NetApp (NTAP) Stock Soars 33% on AI-Fueled Revenue Surge and Strong Guidance

Key Highlights

• NetApp shares skyrocketed approximately 33% on Friday, reaching around $189 and surpassing its October 2000 all-time high of $148.63
• Fourth-quarter revenue reached $1.95B, exceeding analyst expectations of $1.87B; earnings per share of $2.03 fell short of the $2.27 consensus
• Fiscal year 2027 revenue projection of $7.33B–$7.58B exceeded Wall Street’s $7.20B forecast
• The company unveiled a $1 billion stock buyback initiative and maintained its quarterly dividend payment
• Northland Securities boosted its price target to $171 with an outperform rating; the consensus analyst target stands at $127.18

NetApp (NTAP) is poised to achieve a milestone it last reached during the height of the dot-com era — surpassing its bubble-era peak from over two decades ago.

NetApp, Inc., NTAP

Shares rocketed approximately 33% on Friday, climbing to roughly $189 following the company’s impressive fiscal fourth-quarter earnings release on Thursday evening. This surge propels the stock beyond the $148.63 all-time high established on October 20, 2000, a threshold untouched since the internet boom era.

The rally would also represent NTAP’s strongest single-session performance since December 5, 2000, when shares vaulted 41%.

NetApp now stands alongside Intel, Cisco, and Corning as technology stalwarts from the dot-com era that have successfully recaptured — or are approaching — their millennium-era valuations.

Strong Revenue Performance, Earnings Mixed

Fourth-quarter revenue totaled $1.95 billion, representing a 12.5% year-over-year increase and surpassing the $1.87B analyst consensus. Earnings per share registered at $2.03, falling short of the $2.27 Wall Street estimate by $0.24.

Various sources report adjusted EPS figures of $2.43, which would represent a $0.16 beat over expectations — this discrepancy likely stems from differences between adjusted and GAAP accounting methods.

Regardless of the EPS interpretation, the revenue performance and forward-looking guidance drove investor enthusiasm.

For fiscal 2027, NetApp projected EPS ranging from $8.70 to $9.00 compared to the $8.53 consensus, alongside revenue guidance of $7.33B–$7.58B versus the $7.20B estimate.

First-quarter 2027 projections similarly exceeded expectations, with anticipated EPS of $2.05–$2.15 against a $1.84 consensus, and revenue forecasts of $1.75B–$1.90B compared to $1.67B.

Chief Executive George Kurian attributed the strong performance to the company’s cloud intelligent data infrastructure platform, which is enabling AI-powered workflows for enterprise clients.

Wall Street Response

Analyst sentiment remains divided. Northland Securities elevated its price target from $137 to $171 while maintaining an outperform rating — though even that upgraded target suggested potential downside from Thursday’s closing price before Friday’s explosive rally.

Barclays reiterated its overweight stance. Bank of America increased its target to $150 but maintained a Hold rating. Morgan Stanley raised its target to $137 while keeping an Underweight recommendation.

Citigroup downgraded NetApp from neutral to mixed on May 14. JPMorgan shifted the stock from overweight to neutral in April and reduced its price target to $110.

The consensus analyst price target of $127.18 sits substantially below Friday’s trading levels. Among 13 tracked analysts, five maintain Buy ratings, seven recommend Hold, and one advises Sell.

NetApp also revealed a fresh $1 billion share repurchase authorization alongside its quarterly dividend distribution — a strategic move demonstrating management’s confidence in the company’s financial position.

Shares opened Friday trading at $183.22. The stock’s 52-week trading range previously spanned $93.69 to $170.97, making Friday’s advance significantly exceed prior projections.

The company reports a return on equity of 118.11% with an 18.07% net margin.

Institutional ownership accounts for 92.17% of outstanding shares. Over the past quarter, company insiders divested 3,275 shares valued at approximately $347,650.

Before Friday’s dramatic surge, the stock had already advanced roughly 43% over the trailing twelve months and 43% during the most recent three-month period.

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