Update shared on27 Aug 2025
Fair value Increased 2.48%NetApp’s consensus price target was modestly raised to $117.07 as analysts cited better-than-expected enterprise hardware spending, strong Q4 results, improved operating leverage, and AI market positioning, supporting a cautiously positive outlook.
Analyst Commentary
- Supply chain updates indicate enterprise hardware spending is tracking modestly better than expected, excluding print and consumer computer categories.
- Recent fiscal Q4 sales showed continued traction from NetApp’s refreshed systems portfolio.
- Earnings outperformed expectations due to improved operating leverage.
- NetApp is considered to have a favorable position within the enterprise artificial intelligence market.
- Upward price target adjustments reflect a cautiously positive outlook despite neutral ratings ahead of the upcoming earnings report.
What's in the News
- NetApp announced that Amazon FSx for NetApp ONTAP is now a supported external storage option for Amazon Elastic VMware Service (EVS) on AWS, enabling seamless VMware workload migration to the cloud with advanced data management, cost reduction, enhanced disaster recovery, and improved ransomware protection.
- The company repurchased 1,140,574 shares for $116.61 million, completing 98.64% of its buyback program, totaling 273,844,966 shares for $13.6 billion.
- NetApp provided fiscal 2026 guidance, expecting first-quarter revenue of $1.455–$1.605 billion and EPS of $1.06–$1.16, with full-year revenue forecasted at $6.625–$6.875 billion and EPS at $5.80–$6.10.
Valuation Changes
Summary of Valuation Changes for NetApp
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $115.43 to $117.07.
- The Future P/E for NetApp remained effectively unchanged, moving only marginally from 19.60x to 19.88x.
- The Discount Rate for NetApp remained effectively unchanged, moving only marginally from 8.60% to 8.59%.
Disclaimer
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