Upside case
Bull case
$153+33.7%
NTAP would need investors to value it at roughly 19x earnings — about 5x more generous than today's 14x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewHoldUpdated May 1, 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
70
analysts
26 bullish · 9 bearish · 70 covering NTAP
Strong Buy
0
Buy
26
Hold
35
Sell
9
Strong Sell
0
Consensus Target
$121
+5.6% vs today
Scenario Range
$40 – $153
Model bear to bull value window
Coverage
70
Published analyst ratings
Valuation Context
14.3x
Forward P/E · Market cap $22.6B
NTAP price targets
Three scenarios for where NTAP stock could go
Current
~$114
Confidence
61 / 100
Updated
May 1, 2026
Where we are now
Current · $114
Bear
$40
Base
$145
Bull
$153
Market caseClosest to today
Base case
$145+27.4%
At 18x 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
$40-65.2%
If investor confidence fades or macro conditions deteriorate, a 9x multiple contraction could push NTAP down roughly 65% 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
$22.6B
Revenue TTM
$6.7B
Net Income TTM
$1.2B
Net Margin
18.1%
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
+6.4%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q2 2025
Q3 2025
Q4 2025
Q1 2026
Last 4 Quarters
EPS beats: 4 of 4Q2 2025
EPS
$1.93/$1.90
Revenue
$1.7B/$1.7B
Q3 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
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q2 2025 | $1.93/$1.90 | +1.6% | $1.7B/$1.7B | +0.5% |
| 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% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$6.9B
+3.0% YoY
FY2
$7.2B
+4.2% YoY
EPS Outlook
FY1
$6.91
+14.0% YoY
FY2
$7.23
+4.6% YoY
Trailing FCF (TTM)$1.3B
FCF Margin: 19.9%
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 2025
Total disclosed revenue $6.6B
Product Mix
Latest annual revenue by segment or product family
Hybrid Cloud Segment
89.9%
+4.4% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
Americas
50.9%
+4.8% YoY
Tap, hover, or focus a slice to inspect segment detail.
Hybrid Cloud Segment is the largest disclosed segment at 89.9% of FY 2025 revenue, up 4.4% YoY.
Americas is the largest reported region at 50.9%, up 4.8% 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
Significantly Undervalued
Fair value est. $197 — implies +75.7% from today's price.
Upside to Fair Value
75.7%
potential upside
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
NTAP
20.1x
vs
S&P 500
25.1x
20% discount
vs Technology Trailing P/E
NTAP
20.1x
vs
Technology
26.7x
25% discount
vs NTAP 5Y Avg P/E
Today
20.1x
vs
5Y Average
18.0x
+12% premium
Forward PE
14.3x
S&P 500
19.1x
-25%
Technology
22.1x
-35%
5Y Avg
—
—
Trailing PE
20.1x
S&P 500
25.1x
-20%
Technology
26.7x
-25%
5Y Avg
18.0x
+12%
PEG Ratio
2.01x
S&P 500
1.72x
+17%
Technology
1.52x
+32%
5Y Avg
—
—
EV/EBITDA
14.8x
S&P 500
15.2x
-3%
Technology
17.5x
-15%
5Y Avg
12.3x
+20%
Price/FCF
16.9x
S&P 500
21.1x
-20%
Technology
19.5x
-13%
5Y Avg
15.1x
+12%
Price/Sales
3.4x
S&P 500
3.1x
+10%
Technology
2.4x
+41%
5Y Avg
2.8x
+22%
Dividend Yield
1.78%
S&P 500
1.87%
-5%
Technology
1.16%
+53%
5Y Avg
2.50%
-29%
| Metric | NTAP | S&P 500 | Technology | 5Y Avg NTAP |
|---|---|---|---|---|
| Forward PE | 14.3x | 19.1x-25% | 22.1x-35% | — |
| Trailing PE | 20.1x | 25.1x-20% | 26.7x-25% | 18.0x+12% |
| PEG Ratio | 2.01x | 1.72x+17% | 1.52x+32% | — |
| EV/EBITDA | 14.8x | 15.2x | 17.5x-15% | 12.3x+20% |
| Price/FCF | 16.9x | 21.1x-20% | 19.5x-13% | 15.1x+12% |
| Price/Sales | 3.4x | 3.1x | 2.4x+41% | 2.8x+22% |
| Dividend Yield | 1.78% | 1.87% | 1.16% | 2.50% |
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 $1.3B in free cash flow at a 19.9% margin — 54.4% ROIC signals a durable competitive advantage · returns 6.9% of market cap to shareholders annually.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$6.7B
Revenue Growth
TTM vs prior year
+3.1%
Gross Margin
Gross profit as a share of revenue
70.5%
Operating Margin
Operating income divided by revenue
22.2%
Net Margin
Net income divided by revenue
18.1%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$6.06
Free Cash Flow (TTM)
Cash generation after capex
$1.3B
FCF Margin
FCF as share of revenue — the primary cash quality signal
19.9%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
54.4%
ROA
Return on assets, trailing twelve months
12.2%
Cash & Equivalents
Liquid assets on the balance sheet
$2.7B
Net Debt
Total debt minus cash
$749M
Debt Serviceability
Net debt as a multiple of annual free cash flow
0.6× FCF
~0.6 years to full repayment at current FCF run-rate
ROE
Return on equity, trailing twelve months
104.7%
Shareholder Returns
How capital is returned to owners
Total shareholder yield
6.9%
Dividend
1.8%
Buyback
5.1%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$1.1B
Dividend / Share
Annualized trailing dividend per share
$2.03
Payout Ratio
Share of earnings distributed as dividends
35.8%
Shares Outstanding
Declining as buybacks retire shares
209M
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 April 29, 2026
High Risk
ERP System Implementation
NetApp faces significant risks related to maintaining effective internal financial reporting controls due to the implementation of a new ERP system. This could lead to financial misstatements and a decline in investor confidence.
High Risk
External Storage Market Decline
There is a risk of a terminal decline in the external storage market due to increased reliance on public cloud services. This shift could severely impact NetApp's revenue and market position.
High Risk
Potential Underperformance
Missing the fiscal year 2025 $1 billion Annual Recurring Revenue (ARR) target could lead to underperformance in stock value. This risk is compounded by declining free cash flow and heightened competition.
Medium
Intense Competition
The data management and storage solutions market is highly competitive, with established players and emerging startups. NetApp risks losing market share to competitors offering innovative or more cost-effective solutions.
Medium
Technological Disruption
Rapid technological advancements pose a threat to NetApp's existing product lines, necessitating continuous innovation and adaptation to maintain market relevance.
Medium
Reliance on Core Segments
NetApp's heavy reliance on its Hybrid Cloud segment for revenue exposes the company to market fluctuations and shifts in technology trends. Diversification into areas like Public Cloud services is crucial for long-term stability.
Lower
Moderate Revenue Growth
NetApp has shown only stable, moderate revenue growth, lagging behind the sector's momentum. This cautious growth rate over the past three years may affect investor sentiment.
Lower
Valuation Concerns
While some analyses suggest NetApp is fairly valued, others note that its current P/E ratio may indicate a slightly overvalued stock based on historical averages, especially without corresponding revenue growth.
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 April 29, 2026
Strong Revenue and Earnings Growth
NetApp has demonstrated solid revenue growth, with a 4.85% increase in fiscal year 2025, reaching $6.57 billion, and a significant 20.28% increase in earnings to $1.19 billion. Recent quarterly reports show continued year-over-year revenue growth, with Q3 2026 revenue at $1.71 billion, up 4% year-over-year.
High Gross Margins and Profitability
The company boasts strong gross margins, often exceeding 70%, and has seen improvements in operating and net profit margins. Its Return on Equity (ROE) is also notably high, indicating efficient capital use.
Momentum in Annual Recurring Revenue
NetApp has shown strong momentum in its all-flash portfolio, with a 19% increase in annual recurring revenue (ARR). This growth reflects the company's successful strategy in expanding its subscription-based offerings.
Strategic Partnerships Enhance Growth
NetApp is well-positioned to benefit from the growing demand for AI-driven storage solutions and continues to see rapid growth in its public cloud business. Its strategic integration with companies like Google Cloud and Nutanix enhances its hybrid cloud offerings and expands its reach.
Gaining All-Flash Market Share
The company continues to gain market share in the all-flash storage market, with record all-flash array revenue reported. This trend indicates strong demand for its innovative storage solutions.
Attractive Valuation for Investors
Several analyses suggest NetApp is trading at a discount compared to its industry peers and the broader market, presenting an attractive entry point for value investors. Its Price-to-Earnings (P/E) ratio is noted as being lower than industry and S&P 500 averages.
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
$114.14
52W Range Position
65%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$91.15
+25.2% from the low
52-Week High
$126.66
-9.9% from the high
1 Month
+13.12%
3 Month
+14.61%
YTD
+7.2%
1 Year
+22.6%
3Y CAGR
+21.4%
5Y CAGR
+8.3%
10Y CAGR
+17.5%
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
14.3x
vs 21.7x median
-34% below peer median
Revenue Growth
+3.0%
vs +11.7% median
-75% below peer median
Net Margin
18.1%
vs 5.2% median
+246% above peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
NTA NTAP NetApp, Inc. | $22.6B | 14.3x | +3.0% | 18.1% | Hold | +5.6% |
PST PSTG Pure Storage, Inc. | $22.0B | 29.2x | +16.4% | 5.1% | Buy | +29.4% |
HPE HPE Hewlett Packard Enterprise Company | $39.9B | 12.5x | +11.7% | -0.4% | Hold | -4.4% |
DEL DELL Dell Technologies Inc. | $72.3B | 21.7x | +4.6% | 5.2% | Buy | -22.1% |
IBM IBM International Business Machines Corporation | $214.8B | 18.4x | +4.9% | 15.6% | Hold | +35.2% |
STX STX Seagate Technology Holdings plc | $168.1B | 52.3x | +13.7% | 21.6% | Buy | -19.1% |
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 $1.1B/year in buybacks (5.1% buyback yield), with a modest 1.78% dividend — combining for 6.9% total shareholder yield.
Dividend SustainableFCF Well Covered
Total Shareholder Yield
6.9%
Dividend + buyback return per year
Buyback Yield
5.1%
Dividend Yield
1.78%
Payout Ratio
35.8%
How NTAP Splits Its Return
Div 1.78%
Buyback 5.1%
Dividend 1.78%Buybacks 5.1%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$2.03
Growth Streak
Consecutive years of dividend increases
2Y
3Y Div CAGR
1.3%
5Y Div CAGR
1.6%
Ex-Dividend Date
—
Payment Cadence
Quarterly
4 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
$1.1B
Estimated Shares Retired
10M
Approx. Share Reduction
4.8%
Shares Outstanding
Current diluted share count from the screening snapshot
209M
At 4.8%/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 | $1.04 | — | — | — |
| 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 70 analysts covering the stock, 26 rate it Buy or Strong Buy, 35 rate it Hold, and 9 rate it Sell or Strong Sell. The consensus 12-month price target is $121, implying +5.6% from the current price of $114. The bear case scenario is $40 and the bull case is $153.
02What is the NTAP stock price target for 2026?
The Wall Street consensus price target for NTAP is $121 based on 70 analyst estimates. The high-end target is $137 (+20.0% from today), and the low-end target is $89 (-22.0%). The base case model target is $145.
03Is NetApp, Inc. (NTAP) stock overvalued in 2026?
NTAP trades at 14.3x times forward earnings. The stock currently trades at a discount to the broader market. Based on current multiples versus the peer group, the relative model signals significantly undervalued. 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) ERP System Implementation — NetApp faces significant risks related to maintaining effective internal financial reporting controls due to the implementation of a new ERP system. (2) External Storage Market Decline — There is a risk of a terminal decline in the external storage market due to increased reliance on public cloud services. (3) Potential Underperformance — Missing the fiscal year 2025 $1 billion Annual Recurring Revenue (ARR) target could lead to underperformance in stock value. 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 $6.9B (+3.0% year-over-year) and EPS of $6.91 (+14.0% year-over-year) for the upcoming fiscal year. The following year, analysts project $7.2B 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 $1.3B in free cash flow over the trailing twelve months — a free cash flow margin of 19.9%. NTAP returns capital to shareholders through dividends (1.8% yield) and share repurchases ($1.1B TTM).