Key Takeaways for NetApp Stock as of September 2026
- Blowout Beat: NetApp’s fiscal Q1 2027 revenue hit $2.03B, up 29.89% YoY and 10.19% above Street’s $1.84B estimate, while adjusted EPS of $2.58 beat estimates by 21.54% and rose 66.45% YoY.
- All-Flash Surge: All-flash array revenue jumped 47% YoY to $1.31B.
- Guidance Raised: Management lifted FY2027 revenue guidance to a $8.1B midpoint (17% YoY growth) and EPS to a $9.88 midpoint (22% YoY growth), both increases from the prior outlook set 90 days ago.
- Pull-Forward Caveat: CEO George Kurian conceded that some large customers moved multi-quarter build-outs into a single quarter, though he called that accelerated-spending cohort “a very small percentage” of NetApp’s customer base.
NetApp beat on revenue and EPS by double digits, yet the stock still fell 10.1%. See what the market didn’t like on TIKR for free →
NetApp Stock Rides an AI Storage Wave, But Some of the Growth Got Pulled Forward
NetApp (NTAP) stock fell about 10.1% after the company reported fiscal first-quarter 2027 earnings on September 2, 2026, even though the results beat Street estimates by a wide margin. Revenue came in at $2.03 billion, up 29.89% year over year and 10.19% ahead of the $1.84 billion consensus, while adjusted earnings per share of $2.58 beat estimates by 21.54% and rose 66.45% from a year ago. The selloff signals that investors weighed less on the headline beat and more on what it would take for that growth pace to hold through the back half of the year.
The number that anchors the thesis is 47%. That’s how fast all-flash array revenue grew year over year, reaching $1.31 billion as customers standardized on NetApp for GPU-intensive AI pipelines that demand low latency and built-in cyber resilience. Public cloud revenue added $206 million, up 28% year over year, while the company closed roughly 350 AI and data lake modernization deals in the quarter, with deal sizes growing as customers move from pilot projects into production. Net income of $515 million and EBIT of $645 million both cleared Street estimates by more than 20%, and operating margin expanded to 31.9%, up 6.1 percentage points from a year earlier.
But an extra week in the reporting period contributed roughly $65 million to revenue, meaning growth was closer to 26% once that timing quirk is stripped out. More importantly, some of the quarter’s strength came from customers compressing purchase timelines. CEO George Kurian addressed that directly on NetApp’s Q1 FY2027 earnings call: “The number of customers and the percentage of our customer base that have the financial flexibility to do accelerated spending is very small… What we saw in the results in Q1 was certain transactions that we expected to be built out over multiple quarters happening within a quarter.” He added that those same customers often deferred other, lower-priority projects to make room for the accelerated ones, which caps how much of the beat is truly incremental demand rather than shifted timing.
Management still raised its full-year outlook meaningfully. FY2027 revenue guidance now sits at a $7.975 billion to $8.225 billion range, up $650 million at the midpoint from the prior forecast, with adjusted EPS guided to a $9.73 to $10.03 range. Wissam Jabre, NetApp’s CFO, flagged that product gross margin actually improved sequentially in the quarter and that the outlook for the rest of the year has firmed slightly versus 90 days ago. NetApp also closed two AI and cloud-focused acquisitions during the period, DataPelago and JetStream, both aimed at deepening its position in AI data readiness and VMware cloud migration.
With guidance raised and all-flash revenue accelerating, see how the number stacks up against NetApp’s TIKR valuation model on TIKR for free →
TIKR Prices NetApp Stock at $222, a 23% Total Return Through 2031
TIKR’s mid-case model values NetApp at $222 by April 2031, implying a 22.9% total return from the current price of $181, or 4.5% annualized over 4.7 years.
That annualized figure lands well below the earnings growth NetApp itself just posted, suggesting the model expects the stock’s current price to already reflect much of the AI-driven strength investors saw in the June quarter. The gap between a 66% EPS growth print and a 4.5% annualized return target is the kind of divergence that shows up when a stock has re-rated ahead of its underlying fundamentals catching all the way up.
That framing lines up with what NetApp described on its call: broad-based demand tied to AI modernization, offset by a slice of purchases pulled forward from future quarters. The model’s modest annualized return accounts for a business executing well today while leaving less room for multiple expansion, since a portion of this quarter’s acceleration reflects timing rather than a permanent step-change in NetApp’s growth rate.
NetApp stock trades near TIKR’s fair value estimate today. Compare the $222 target against your own modelon TIKR for free →
Should You Invest in NetApp, Inc.?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
