NetApp Q1 Outlook Falls Short, Analyst Lowers Price Forecast

NetApp, Inc. (NASDAQ:NTAP) reported fiscal fourth-quarter results on Thursday. The company reported quarterly sales of $1.73 billion (+4% year over year), beating the Street view of $1.72 billion.

The company reported adjusted earnings per share of $1.93, beating the analyst consensus estimate of $1.90.

Following the results, Wells Fargo analyst Aaron Rakers maintains NetApp with an Equal Weight rating, lowering the price forecast from $115 to $100.

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UBS analyst David Vogt reiterated the Neutral rating on the stock, decreasing the price forecast from $115 to $108.

In the fourth quarter, Hybrid Cloud segment revenue rose to $1.57 billion, up from $1.52 billion in the fourth quarter of fiscal 2024. Public Cloud segment revenue reached $164 million, compared to $152 million in the prior-year quarter.

Quarterly billings reached $2.03 billion, up from $1.81 billion in the fourth quarter of fiscal 2024, marking a 12% year-over-year increase.

The company reported operating cash flow of $675 million, compared to $613 million in the fourth quarter of fiscal year 2024.

The company reported cash and equivalents of $3.85 billion at the end of the fourth quarter of fiscal year 2025.

In the fourth quarter, NetApp returned $355 million to its stockholders through a combination of share repurchases and cash dividends, it said in a press release.

According to George Kurian, CFO of NetApp, fiscal year 2025 saw numerous revenue and profitability records for NetApp. This success was attributed to significant market share gains in all-flash storage and the accelerating growth of their first-party and marketplace storage services.

Kurian also noted the company’s strategic moves during the year, including a refresh of their entire systems portfolio, a sharper focus on cloud services, and positioning to lead in the enterprise AI market.

Looking ahead to fiscal year 2026, he expressed confidence in continued long-term growth, citing the company’s strongest portfolio to date, a differentiated value proposition, and ongoing innovation and market expansion following a year of market share gains.

NetApp expects first-quarter adjusted EPS to range between $1.48 and $1.58, below the $1.65 estimate. The company forecasts first-quarter revenue between $1.455 billion and $1.605 billion, compared to the $1.61 billion consensus.

NetApp projects FY2026 adjusted EPS between $7.60 and $7.90, compared to the $7.72 estimate. The company expects revenue between $6.625 billion and $6.875 billion, versus the $6.86 billion consensus.

Price Action: NTAP shares are trading lower by 0.51% to $98.71 at last check Friday.

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