San Jose, California-based NetApp, Inc. (NTAP) provides a range of enterprise software, systems, and services that customers use to transform their data infrastructures. Valued at $23.2 billion by market cap, the company's storage solutions include specialized hardware, software, and services that provide storage management for open network environments.
Shares of this pure-play data storage company have underperformed the broader market over the past year. NTAP has gained 18.1% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 26.6%. However, in 2026, NTAP stock is up 8.5%, surpassing the SPX’s 8.1% rise on a YTD basis.
Narrowing the focus, NTAP’s underperformance is also apparent compared to the State Street Technology Select Sector SPDR ETF (XLK). The exchange-traded fund has gained about 53.9% over the past year. Moreover, the ETF’s 21.7% returns on a YTD basis outshine the stock’s single-digit gains over the same time frame.
On Feb. 26, NTAP shares closed down more than 2% after reporting its Q3 results. Its adjusted EPS of $2.12 topped Wall Street expectations of $2.07. The company’s revenue was $1.71 billion, beating Wall Street forecasts of $1.69 billion. NetApp expects full-year adjusted EPS in the range of $7.92 to $8.02, and revenue ranging from $6.8 billion to $6.9 billion.
For the current fiscal year, ended in April, analysts expect NTAP’s EPS to grow 11.9% to $6.48 on a diluted basis. The company’s earnings surprise history is impressive. It beat or matched the consensus estimate in each of the last four quarters.
Among the 21 analysts covering NTAP stock, the consensus is a “Moderate Buy.” That’s based on seven “Strong Buy” ratings, 13 “Holds,” and one “Strong Sell.”
This configuration is less bullish than a month ago, with eight analysts suggesting a “Strong Buy.”
On Apr. 16, JPMorgan Chase & Co. (JPM) downgraded NTAP to a “Neutral” rating with a price target of $110.
The mean price target of $118.06 represents a 1.6% premium to NTAP’s current price levels. The Street-high price target of $137 suggests an upside potential of 17.9%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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