| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 31 | 28.0x | 17.8x | Bottom tier | |
Growth | 67 | 10.9% | 7.1% | Top tier | |
Quality | 95 | 36.2% | 4.5% | Top tier | |
Safety | 71 | — | 2.6x | Top tier | |
Capital Return | 36 | 1.04% | 2.12% | Bottom tier | |
Momentum | 95 | 64.0% | 2.9% | Top tier | |
Sentiment | 64 | 13 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
NetApp provides a unified data infrastructure platform that combines on-premises storage and cloud services across hybrid and multicloud environments. The company generates revenue from selling storage systems, particularly all-flash and hybrid-flash arrays, support contracts and professional services, the Keystone storage-as-a-service offering, and services such as Amazon FSx for NetApp ONTAP and Azure NetApp Files. Its customer value proposition centers on processing data where it resides for artificial intelligence and analytics workloads, reducing data movement, and providing performance, cyber resilience, and unified management.
NetApp reported revenue of $2.03 billion in the first quarter of fiscal year 2027, up 30% year over year and 4% sequentially, or 26% year over year excluding the approximately $65 million impact of the extra week. Non-GAAP gross profit reached a record $1.43 billion, up 29%, and operating margin reached 31.9%, while non-GAAP earnings per share rose 66% to $2.58. Gross margin was 70.6%, down 50 basis points year over year due to the higher share of products in revenue, while EDGAR data for the latest reported quarterly period showed net income of $375 million and earnings per share of $1.88.
The Hybrid Cloud segment accounted for the largest share of the mix, with revenue of $1.82 billion and year-over-year growth of 30%. Product revenue was $987 million, support revenue was $720 million, professional services revenue was $112 million, and Public Cloud revenue was $206 million. Products represented 49% of total revenue versus 42% a year earlier. Support recorded a gross margin of 93.2% and Public Cloud 86.4%, while product margin was 54.6% under pressure from higher component costs. On a trailing-twelve-month basis, EDGAR data showed revenue of $6.5 billion, gross profit of $4.5 billion, net income of $1.4 billion, and earnings per share of $7.09.
The average analyst price target is $194.22, within a wide range of $170 to $219. The average is below the 52-week range high of $209.06, while the highest target exceeds that peak. The Neutral consensus rating balances the raised fiscal year 2027 outlook and accelerating all-flash and artificial intelligence demand against the expected decline in second-quarter gross margin to 67%–68% and the possibility of slowing growth.
Figures in the text are as of 2026-09-04; the live price is shown at the top of the page.
Revenue rose 30% year over year to $2.03 billion, or 26% after excluding the impact of an extra week that added approximately $65 million. Products led performance with revenue of $987 million and growth of 51%, while all-flash revenue reached $1.31 billion, up 47%. Public Cloud also grew 28% to $206 million, and the company benefited from demand for artificial intelligence infrastructure modernization, cloud, and Keystone.
The NetApp platform enables customers to prepare data for artificial intelligence where it resides, with unified storage, security, and management across hybrid and multicloud environments. The company won approximately 350 specialized artificial intelligence and data lake modernization deals in the first quarter of fiscal year 2027, with deal sizes increasing as deployments move into production. Examples included the Samsung Electronics agreement to support its EDA environment and artificial intelligence center of excellence, a NetApp AFX deal integrated with NVIDIA SuperPOD, and a project with an Asian neo-cloud provider for inference workloads.
The company raised its revenue range to $7.975–$8.225 billion, and the midpoint of $8.1 billion implies year-over-year growth of 17%. It also raised its non-GAAP operating-margin range to 30.3%–31.3% and its earnings-per-share range to $9.73–$10.03, with a midpoint of $9.88 and expected growth of 22%. For the second quarter of fiscal year 2027, the company expects revenue of $2.1 billion with a range of plus or minus $75 million and gross margin between 67% and 68%.
Automated analysis for informational purposes only — not investment advice.
NetApp acquired DataPelago in the first quarter of fiscal year 2027 to add the Nucleus engine, which performs high-performance in-place data processing and reduces the need to move data before using it in artificial intelligence. At the beginning of the second quarter of fiscal year 2027, it acquired JetStream, which specializes in continuous protection and cloud recovery for VMware workloads. JetStream aims to connect VMware environments, including those using competitors' on-premises infrastructure, with NetApp cloud services such as Azure NetApp Files.
The first risk is pressure from mix and costs, as NetApp expects gross margin to decline to 67%–68% in the second quarter of fiscal year 2027 from 70.6% in the first quarter. Product margin declined to 54.6% because of higher component costs, although improved pricing offset part of the impact. Expected growth also slows from 26% in the first quarter after adjusting for the extra week to 23% at the midpoint of the second-quarter outlook, while inventory increased and inventory turnover declined to 6.
NetApp ended the first quarter of fiscal year 2027 with $3.6 billion in cash and short-term investments and total debt of $2.5 billion, equivalent to net cash of $1.1 billion. Cash flow from operations was $503 million, while free cash flow reached $401 million. The company returned $302 million to shareholders, including $200 million in share repurchases and $102 million in dividends of $0.52 per share.
