Update shared on25 Sep 2025
Fair value Increased 1.21%Analysts have raised NetApp’s price target modestly to $119.71, citing resilience in cloud software and enterprise hardware spending offsetting margin weakness and regional softness, while viewing the recent share selloff as overdone.
Analyst Commentary
- Quarterly results were in line with internal expectations, but not as strong as key peers, especially Pure Storage, which is outperforming NetApp.
- Bullish analysts note that the selloff in shares after earnings was an overreaction, as underlying performance did not warrant the negative aftermarket movement.
- Product gross margins missed estimates and there is ongoing weakness in both European and U.S. federal segments; however, product margins are expected to recover.
- Cloud software business remains a strength and should deliver continued positive performance.
- Bullish analysts observe that enterprise hardware spending trends outside of certain weak categories are tracking modestly ahead of prior expectations, lending some support to the outlook.
What's in the News
- NetApp launched StorageGRID 12.0, introducing major enhancements for AI and HPC workloads, including advanced caching, versioning of AI datasets, and simplified management features like automated firmware upgrades.
- StorageGRID 12.0 offers new security capabilities with improved encryption, integrity checking, default SSH port blocking, and expanded object lock support for immutable datasets.
- The company provided guidance for Q2 and FY26, forecasting quarterly revenue of $1.615–$1.765 billion and GAAP EPS of $1.35–$1.45; FY26 revenue is expected at $6.625–$6.875 billion with GAAP EPS of $5.72–$6.02.
- NetApp repurchased 385,843 shares for $38.49 million, nearly completing its long-standing buyback program, with 98.83% of authorized shares repurchased to date.
- Amazon FSx for NetApp ONTAP is now supported as external storage for Amazon EVS, supporting VMware migrations to AWS, advanced data protection, disaster recovery, and enhanced ransomware defense features.
Valuation Changes
Summary of Valuation Changes for NetApp
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $118.29 to $119.71.
- The Future P/E for NetApp has risen slightly from 19.46x to 20.13x.
- The Consensus Revenue Growth forecasts for NetApp remained effectively unchanged, moving only marginally from 4.3% per annum to 4.4% per annum.
Disclaimer
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