Upside case
Bull case
$275+72.0%
NTAP would need investors to value it at roughly 34x earnings — about 14x more generous than today's 20x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewHoldUpdated Jun 18, 2026
NetApp, Inc. (NTAP) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Hold
Covering
71
analysts
26 bullish · 9 bearish · 71 covering NTAP
Strong Buy
0
Buy
26
Hold
36
Sell
9
Strong Sell
0
Consensus Target
$167
+4.6% vs today
Scenario Range
$131 – $275
Model bear to bull value window
Coverage
71
Published analyst ratings
Valuation Context
20.0x
Forward P/E · Market cap $31.6B
NTAP price targets
Three scenarios for where NTAP stock could go
Current
~$160
Confidence
53 / 100
Updated
Jun 18, 2026
Where we are now
Current · $160
Bear
$131
Base
$209
Bull
$275
Market caseClosest to today
Base case
$209+30.6%
At 26x on FY1 earnings, the base case reflects a reasonable but not stretched valuation. It prices in continued growth without assuming an exceptional setup.
Stress case
Bear case
$131-17.7%
If investor confidence fades or macro conditions deteriorate, a 4x multiple contraction could push NTAP down roughly 18% from where it trades now.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
NetApp, Inc.
NTAP · NASDAQTechnologyComputer HardwareApril year-end
NetApp is a data management and storage company that provides hybrid cloud infrastructure solutions for enterprises. It generates revenue primarily through software subscriptions (~60% of total) and hardware sales (~40%), with its cloud services segment growing rapidly. The company's key advantage is its unified data platform—ONTAP—which allows seamless data management across on-premises and multiple public clouds, creating significant switching costs for enterprise customers.
Market Cap
$31.6B
Revenue TTM
$6.9B
Net Income TTM
$1.3B
Net Margin
18.4%
NTAP Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
92%Exceptional
12 quarters tracked
Revenue Beat Rate
83%Exceptional
vs consensus estimates
Avg EPS Surprise
+5.8%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q3 2025
Q4 2025
Q1 2026
Q2 2026
Last 4 Quarters
EPS beats: 4 of 4Q3 2025
EPS
$1.55/$1.54
Revenue
$1.6B/$1.5B
Q4 2025
EPS
$2.05/$1.88
Revenue
$1.7B/$1.7B
Q1 2026
EPS
$2.12/$2.06
Revenue
$1.7B/$1.7B
Q2 2026
EPS
$2.43/$2.27
Revenue
$1.9B/$1.9B
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q3 2025 | $1.55/$1.54 | +0.6% | $1.6B/$1.5B | +0.7% |
| Q4 2025 | $2.05/$1.88 | +9.0% | $1.7B/$1.7B | +1.0% |
| Q1 2026 | $2.12/$2.06 | +2.9% | $1.7B/$1.7B | +1.0% |
| Q2 2026 | $2.43/$2.27 | +7.0% | $1.9B/$1.9B | +4.1% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$7.3B
+5.9% YoY
FY2
$7.7B
+5.1% YoY
EPS Outlook
FY1
$7.43
+15.9% YoY
FY2
$8.21
+10.4% YoY
Trailing FCF (TTM)$1.9B
FCF Margin: 27.0%
Next Earnings
—
Expected EPS
—
Expected Revenue
—
NTAP beat EPS estimates in 4 of 4 tracked quarters. A perfect track record raises the bar for the upcoming report.
NTAP Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2026
Total disclosed revenue $6.9B
Product Mix
Latest annual revenue by segment or product family
Product
46.1%
YoY unavailable
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
Americas
50.6%
+4.7% YoY
Tap, hover, or focus a slice to inspect segment detail.
Product is the largest disclosed segment at 46.1% of FY 2026 revenue, with no year-over-year comparison yet.
Americas is the largest reported region at 50.6%, up 4.7% YoY.
NTAP Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Cheap versus peers
Fair value est. $322 — implies +101.4% from today's price.
Upside to Fair Value
101.4%
potential upside
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
NTAP
25.1x
vs
S&P 500
24.4x
In line with benchmark
vs Technology Trailing P/E
NTAP
25.1x
vs
Technology
29.0x
13% discount
vs NTAP 5Y Avg P/E
Today
25.1x
vs
5Y Average
16.8x
+50% premium
Forward PE
20.0x
S&P 500
18.8x
+6%
Technology
22.3x
-10%
5Y Avg
—
—
Trailing PE
25.1x
S&P 500
24.4x
+3%
Technology
29.0x
-13%
5Y Avg
16.8x
+50%
PEG Ratio
1.73x
S&P 500
1.66x
+4%
Technology
1.51x
+15%
5Y Avg
—
—
EV/EBITDA
16.1x
S&P 500
15.2x
+6%
Technology
16.6x
-3%
5Y Avg
12.2x
+32%
Price/FCF
16.9x
S&P 500
20.7x
-18%
Technology
19.2x
-12%
5Y Avg
14.6x
+16%
Price/Sales
4.6x
S&P 500
3.1x
+48%
Technology
2.4x
+87%
5Y Avg
2.9x
+60%
Dividend Yield
1.30%
S&P 500
1.91%
-32%
Technology
1.11%
+17%
5Y Avg
2.37%
-45%
| Metric | NTAP | S&P 500 | Technology | 5Y Avg NTAP |
|---|---|---|---|---|
| Forward PE | 20.0x | 18.8x | 22.3x-10% | — |
| Trailing PE | 25.1x | 24.4x | 29.0x-13% | 16.8x+50% |
| PEG Ratio | 1.73x | 1.66x | 1.51x+15% | — |
| EV/EBITDA | 16.1x | 15.2x | 16.6x | 12.2x+32% |
| Price/FCF | 16.9x | 20.7x-18% | 19.2x-12% | 14.6x+16% |
| Price/Sales | 4.6x | 3.1x+48% | 2.4x+87% | 2.9x+60% |
| Dividend Yield | 1.30% | 1.91% | 1.11% | 2.37% |
NTAP trades above S&P 500 benchmarks on 1 of 6 measured multiples — appears modestly priced relative to the S&P 500 on most measures.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolNTAP Financial Health
Verdict
Exceptional
NTAP generates $1.9B in free cash flow at a 27.0% margin — 124.4% ROIC signals a durable competitive advantage · returns 4.3% of market cap to shareholders annually.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$6.9B
Revenue Growth
TTM vs prior year
+5.4%
Gross Margin
Gross profit as a share of revenue
70.7%
Operating Margin
Operating income divided by revenue
24.1%
Net Margin
Net income divided by revenue
18.4%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$6.41
Free Cash Flow (TTM)
Cash generation after capex
$1.9B
FCF Margin
FCF as share of revenue — the primary cash quality signal
27.0%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
124.4%
ROA
Return on assets, trailing twelve months
12.8%
Cash & Equivalents
Liquid assets on the balance sheet
$3.6B
Net Cash
Cash exceeds total debt — no net leverage
$1.1B
Debt Serviceability
Net debt as a multiple of annual free cash flow
Net cash ✓
ROE
Return on equity, trailing twelve months
114.2%
Shareholder Returns
How capital is returned to owners
Total shareholder yield
4.3%
Dividend
1.3%
Buyback
3.0%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$950M
Dividend / Share
Annualized trailing dividend per share
$2.08
Payout Ratio
Share of earnings distributed as dividends
32.4%
Shares Outstanding
Declining as buybacks retire shares
198M
All figures from the trailing twelve months. ROIC uses invested capital (equity + net debt).
Open full ratios pageNTAP Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated June 18, 2026
High Risk
Cloud competition
NetApp faces intense competition from major public cloud providers offering embedded storage services, potentially disrupting its market position.
Medium
Revenue growth risks
Analyst consensus implies limited upside (+3.6%), suggesting concerns over revenue growth and market saturation.
High Risk
Operational risks
NetApp disclosed 39 risk factors in its recent earnings report, indicating significant operational and financial challenges.
Medium
AI adoption uncertainty
While NetApp promotes AI innovation, the actual adoption and monetization of AI-driven solutions remain uncertain.
Lower
Valuation concerns
DCF valuation and earnings quality scores may reflect overvaluation or earnings sustainability risks.
Medium
Cybersecurity threats
Despite emphasizing cyber resilience, NetApp remains vulnerable to cybersecurity threats impacting customer trust.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why NTAP Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated June 18, 2026
Cloud-embedded storage leadership
NetApp is the only enterprise-grade storage service embedded into major public cloud providers, positioning it uniquely in the market.
Intelligent data infrastructure
The company provides unified data storage and integrated services, helping customers modernize infrastructure and transform cloud strategies.
AI innovation enabler
NetApp's solutions support AI innovation, making it a key player in the growing AI-driven data management space.
Attractive valuation metrics
With a forward P/E of 12.12, NetApp appears undervalued relative to its growth potential in the data infrastructure market.
Cyber resilience solutions
The company offers robust data security features, addressing increasing enterprise needs for cyber resilience in storage solutions.
Enterprise cloud transformation
NetApp helps organizations optimize their cloud operations (CloudOps), capitalizing on the shift to hybrid and multi-cloud environments.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
NTAP Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$159.71
52W Range Position
67%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$93.69
+70.5% from the low
52-Week High
$192.83
-17.2% from the high
1 Month
+32.41%
3 Month
+58.49%
YTD
+50.0%
1 Year
+55.4%
3Y CAGR
+29.9%
5Y CAGR
+15.4%
10Y CAGR
+20.2%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
NTAP vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
20.0x
vs 37.6x median
-47% below peer median
Revenue Growth
+5.9%
vs +6.6% median
-11% below peer median
Net Margin
18.4%
vs 6.3% median
+194% above peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
NTA NTAP NetApp, Inc. | $31.6B | 20.0x | +5.9% | 18.4% | Hold | +4.6% |
PST PSTG Everpure, Inc | $28.5B | 37.6x | +6.6% | 5.9% | Buy | -0.3% |
HPE HPE Hewlett Packard Enterprise Company | $62.8B | 13.9x | +8.3% | 3.9% | Hold | +46.1% |
DEL DELL Dell Technologies Inc. | $272.3B | 41.1x | +5.1% | 6.3% | Buy | +9.6% |
IBM IBM International Business Machines Corporation | $233.7B | 20.0x | +3.7% | 15.6% | Hold | +25.0% |
STX STX Seagate Technology Holdings plc | $233.4B | 71.8x | +9.2% | 21.6% | Buy | -29.5% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
NTAP Dividend and Capital Return
NTAP returns capital mainly through $950M/year in buybacks (3.0% buyback yield), with a modest 1.30% dividend — combining for 4.3% total shareholder yield.
Dividend SustainableFCF Well Covered
Total Shareholder Yield
4.3%
Dividend + buyback return per year
Buyback Yield
3.0%
Dividend Yield
1.30%
Payout Ratio
32.4%
How NTAP Splits Its Return
Div 1.30%
Buyback 3.0%
Dividend 1.30%Buybacks 3.0%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$2.08
Growth Streak
Consecutive years of dividend increases
2Y
3Y Div CAGR
1.3%
5Y Div CAGR
1.6%
Ex-Dividend Date
—
Payment Cadence
Quarterly
5 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$950M
Estimated Shares Retired
6M
Approx. Share Reduction
3.0%
Shares Outstanding
Current diluted share count from the screening snapshot
198M
At 3.0%/year, buybacks mechanically lift EPS even with flat earnings — each remaining share represents a slightly larger piece of the company.
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2026 | $1.56 | — | 4.4% | 6.3% |
| 2025 | $2.08 | +2.0% | 6.1% | 8.4% |
| 2024 | $2.04 | +2.0% | 4.1% | 6.0% |
| 2023 | $2.00 | 0.0% | 6.1% | 9.3% |
| 2022 | $2.00 | +2.0% | 3.6% | 6.2% |
FAQ
7 questionsNTAP Investor Questions
Common questions answered from live analyst data and company financials.
01Is NetApp, Inc. (NTAP) stock a buy or sell in 2026?
NetApp, Inc. (NTAP) is rated Hold by Wall Street analysts as of 2026. Of 71 analysts covering the stock, 26 rate it Buy or Strong Buy, 36 rate it Hold, and 9 rate it Sell or Strong Sell. The consensus 12-month price target is $167, implying +4.6% from the current price of $160. The bear case scenario is $131 and the bull case is $275.
02What is the NTAP stock price target for 2026?
The Wall Street consensus price target for NTAP is $167 based on 71 analyst estimates. The high-end target is $200 (+25.2% from today), and the low-end target is $89 (-44.3%). The base case model target is $209.
03Is NetApp, Inc. (NTAP) stock overvalued in 2026?
NTAP trades at 20.0x times forward earnings. The stock's valuation is broadly in line with the broader market. Based on current multiples versus the peer group, the relative model signals cheap versus peers. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for NetApp, Inc. (NTAP) stock in 2026?
The primary risks for NTAP in 2026 are: (1) Cloud competition — NetApp faces intense competition from major public cloud providers offering embedded storage services, potentially disrupting its market position. (2) Operational risks — NetApp disclosed 39 risk factors in its recent earnings report, indicating significant operational and financial challenges. (3) Revenue growth risks — Analyst consensus implies limited upside (+3. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is NetApp, Inc.'s revenue and earnings forecast?
Analyst consensus estimates NTAP will report consensus revenue of $7.3B (+5.9% year-over-year) and EPS of $7.43 (+15.9% year-over-year) for the upcoming fiscal year. The following year, analysts project $7.7B in revenue.
06When does NetApp, Inc. (NTAP) report its next earnings?
A confirmed upcoming earnings date for NTAP is not yet available. Check the Earnings section above for the most recent quarterly report dates and forward estimates.
07How much free cash flow does NetApp, Inc. generate?
NetApp, Inc. (NTAP) generated $1.9B in free cash flow over the trailing twelve months — a free cash flow margin of 27.0%. NTAP returns capital to shareholders through dividends (1.3% yield) and share repurchases ($950M TTM).