NetApp, Inc.
NetApp, Inc. (NTAP) is a US-based provider of data storage systems and cloud data services, helping organisations store, manage and protect data across on-premise and cloud environments. In recent years NetApp has shifted from primarily selling hardware to emphasising software, cloud integrations and subscription-based services — a move that aims to grow recurring revenue and improve margins but requires execution. Investors should watch subscription growth, software mix, gross margins, free cash flow and customer retention, as these signal the success of the cloud transition. Key strengths include long-standing enterprise relationships and partnerships with major cloud providers, while risks include cyclical IT spending, strong competition from cloud hyperscalers and software rivals, and execution risk during the transition. This is general informational content only and not personalised advice; values can fall as well as rise. Consider your objectives and consult a qualified financial adviser before investing.
Why It's Moving
NetApp's Record Margins and Earnings Beat Fuel Optimism for 2026 Growth
- EPS of $2.12 topped estimates by a penny, with revenue at $1.71 billion showing steady 4% year-over-year growth and strength outside one-time spot deals.
- Operating margins soared to a record 31.1%, up 110 basis points, highlighting profitability gains from recurring cloud and subscription revenue streams.
- Management touted fiscal 2026 as their strongest year yet, amid rising AI demand that's bolstering demand for NetApp's data management solutions.
NetApp's Record Margins and Earnings Beat Fuel Optimism for 2026 Growth
- EPS of $2.12 topped estimates by a penny, with revenue at $1.71 billion showing steady 4% year-over-year growth and strength outside one-time spot deals.
- Operating margins soared to a record 31.1%, up 110 basis points, highlighting profitability gains from recurring cloud and subscription revenue streams.
- Management touted fiscal 2026 as their strongest year yet, amid rising AI demand that's bolstering demand for NetApp's data management solutions.
When is the next earnings date for NetApp, Inc. (NTAP)?
NetApp's next earnings report is estimated for May 28, 2026, though the company has not officially announced the specific date. This report will cover the company's Q3 fiscal year 2026 results. Based on historical patterns, the earnings announcement is expected to occur after market close, followed by a conference call for investors. Analysts are currently modeling earnings per share of approximately $2.25 for this quarter.
Stock Performance Snapshot
Analyst Rating
Analysts recommend buying NetApp's stock with a target price of $123.62, indicating strong growth potential.
Financial Health
NetApp is showing strong revenue and cash flow, with solid profit margins indicating good financial performance.
Dividend
NetApp's average dividend yield of 2.21% offers a decent return for dividend-seeking investors. If you invested $1000, you would be paid $22.10 a year in dividends (based on the last 12 months).
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Explore BasketWhy You’ll Want to Watch This Stock
Shift to Subscriptions
NetApp’s move from hardware to software and subscriptions can smooth revenue and lift margins over time, though transition execution and timing can vary.
Cloud Partnerships Matter
Integrations with AWS, Azure and Google Cloud open hybrid-cloud opportunities, but competition from cloud-native providers and hyperscalers remains a material challenge.
Margin & Cash Flow
Investors often watch gross margins, free cash flow and subscription mix as signs of durable profitability; remember these metrics can fluctuate with IT spending cycles.
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