One-glance verdict
Within fair range
$144.94 our estimate vs market $185.59
Wall Street consensus: $194.19 (34.0% higher than our fair-value estimate)
28% above our estimate
Fundamentals snapshot
NetApp, Inc.
NTAP · NMS · Technology · Software - Infrastructure
Current price
$185.59
52-week range
$93.69 - $209.06
Market cap
$36.45B
Balance sheet
Healthy
15.55x Strong cushion
Net cash $1.04B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 15.2% last year.
- Reward Returns 114.8% on equity, ahead of 50% of its peers.
- Risk Stock trades 58.6% above its 5-year average P/E.
- Risk Insider ownership is only 0.4% (peer median: 1.5%).
What this company does
NetApp, Inc.
NetApp sells data storage solutions to large businesses, acting like a high-tech digital filing cabinet for their most important information. The company makes money by selling both physical storage hardware and cloud-based software, as well as charging for ongoing support and services. As companies create more data than ever, NetApp's role in helping them safely store, manage, and access it, whether on their own servers or in the cloud, becomes increasingly critical.
How the company got here
NetApp was founded in 1992 by David Hitz, James Lau, and Michael Malcolm, originally named Network Appliance, Inc. They introduced their first network storage device, often called the "toaster," which simplified data storage for businesses. The company grew quickly during the dot-com boom of the late 1990s and went public in 1995. Over the years, NetApp shifted its focus from just hardware to providing sophisticated software and services that help companies manage their data across their own data centers and the public cloud.
What it actually does
NetApp provides the gear and software that companies use to store, manage, and protect their massive amounts of digital information. Think of it as a highly advanced and secure filing cabinet for a company's most critical data, whether that data lives in their own building or with a cloud provider like Amazon Web Services or Microsoft Azure. Their systems are designed to make sure data is safe, accessible quickly, and can be moved easily between different computing environments. This is crucial for everything from running large company databases to developing artificial intelligence (AI) applications.
Hybrid Cloud
This is NetApp's largest business area, making up the vast majority of its revenue. It provides businesses with the physical storage hardware and related software to run in their own data centers (a private space for a company's computers and data). This segment is called "Hybrid" because the software is designed to work seamlessly with public cloud services, allowing customers to create a hybrid cloud (a mix of their own computers and public cloud services). Companies pay for the powerful storage systems, often filled with high-speed flash memory, and the software that manages and protects all that data.
Public Cloud
This is a smaller but fast-growing part of NetApp's business. Instead of selling hardware, this segment offers software and services that run directly within the major public cloud providers like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud. Customers pay for these services to manage their data that is already in the cloud, using NetApp's expertise to organize, protect, and optimize it. This allows businesses to use the same familiar NetApp tools whether their data is in their own office or in a giant cloud data center.
What management is betting on now
NetApp's leadership is heavily focused on artificial intelligence (AI), believing that their ability to manage and move large amounts of data is critical for companies developing AI applications. They are also pushing their advanced all-flash storage systems, which provide the high speed needed for modern business applications and AI. Another key priority is deepening their partnerships with major cloud providers to make it even easier for customers to manage data across hybrid environments. The overall strategy is to be the go-to company for managing data, no matter where a customer chooses to store it.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q2
$60.00M
FY2025 Q3
$338.00M
FY2025 Q4
$640.00M
FY2026 Q1
$620.00M
FY2026 Q2
$78.00M
FY2026 Q3
$271.00M
FY2026 Q4
$900.00M
FY2027 Q1
$401.00M
Revenue
$1.82B
Net income
$375.00M
Diluted EPS
1.88
Operating cash flow
$503.00M
Free cash flow
$401.00M
Fetching…
Sources
Revenue
$1.95B
Net income
$404.00M
Diluted EPS
2.02
Operating cash flow
$950.00M
Free cash flow
$900.00M
Fetching…
Sources
Revenue
$1.71B
Net income
$334.00M
Diluted EPS
1.67
Operating cash flow
$317.00M
Free cash flow
$271.00M
Fetching…
Sources
Revenue
$1.71B
Net income
$305.00M
Diluted EPS
1.51
Operating cash flow
$127.00M
Free cash flow
$78.00M
Fetching…
Sources
Revenue
$1.56B
Net income
$233.00M
Diluted EPS
1.15
Operating cash flow
$673.00M
Free cash flow
$620.00M
Fetching…
Sources
Revenue
$1.73B
Net income
$340.00M
Diluted EPS
1.64
Operating cash flow
$675.00M
Free cash flow
$640.00M
Fetching…
Sources
Revenue
$1.64B
Net income
$299.00M
Diluted EPS
1.44
Operating cash flow
$385.00M
Free cash flow
$338.00M
Fetching…
Sources
Revenue
$1.66B
Net income
$299.00M
Diluted EPS
1.42
Operating cash flow
$105.00M
Free cash flow
$60.00M
Fetching…
Sources
Is it cheap or expensive?
Fair value $144.94 vs current price $185.59
Wall Street consensus is the average analyst price target: $194.19 (34.0% higher than our fair-value estimate).
Our most-likely fair value is $144.94 a share — about 21.9% away from today's price of $185.59, so the stock currently looks fairly priced.
Is it drowning in debt?
Healthy
Net cash $1.0B - more cash than debt. Interest coverage 15.6x.
Net debt
$-1.04B
Interest coverage
15.55x
NetApp, Inc.'s profit covers its interest bill about 15.6 times over. which is stronger than most peers shown here.
Healthy
Worse cushion
Baseline
Better cushion
NTAP
BASELINE
NetApp, Inc.
Total debt $2.53B Interest coverage 15.55x This is the baseline the peer rows are being compared against.
Total debt $34.47B Interest coverage 5.41x -65% vs NTAP Carries about 2.9x less debt cushion than NTAP.
Total debt $20.32B Interest coverage 14.05x -10% vs NTAP Has roughly the same debt cushion as NTAP.
Total debt $1.52B Interest coverage 20.59x +32% vs NTAP Carries about 1.3x more debt cushion than NTAP.
Total debt $917.65M Interest coverage 27.83x +79% vs NTAP Carries about 1.8x more debt cushion than NTAP.
What you should know
The case for and against NTAP
3 Rewards
2 Risks
Rewards
-
Revenue grew 15.2% last year.
-
Returns 114.8% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Stock trades 58.6% above its 5-year average P/E.
-
Insider ownership is only 0.4% (peer median: 1.5%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
26.25x
Forward P/E
17.02x
P/B
24.33x
P/S
4.93x
EV/EBITDA
16.90x
PEG ratio
2.06x
Profitability
How much profit each dollar creates
Gross margin
70.6%
Operating margin
26.7%
Net margin
19.2%
ROE
114.8%
ROA
11.7%
Health
Liquidity and balance-sheet strength
Debt / equity
1.69x
Current ratio
1.24x
Quick ratio
0.99x
Total debt
$2.53B
Total cash
$3.58B
Growth
How the business has been compounding
Revenue TTM
$7.18B
Revenue 5Y CAGR
-0.3%
EPS TTM
7.07
EPS 5Y CAGR
3.1%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.90B
Free CF TTM
$1.87B
FCF margin
26.0%
Dividend
Shareholder payout
Yield
1.1%
Payout ratio
29.4%
Last ex-div date
2026-10-09