NetApp Set to Announce Q3 Earnings Amid Positive Market Trends
NetApp, Inc. (NTAP), based in San Jose, California, is a leading player in cloud data services and data management. The company specializes in innovative solutions that help businesses store, manage, and secure their data in both on-premises and cloud settings. With a market cap of $25.6 billion, its offerings include cloud storage, hybrid cloud, and data protection solutions aimed at improving efficiency, accelerating digital transformation, and ensuring data security. NetApp will release its Q3 earnings report on Thursday, March 6.
Analysts Anticipate Slight Earnings Decline
In anticipation of the upcoming report, analysts predict that NetApp will post earnings of $1.54 per share, a decrease of 3.8% compared to $1.60 in the same quarter last year. Over the past four quarters, the company has exceeded analysts’ profit expectations three times, although it did fall short once.
Looking Ahead: Fiscal 2025 Projections
For fiscal 2025, analysts expect NetApp to achieve earnings per share of $5.89, marking a 16.4% increase from $5.06 in fiscal 2024.
NTAP Stock Performance Outshines Market
Over the past year, NTAP stock has increased by 36.2%, significantly exceeding the broader S&P 500 Index’s gain of 22.9% and the Technology Select Sector SPDR Fund’s increase of 12.8% during the same period.
Strategic Positioning in AI and Cloud Services
NetApp’s emphasis on AI-optimized tools and cloud-based data management places it in a strong position to meet the rising demand for high-capacity storage solutions. The introduction of AI-driven products like NetApp AIPod enhances its capacity to support essential AI initiatives, sharpening its competitive edge and contributing to its robust market performance over the last year.
Q2 Earnings Show Strong Market Confidence
On November 21, NetApp reported Q2 fiscal 2025 earnings, showing net revenues of $1.7 billion—a 6% increase year over year. The adjusted earnings per share reached $1.87, beating analysts’ expectations of $1.78. This success stemmed from strong growth in all-flash storage and cloud services, highlighted by a 43% year-over-year increase in cloud storage. Following this report, NetApp’s stock rose by over 2%, signaling solid investor confidence. The company also upgraded its full-year earnings forecast, further enhancing market sentiment.
Market Sentiment for NTAP Stock
The consensus on NTAP stock remains positive, with a “Moderate Buy” rating overall. Out of 19 analysts monitoring the stock, six recommend a “Strong Buy,” 12 suggest a “Hold,” and one rates it a “Moderate Sell.”
Analysts set an average price target of $140.20 for NTAP, indicating a potential upside of 16.9% from current prices.
On the date of publication, Kritika Sarmah 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.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
