NASDAQ:NTAP

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NetApp Shares Rise 3% After Record Quarter Beats Guidance Across the Board

NetApp (NASDAQ: NTAP) shares climbed 3% Wednesday after the storage and data infrastructure company reported record first-quarter fiscal 2027 results that exceeded guidance on every metric, alongside a significant upward revision to its full-year outlook.

Record Revenue and Sharp Profit Growth

NetApp posted net revenues of $2.03 billion for the quarter ended July 31, up 30% year-over-year. The growth was broad-based: Hybrid Cloud segment revenue rose 30% to $1.82 billion, while Public Cloud segment revenue grew 28% to a record $206 million. Billings came in at $2.06 billion, up 36% year-over-year.

Profitability expanded even faster than revenue. GAAP net income jumped 61% to $375 million, translating to GAAP earnings per share of $1.88. On a non-GAAP basis, EPS reached $2.58, up 66% from the prior year. GAAP operating margin came in at 23.9%, with non-GAAP operating margin at 31.9%.

The standout performer was NetApp's all-flash array business, which posted record net revenue of $1.3 billion, up 47% year-over-year — a sign of continued enterprise migration toward flash storage, likely aided by AI workload demands.

AI Push Continues with DataPelago Acquisition

CEO George Kurian pointed to customer wins and demand for the NetApp Platform to support AI and hybrid multi-cloud initiatives as a key driver of the quarter's strength. During the quarter, the company acquired DataPelago, an AI data infrastructure company, aimed at helping customers accelerate AI deployment and improve compute efficiency where data is created and stored.

NetApp also expanded its product lineup with releases including StorageGRID 12.1 for AI data pipelines, new Kubernetes capabilities in Trident software, and an MCP Gateway service connecting its Instaclustr managed infrastructure to AI applications and agents. On the partnership front, the company deepened ties with Cisco, CGI, SK Telecom, and Tata Consultancy Services.

Guidance Raised Significantly

For the second quarter of fiscal 2027, NetApp guided for net revenues between $2.025 billion and $2.175 billion, with non-GAAP EPS in a range of $2.54 to $2.64.

For the full fiscal year, the company raised its outlook to net revenues of $7.975 billion to $8.225 billion and non-GAAP EPS of $9.73 to $10.03 — guidance that reflects confidence in sustained demand across both its core storage business and its cloud and AI-adjacent offerings.

Why the Stock Moved

Today's 3% gain is a comparatively modest reaction given a quarter that beat guidance across every reported metric, which may reflect that strong results were already partly anticipated given the company's recent innovation cadence and AI-related partnership announcements. Still, the raised full-year guidance and record performance in the all-flash array business appear to have been well-received, even if the market's response was measured relative to the scale of the earnings beat.
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Author
European Investor 09-03-26
NetApp Stock Jumps 6.3% After Morgan Stanley Upgrades NTAP to Equal Weight

NetApp (NASDAQ: NTAP) shares rose about 6.3% Monday after Morgan Stanley upgraded the data storage and cloud infrastructure company, providing a positive catalyst for the stock.

Morgan Stanley analyst Erik Woodring upgraded NetApp to Equal Weight from Underweight and raised the firm's price target substantially to $173 from $137.

The rating change represents a meaningful improvement in Morgan Stanley's outlook, although the new $173 target remains below NetApp's recent share price of approximately $199.47.

Morgan Stanley Takes a More Constructive View

The upgrade removes Morgan Stanley's previous bearish Underweight stance on NetApp, while the $36 increase in the price target represents a roughly 26% upward revision to the firm's valuation.

NetApp has increasingly attracted attention for its exposure to enterprise data infrastructure, cloud storage and AI-related workloads. Growing AI adoption is increasing the amount of enterprise data that needs to be stored, managed and accessed efficiently, potentially creating additional demand for storage infrastructure.

However, Morgan Stanley's Equal Weight rating suggests a more balanced rather than outright bullish view. At around $199, NTAP is still trading approximately 15% above the firm's new $173 target.

The reaction fits with continued investor interest in companies positioned to benefit from AI-driven data-center and enterprise infrastructure spending.

For now, the upgrade has strengthened sentiment toward NTAP, although the stock's price above Morgan Stanley's revised target suggests investors are already pricing in a more optimistic outlook than the firm's new valuation implies.
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Author
European Investor 08-10-26
NetApp Enters Into $1 Billion Credit Agreement

San Jose, California – March 5, 2025 – NetApp, Inc. (NASDAQ: NTAP) announced that it has entered into a Second Amended and Restated Credit Agreement with JPMorgan Chase Bank, N.A., as administrative agent, and a syndicate of lenders. This agreement amends and extends the company’s previous credit facility.

Key Terms of the Credit Agreement
$1 billion revolving unsecured credit facility with a $50 million sublimit for issuing letters of credit.
Maturity Date: March 5, 2030, with an option for two additional one-year extensions, subject to conditions.
Usage: The facility will be used for general corporate purposes and as liquidity support for NetApp’s commercial paper program.
Interest Rates: Based on Moody’s and Standard & Poor’s ratings, with:
Base rate loans carrying a 0% to 0.325% spread.
SOFR rate loans carrying a 0.805% to 1.325% spread.
Currencies: Borrowings can be made in U.S. dollars or other agreed currencies.
Interest Payments:
Quarterly for base rate loans.
End of term for SOFR loans (or every three months for longer periods).
Prepayment: Allowed without penalty.
Financial and Covenant Requirements
NetApp must comply with a maximum leverage ratio, measured quarterly.
Standard restrictions apply on subsidiary debt, liens, asset sales, mergers, and dissolution.
Events of Default: Include payment failures, covenant breaches, cross defaults, bankruptcy events, judgments, ERISA violations, and changes in control.
Expansion and Lender Relationships
NetApp has the option to increase the credit facility by $500 million, raising the total commitment to $1.5 billion.
Some lenders and their affiliates have engaged in investment banking and other transactions with NetApp and may continue to do so.
No Current Borrowings
As of March 5, 2025, NetApp has not drawn any funds or issued any letters of credit under this facility.

This agreement strengthens NetApp’s financial flexibility and liquidity, positioning it for future growth and strategic initiatives.
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M
ME NEWS 03-06-25
NetApp, Inc. announced the appointment of Wissam Jabre as Executive Vice President and Chief Financial Officer, effective March 10, 2025. Jabre, who previously served as CFO at Western Digital Corporation and Dialog Semiconductor Plc, will replace Michael J. Berry, who is retiring but will remain as a senior advisor during the transition. Jabre holds an engineering degree from the American University of Beirut and an MBA in finance from Columbia University. His compensation package includes a $750,000 base salary, a 130% target incentive bonus, $7.5 million in service-vested restricted stock units, and $7.5 million in performance-based restricted stock units vesting through fiscal years 2026 and 2027. Additionally, he will receive a $6.57 million signing bonus, contingent on remaining with NetApp for at least 24 months.

The company also approved a Change of Control Severance Agreement and an Indemnification Agreement for Jabre, effective upon his start date. If terminated without cause, he will retain stock grants scheduled to vest within a year, and in case of death or disability, his restricted stock units will vest immediately. A press release announcing Jabre’s appointment was attached as an exhibit to the SEC filing.
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Author
The Investor 01-29-25
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