NetApp, Inc. (NASDAQ:NTAP) Just Released Its Yearly Earnings: Here's What Analysts Think

NetApp, Inc. (NASDAQ:NTAP) came out with its yearly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. The result was positive overall - although revenues of US$6.6b were in line with what the analysts predicted, NetApp surprised by delivering a statutory profit of US$5.67 per share, modestly greater than expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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After the latest results, the 18 analysts covering NetApp are now predicting revenues of US$6.78b in 2026. If met, this would reflect an okay 3.1% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 4.2% to US$6.07. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$6.85b and earnings per share (EPS) of US$5.88 in 2026. So the consensus seems to have become somewhat more optimistic on NetApp's earnings potential following these results.

View our latest analysis for NetApp

The consensus price target was unchanged at US$115, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values NetApp at US$135 per share, while the most bearish prices it at US$100.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We can infer from the latest estimates that forecasts expect a continuation of NetApp'shistorical trends, as the 3.1% annualised revenue growth to the end of 2026 is roughly in line with the 3.3% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 5.6% annually. So although NetApp is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards NetApp following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on NetApp. Long-term earnings power is much more important than next year's profits. We have forecasts for NetApp going out to 2028, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.