NetApp (NTAP)
NASDAQInformation TechnologyComputer HardwareSnapshot 2026-09-04
$185.59+0.11%
Close 2026-09-04 · 1-day change
NASDAQInformation TechnologyComputer HardwareSnapshot 2026-09-04
Warn: Primary pillar under pressure — Deliver EPS near $6.66 in FY27: EPS $6.66 vs $6.66 target.
NetApp grows revenue about 14% a year, driven by cloud data services. Profit margins stay strong near 24%. The company buys back stock, returning cash to shareholders. Recent earnings beats show solid execution.
Revenue growth could slow below 7%, hurting the business. Profit margins might fall below 23%, pressuring profits. Market competition and soft guidance raise risks.
The price is about 18% above our fair value near $141, reflecting roughly 14% revenue growth. Our fair value is 24% below the Street median, so the market prices in solid growth but not overly optimistic.
Breaks if: EPS falls below $6.0 in FY27
Breaks if: Gross margin falls below 68%
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a focus on technology growth through AI and cloud expansion. The current thesis state is intact, as recent earnings performance has been strong and management priorities are being met.
The market appears to have priced in a neutral valuation, with NTAP considered cheap compared to its peers. There is a slight expectations gap, indicating that the market does not fully account for the company's recent momentum and growth potential.
Fundamentals are likely to remain strong, given management's commitment to revenue growth and margin maintenance. However, there is a moderate risk due to the potential for earnings guidance cuts, which could negatively impact sentiment.
The thesis hinges on several factors, including the Fed's interest rate decisions and the performance of sector peers like DELL and SNDK. Any cuts in guidance from management could also significantly affect the outlook.
The most important moves since the prior daily snapshot.
Company momentum rose by 60.0 points (from -22.1 to 37.9).
Valuation fell by 14.3 points (from 57.8 to 43.5).
Yes, our read has strengthened. The latest earnings beat shows strong revenue growth driven by AI demand. Management expects sustained growth from AI and data modernization projects. There are no new threats identified that could weaken this outlook.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Focus on sustaining high gross margins through cost management and operational efficiency.
Breaks if: Operating margin falls below 23%
Breaks if: Revenue falls below $7.0 billion in FY27
Overall, NTAP's performance and strategic focus suggest a stable outlook over the next 1 to 3 years. Not investment advice.