- NetApp has updated its forecast for fiscal year adjusted earnings per share (EPS) to a range of $7.75 to $8.05, previously predicted at $7.60 to $7.90. The market estimate was $7.75.
- The company expects its adjusted gross margin to be between 71.7% and 72.7%, up from the previous estimation of 71% to 72%.
- NetApp projects an adjusted operating margin of 29.5% to 30.5%, revised upwards from the prior range of 28.8% to 29.8%.
- The forecast for net revenue remains unchanged at a range of $6.63 billion to $6.88 billion.
- For the second quarter, NetApp’s net revenue stood at $1.71 billion, marking a 2.8% year-over-year increase, marginally beating the estimate of $1.69 billion.
- Hybrid cloud net revenue was $1.53 billion, up 3% compared to the previous year, slightly above the estimated $1.52 billion.
- Product revenue reached $788 million, a 2.6% increase from the prior year, surpassing the estimated $771 million.
- Support revenue came in at $647 million, showing a 1.9% rise year-over-year, very close to the $646.9 million estimate.
- Public cloud net revenue was $171 million, increasing by 1.8% year-over-year, in line with the estimation of $171.5 million.
- The adjusted gross margin for the quarter was recorded at 72.6%, higher than both the previous year’s 72% and the estimated 70.9%.
- Earnings per share (EPS) for the quarter were $1.51, up from $1.42 year-over-year.
- Following these results, NetApp shares rose by 2.3% in post-market trading, reaching $113.99 with a volume of 5,262 shares traded.
- Market analysts have recorded 7 buy ratings, 13 hold ratings, and no sell ratings for NetApp shares.
Netapp Inc on Smartkarma
Analysts at Baptista Research on Smartkarma have been closely monitoring NetApp Inc, providing valuable insights into the company’s performance and potential growth. In a recent report titled “NetApp: Can Its Cloud Margins Really Climb to 85% & Beyond?“, the analysts highlighted NetApp’s stability and challenges in the first quarter of fiscal year 2026. Despite some headwinds, NetApp exceeded revenue expectations of $1.56 billion, driven by strong performance in the Americas, offsetting declines in other regions.
In another report by Baptista Research titled “NetApp Inc.: 6 Critical Factors That Will Define Its Success in 2025 & Beyond!“, a bullish sentiment was expressed regarding NetApp’s future outlook. The company reported record revenue in the fourth quarter of fiscal year 2025, indicating strong growth in the all-flash storage market and other services. With a focus on AI-powered infrastructure and key revenue contributors like all-flash systems and public cloud services, NetApp seems poised for success in the evolving enterprise AI market.
A look at Netapp Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 5 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
NetApp Inc. shows a promising long-term outlook based on the Smartkarma Smart Scores. The company scores well in several key factors. With a strong Resilience score of 5, NetApp Inc. demonstrates a robust ability to weather market fluctuations and challenges. Additionally, the company scores high in Growth and Momentum, indicating positive momentum and potential for expansion. These factors suggest a solid foundation for future growth and performance.
Moreover, NetApp Inc. stands out with a respectable Dividend score of 3, providing potential returns to investors. While the Value score is at a moderate level, the overall combination of scores points towards a company with strong growth prospects and stability in the long run. NetApp Inc. plays a significant role in providing storage and data management solutions globally, catering to a diverse clientele including enterprises, government agencies, and universities.
Disclaimer: This article by Smartkarma is general in nature and 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. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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