NetApp, Inc. (NTAP)
POSITIVEFundamental
72
Price
$186.99
Market Cap
$37.73B
Part 1 · What the company is worth
Overview
NetApp sells data-storage hardware and software that businesses use to store, protect and move the information their applications run on, both inside their own data centers and in the public cloud. It began as a maker of physical storage boxes and now increasingly sells the software layer that lets a company manage the same data seamlessly whether it sits on NetApp hardware on premises or on a cloud provider's infrastructure, positioning itself as a bridge between the two.
How it makes money
Revenue comes from selling storage hardware systems, the software licensed to run and manage them, ongoing maintenance and support contracts, and increasingly subscription fees for cloud-based storage services billed monthly like a utility. Support and subscription revenue carry much higher margins than hardware and recur automatically once a customer is on the platform, so NetApp's profitability depends on growing that recurring base faster than the more competitive, lower-margin hardware business it was built on.
Revenue by segment
On-premises storage systems, related software and support — the core, still-dominant business built around NetApp's traditional hardware.
Storage and data services sold as a subscription and consumed directly inside public cloud platforms like AWS, Azure and Google Cloud; the smaller but faster-growing segment.
Competitive moat
Switching costs · NarrowEnterprise storage systems sit underneath a company's most critical applications, and migrating years of accumulated data and workflows to a different vendor's platform is slow, risky and expensive, which keeps existing customers renewing. But NetApp faces credible alternatives in Dell, Pure Storage and the storage services native to each cloud provider, so the lock-in slows switching more than it prevents it.
What drives demand
Moderately cyclicalDemand follows corporate IT capital spending, which grows with data volumes and cloud migration projects but can be deferred when companies tighten budgets, making hardware orders somewhat cyclical. The growing subscription and support revenue base cushions this cyclicality compared to a pure hardware seller, since existing customers keep paying even when they delay new purchases.
Key risks
- Competition from cloud-native storage and larger rivals — Public cloud providers increasingly sell their own storage services, and larger competitors like Dell can bundle storage with broader infrastructure deals, both of which limit NetApp's pricing power and market-share gains.
- Hardware business decline — The traditional on-premises hardware business, still the majority of revenue, faces structurally slower growth as workloads shift to the cloud, requiring the smaller cloud and software businesses to keep growing quickly to offset it.
- Customer IT budget cyclicality — Storage hardware purchases can be postponed by customers facing tighter budgets or macroeconomic uncertainty, causing order timing to be uneven from quarter to quarter.
- Execution risk in the cloud transition — NetApp's strategy depends on successfully shifting its business mix toward higher-margin subscription and cloud revenue; if that transition is slower than planned, overall growth and margins suffer.
The case for
Buyers argue that NetApp's unified software layer across on-premises and cloud storage gives it a real advantage as customers run hybrid environments, that Public Cloud revenue growing faster than the core business shows the transition is working, and that support-driven recurring revenue provides a stable earnings base.
The case against
Sellers fear that cloud providers' own storage services will keep eroding NetApp's addressable market faster than its cloud subscription business can grow, that the still-dominant hardware segment faces structural decline, and that larger, better-capitalized competitors can outspend NetApp on the next generation of storage technology.
Written by the editors, published on August 18, 2026
Direct competitors
Who this company fights with for the same customers
No editorial profile for this company yet
No competitor list for this company yet.
Balance Sheet & Liquidity
Revenue
$6.92B
Trailing 12 months (through 4/24/2026)
Net Income
$1.28B
Trailing 12 months (through 4/24/2026)
Free Cash Flow
$1.87B
Total Equity
$1.35B
Total Liabilities
$9.39B
Current Ratio
1.44
Interest Coverage
15.36
Debt/EBITDA
1.47
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$157.77
Current Price
$186.99
Margin of Safety
-18.5%
Fair Value Range
$115.26 - $200.28
Estimation Methods
Valuation Metrics
P/E Ratio
29.43
ROE
94.4%
P/B Ratio
27.10
P/FCF
19.59
Gross Margin
70.7%
ROIC
19.7%
Profitability Radar
Value Creation (Economic Moat)
ROIC
19.7%
WACC
12.1%
ROIC − WACC
+7.6 pp
ROIC exceeds the cost of capital — the company is creating value for shareholders.
Fundamental Analysis Criteria
Passed (19)
- EPS shows upward trend
- EPS CAGR 22.93%
- Price CAGR 18.48%
- ROIC 19.7%
- Gross Margin 70.7%
- P/FCF 19.59
- Operating Margin 24.2%
- Positive Free Cash Flow
- CapEx intensity
- Current Ratio
- Interest Coverage
- Debt/EBITDA
- Return on Tangible Assets
- ROE 114.2%
- Earnings Surprise avg 2.8%
- Earnings Quality (OCF/NI) 1.62
- Share Dilution -3.9%
- Net Margin Trend 18.4% vs 18.0%
- Piotroski F-Score 9/9
Failed (8)
- P/B Ratio 27.10
- Debt/Equity ratio
- Low reliance on intangibles
- Price below Graham Number
- DCF valuation (Overvalued)
- Revenue Growth 5Y 3.8%
- Analyst Consensus 46% Buy
- PEG Ratio 2.15
Unavailable (1)
- Dividend Payout NaN%
Piotroski F-Score
Strong financial health
Earnings Quality
High quality: earnings backed by cash
Share Dilution
Buying back shares. Shareholder friendly
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. George Kurian | CEO & Director | 58 |
| Mr. Cesar Cernuda Rego | President | 53 |
| Mr. Wissam G. Jabre C.F.A. | Executive VP & CFO | 54 |
| Ms. Elizabeth M. O'Callahan J.D. | EVP, Chief Administrative Officer & Corporate Secretary | 56 |
| Mr. Syam Nair | Executive VP & Chief Product Officer | 51 |
| Mr. Gus Shahin | Executive Vice President of Business Technology & Operations | - |
| Mr. Daniel De Lorenzo | VP, Controller & Chief Accounting Officer | 42 |
| Ms. Kris Newton | VP of Corporate Communications & Investor Relations | - |
| Ms. Gabrielle Boko | Chief Marketing Officer | - |
| Mr. Octavian Tanase | Senior Vice President of Engineering - Hybrid Cloud Group | - |
Audit Risk
1
Board Risk
2
Compensation Risk
8
Shareholder Rights Risk
3
Part 2 · The price and when to enter
This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Latest News
Recent headlines for NTAP, sourced from Markets Gazette.
- 6/2/2026POSITIVEIf You Invested $1000 In NetApp Stock 10 Years Ago, You Would Have This Much Today
An investment of $1000 in NetApp Inc. (NTAP) stock a decade ago would have yielded a significant return, illustrating the company's long-term growth trajectory. While specific figures are not provided in the title, the implication of a substantial increase suggests strong performance driven by factors such as cloud data services expansion, strategic acquisitions, and consistent revenue growth. Investors who held NTAP through market fluctuations would have benefited from its resilience and innovation in the competitive enterprise storage and data management sector.
- 5/28/2026NEUTRALNetApp Q4 2026 Earnings Call: Complete Transcript
NetApp Inc. held its Q4 2026 earnings call on May 28, 2026. The transcript of this call is now available. While specific financial figures and forward-looking statements are detailed within the transcript, the announcement itself is informational. Investors should review the transcript for insights into the company's performance, strategic initiatives, and future outlook, which may influence trading decisions. The call covers operational performance, market conditions, and management's perspective on the company's trajectory.
- 5/28/2026POSITIVENetApp Likely To Report Higher Q4 Earnings; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call
NetApp, Inc. (NASDAQ: NTAP) is poised to announce its fourth-quarter earnings on May 27th, with analysts forecasting earnings per share of $2.27 on revenue of $1.87 billion. This projection suggests a potential beat against market expectations. The company recently received a Google Cloud award, a significant endorsement that could bolster its cloud services segment. Furthermore, the stock has already seen a positive uptick of 2.7%, indicating favorable market sentiment ahead of the official report. Analyst upgrades, such as Barclays' move to Overweight from Equal-Weight in March 2022, further support a bullish outlook for NTAP investors.
- 4/22/2026POSITIVEWhy Is NetApp (NTAP) Stock Trending Overnight
NetApp Inc. shares saw a modest overnight uptick following the announcement that it has been recognized as Google Cloud's 2026 Partner of the Year for infrastructure modernization. This award underscores the deepening strategic collaboration between NetApp and Google Cloud, particularly in the critical area of cloud storage solutions. The recognition suggests enhanced integration and performance of NetApp's offerings within the Google Cloud ecosystem, potentially driving increased adoption and revenue. Investors may view this as a positive indicator of NetApp's competitive positioning and future growth prospects in the cloud infrastructure market.
- 1/29/2026NEUTRALSuper Bowl LX Runs on Data: How NetApp Helps Power the World’s Biggest Game
The article highlights NetApp's role in providing data infrastructure for major events like the Super Bowl. While showcasing the company's technological capabilities, there's no direct indication of immediate financial impact or a shift in business outlook.
via Markets Gazette