NetApp (NTAP)
NASDAQInformation TechnologySoftware - InfrastructureSnapshot 2026-07-07
$165.78+1.36%
Close 2026-07-07 · 1-day change
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Track NTAP free→Warn: Management is running behind on a stated commitment.
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%
Standing thesis, reviewed periodically — not a price target or advice.
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.
Stated in 3 of last 3 quarters. Gross profit was $1,227 million in 2025-Q2 and $1,098 million in 2025-Q1, reflecting strong margin management. Management's guidance for 2026-Q3 expects gross margins to be between 69.7% and 70.7%, indicating a focus on maintaining these levels. The trajectory shows consistent emphasis on margin strength.
“Management expects consolidated gross margins to be in the range of 69.7% - 70.7%.”
“Gross profit was $1,227 million, maintaining strong margins.”
“Gross profit was $1,098 million, reflecting strong margin management.”
Breaks if: Operating margin falls below 23%
Maintain operating margins through disciplined cost management and efficiency.
Stated in 3 of last 3 quarters. Operating income was $399 million in 2025-Q2 and $309 million in 2025-Q1, reflecting a focus on sustaining margins. Management's guidance for 2026-Q3 expects operating margins between 23.3% and 24.3%, indicating continued emphasis on margin management. The trajectory shows consistent focus on maintaining operating efficiency.
“Operating margins are expected to be in the range of 23.3% - 24.3%.”
“Operating income was $399 million, reflecting margin focus.”
“Operating income was $309 million, indicating margin management.”
Breaks if: Revenue falls below $7.0 billion in FY27
Drive revenue growth through strategic initiatives and market expansion.
Stated in 3 of last 3 quarters. Revenue was $1,705 million in 2025-Q2 and $1,559 million in 2025-Q1, showing a growth trajectory. Management's guidance for 2026-Q3 expects revenues between $7.325 billion and $7.575 billion, indicating continued focus on growth. The trajectory shows consistent emphasis on revenue expansion.
“Net revenues are expected to be in the range of $7.325 billion - $7.575 billion.”
“Revenue was $1,705 million, reflecting growth initiatives.”
“Revenue was $1,559 million, indicating growth focus.”