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San Jose, California-based NetApp, Inc. (NTAP) is a global leader in cloud data services and data management, providing innovative solutions that enable businesses to store, manage, and protect their data across on-premises and cloud environments. With a market cap of $25.6 billion, its portfolio includes cloud storage, hybrid cloud, and data protection solutions that help organizations enhance operational efficiency, accelerate digital transformation, and ensure data security. The company is scheduled to release its Q3 earnings report on Thursday, Mar. 6
Ahead of the event, analysts expect NetApp to report a profit of $1.54 per share, down 3.8% from $1.60 in the year-ago quarter. The company has surpassed Wall Street's earnings estimates in three of the last four quarters while missing on another occasion.
For fiscal 2025, analysts expect NetApp to report EPS of $5.89, up 16.4% from $5.06 in fiscal 2024.
NTAP stock has surged 36.2% over the past year, outpacing the broader S&P 500 Index's ($SPX) 22.9% gains and the Technology Select Sector SPDR Fund’s (XLK) 12.8% gain over the same time frame.
NetApp’s strategic focus on AI-optimized tools and cloud-based data management has strategically positioned the company to capitalize on the growing demand for high-capacity storage solutions. The launch of AI-driven products like NetApp AIPod further bolsters its ability to support critical AI initiatives, sharpening its competitive edge and enabling the company to outperform the broader market over the past year.
NetApp released its Q2 fiscal 2025 earnings on Nov. 21, with net revenues of $1.7 billion, a 6% increase year-over-year, and adjusted earnings per share of $1.87, surpassing analysts' expectations of $1.78. This performance was driven by solid growth in all-flash storage and cloud services, including a 43% year-over-year increase in cloud storage. Following the earnings report, NetApp's stock rose more than 2%, reflecting investor confidence. The company also raised its full-year earnings outlook, which further boosted market sentiment.
The consensus opinion on NTAP stock is reasonably bullish, with an overall “Moderate Buy” rating. Of 19 analysts covering the stock, six advise a “Strong Buy” rating, 12 suggest a “Hold,” and one indicates a “Moderate Sell.”
NTAP’s average analyst price target is $140.20, suggesting a potential upside of 16.9% from the current levels.
