Wedbush's Outlook on NetApp Ahead of Earnings
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 25 2026
0mins
Should l Buy NTAP?
Source: seekingalpha
- Market Sentiment Analysis: Wedbush noted that sentiment towards NetApp (NTAP) is largely pessimistic ahead of its fiscal Q3 2026 earnings report, primarily due to concerns over rising memory prices, although analysts believe these concerns may be overstated.
- Pricing Strategy Adjustment: Analysts highlighted that NetApp raised its pricing at the end of FQ3 2026, a strategy expected to offset some margin pressure from increased component costs while providing a near-term sales boost.
- Supply Chain Management Advantage: Wedbush analysts believe NetApp is ahead of peers in NAND sourcing and has pulled forward SSD/NAND purchases in the second quarter of calendar year 2025, indicating strong preparedness to navigate supply chain challenges.
- Long-Term Growth Challenges: While NetApp may outperform peers in the short term, analysts pointed out that slow growth in enterprise storage spending and a lack of significant AI deals could hinder the company's long-term growth potential.
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Analyst Views on NTAP
Wall Street analysts forecast NTAP stock price to rise
19 Analyst Rating
6 Buy
13 Hold
0 Sell
Moderate Buy
Current: 98.790
Low
110.00
Averages
124.21
High
137.00
Current: 98.790
Low
110.00
Averages
124.21
High
137.00
About NTAP
NetApp, Inc. is an intelligent data infrastructure company combining unified data storage, integrated data, operational and workload services. It creates silo-free infrastructure, harnessing observability and AI to enable data management. Its operational and workload services provide continuous optimization of performance and efficiency for infrastructure and workloads through observability and AI. Its Hybrid Cloud segment provides a unified data storage portfolio of storage management and infrastructure solutions that helps customers modernize their data centers. Hybrid Cloud includes software, hardware, and related support, along with professional and other services. Its Public Cloud segment offers a portfolio of products delivered primarily as-a-service, including related support. This portfolio includes cloud storage, data services and operational services. These solutions and services are available in the public clouds, including Amazon AWS, Microsoft Azure, and Google Cloud.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Revenue Growth Target: The company aims for an 8% revenue growth in Q4 2026, driven by strong momentum in AI and cloud services, highlighting its competitive position in a rapidly evolving market.
- Financial Performance: NetApp reported a non-GAAP EPS of $2.12, beating estimates by $0.06, with revenue of $1.71 billion exceeding expectations by $10 million, reflecting improved operational efficiency.
- Shareholder Returns: The dividend will be payable on April 22, with a record date of April 3 and an ex-dividend date also on April 3, ensuring timely returns for shareholders and bolstering investor confidence.
See More
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- Surge in AI Customers: Approximately 300 customers have chosen NetApp as their AI data storage foundation, indicating the company's appeal in the AI market, particularly with the strong early momentum of its new AFX and AI Data Engine (AIDE).
- Record All-Flash Array Revenue: All-flash array revenue reached $1 billion, growing 11% year-over-year, while Keystone's storage-as-a-service revenue saw a remarkable 65% increase, further solidifying NetApp's leadership in the storage market.
- Optimistic Outlook: The CFO projected total revenue for fiscal year 2026 to be between $6.772 billion and $6.922 billion, reflecting an 8% year-over-year growth, showcasing the company's confidence in future growth, especially with ongoing investments in AI and cloud services.
See More
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- Profitability Improvement: The company reported GAAP earnings per share of $1.67 and record non-GAAP earnings per share of $2.12, showcasing successful cost control and operational efficiency, which may attract more institutional investors.
- Strong Cloud Performance: Public Cloud revenue stood at $174 million, driven by a 27% year-over-year growth, highlighting NetApp's increasing competitiveness in the cloud storage market and aiding its expansion in the rapidly growing cloud computing sector.
- Shareholder Returns: In Q3, the company returned $303 million to shareholders through share repurchases and cash dividends, demonstrating strong cash flow and commitment to shareholders, which could enhance market expectations for its long-term value.
See More
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- Live Webcast Access: Investors can access the live webcast of the earnings call by logging onto NetApp's investor relations website, ensuring broad participation and transparency, thereby enhancing communication with shareholders.
- Market Reaction Anticipation: This earnings call is poised to deliver critical financial data and management insights, which could influence NetApp's stock price movement, especially given the market's high expectations for its performance.
- Strategic Communication: Through this call, NetApp will have the opportunity to articulate its future strategic direction and market positioning, further bolstering investor confidence in its long-term growth potential.
See More
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