NASDAQInformation TechnologyComputer HardwareSnapshot 2026-08-31
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Create your account →Warn: Primary pillar under pressure — Deliver EPS near $6.66 in FY27: FY27 EPS guidance mid $6.66 vs target ~$6.66.
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 AI and cloud expansion. The current thesis is intact, supported by strong recent financial performance and consistent management priorities.
The market appears to have priced in a neutral valuation compared to peers, with expectations that are currently justified. There is a low expectations gap, indicating that the stock's current valuation reflects its recent performance without excessive optimism.
Fundamentals are likely to remain stable, driven by management's focus on revenue growth and maintaining strong margins. However, there is a moderate risk associated with potential earnings misses, as recent earnings surprises have been trending down.
The long-term thesis hinges on the performance of sector bellwethers like DELL, ANET, and SNDK. If these companies continue to perform well, it could positively impact NTAP. Conversely, any negative guidance from these peers could pose risks to NTAP's momentum.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports the thesis. Gartner recognition enhances credibility for AI and cloud products, which is a positive development. There are no new threats impacting the outlook.
as of 2026-08-31
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
In the next 1 to 3 years, NTAP's performance will depend on its ability to navigate sector challenges while executing its growth strategies. Not investment advice.
