internet companies managing large volumes of data.
• Healthcare organizations requiring secure storage of patient data.

NetApp, Inc. (NTAP) Valuation Context

Valued at $36.0B, NTAP is classified as a large-cap stock. Analyst price targets span from $170.00 to $219.00, with a consensus of $194.22. At the current price of $183.60, that implies approximately 6% upside potential. Relative to its peer group, NTAP's quantitative score of 89/100 is above the peer average of 55/100.

NTAP Revenue & Earnings Trend

In Q1 FY2027, NTAP generated $2.02B in top-line revenue, marking a sequential increase of 4.0%. The company recorded net income of $375.0M, with diluted EPS of $1.88. Revenue has increased across the last three reported quarters, suggesting sustained momentum for this large-cap Technology company. Across the four most recent quarters, NTAP averaged $1.77 in diluted EPS.

Company Profile

NetApp, Inc. operates in the Computer Hardware industry within the Technology sector. It is headquartered in San Jose, US. The company is led by CEO George Kurian. NTAP has traded publicly since 1995.

Return on equity for NetApp, Inc. stands at 114.2%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 11.9%, showing how much profit it generates from its asset base. NTAP trades at a trailing price-to-earnings ratio of 25.57, below the Technology sector average of ~32.70x. Its free cash flow yield is 4.7%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.44 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 3.2%, the inverse of the P/E and a quick read on earnings relative to price.

NetApp, Inc.'s Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 3.70 places it in the safe zone, indicating low near-term bankruptcy risk.

NetApp, Inc. has beaten Wall Street's EPS estimate in 6 of its last 8 reported quarters — a consistent record of delivering on expectations. Reported results have landed about 6.0% above estimates on average.

Over the past six months, NetApp, Inc. insiders filed 100 SEC Form 4 transactions — 64 sales and 36 purchases. On net that is roughly 85K shares acquired (about $20.1M) — insiders putting money in tends to read as conviction.

NTAP Financials

NTAP earnings history & estimates →

NTAP Latest News

NTAP Analyst Consensus

NTAP MoonshotScore

What Investors Ask About NetApp, Inc. (NTAP) — Technology

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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