NetApp Set to Report Q4 Earnings with Analysts Optimistic

Based in San Jose, California, NetApp, Inc. (NTAP) is known for its enterprise software, systems, and services that help customers reshape their data infrastructures. With a market capitalization of $17.9 billion, the company specializes in data storage systems, cloud infrastructure solutions, and software for data protection, analytics, and hybrid cloud operations. NTAP will announce its fiscal Q4 earnings for 2025 on Thursday, May 29.

Earnings Expectations and Recent Performance

Ahead of the earnings announcement, analysts forecast that NetApp will report a profit of $1.53 per share, reflecting a 7% increase from $1.43 per share during the same quarter last year. The company has managed to exceed Wall Street’s earnings estimates in two of the last four quarters but fell short in two others. In Q3, NTAP’s adjusted earnings per share (EPS) stood at $1.91, aligning with expectations.

Looking at the fiscal 2025 outlook, analysts anticipate NTAP to report a profit of $5.76 per share, marking a 13.8% rise from $5.06 in fiscal 2024. Projections indicate that the EPS is expected to grow an additional 8.7% year-over-year to $6.26 in fiscal 2026.

Stock Performance and Future Revenue Projections

Over the past year, NTAP has experienced a 13.2% decline, which trails both the S&P 500 Index’s increase of 8.4% and the Technology Select Sector SPDR Fund’s nearly 4.2% rise in the same timeframe.

Following its mixed Q3 earnings report on February 27, NetApp’s shares dropped by 15.6%. Although the adjusted earnings of $1.91 per share showed a 1.5% decline year-over-year, this figure matched consensus estimates. However, revenue fell short of expectations, coming in at $1.6 billion—3% below forecasts. The growth of its hybrid cloud segment did not meet targets and was a contributing factor to this shortfall.

Looking to the future, NetApp projects its fiscal 2025 revenue will range between $6.5 billion and $6.6 billion, with anticipated adjusted EPS falling between $7.17 and $7.27.

Analyst Ratings and Market Sentiment

Analysts on Wall Street express moderate optimism concerning NTAP’s stock, assigning it a “Moderate Buy” rating overall. Of the 19 analysts monitoring the stock, five recommend a “Strong Buy,” while 14 suggest a “Hold” position. The average price target for NTAP stands at $113.13, suggesting a potential upside of 28.6% from current levels.

On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data are intended solely for informational purposes. For more details, please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.