NetApp, Inc. (NASDAQ:NTAP) Just Reported Yearly Earnings: Have Analysts Changed Their Mind On The Stock?
Last week saw the newest annual earnings release from NetApp, Inc. (NASDAQ:NTAP), an important milestone in the company's journey to build a stronger business. NetApp reported US$6.6b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$5.67 beat expectations, being 3.0% higher than what the analysts expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
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Following the latest results, NetApp's 18 analysts are now forecasting revenues of US$6.78b in 2026. This would be a modest 3.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 4.2% to US$6.07. In the lead-up to this report, the analysts had been modelling revenues of US$6.85b and earnings per share (EPS) of US$5.88 in 2026. So the consensus seems to have become somewhat more optimistic on NetApp's earnings potential following these results.
See our latest analysis for NetApp
There's been no major changes to the consensus price target of US$115, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic NetApp analyst has a price target of US$135 per share, while the most pessimistic values it at US$100.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await NetApp shareholders.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 3.1% growth on an annualised basis. That is in line with its 3.3% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 5.6% per year. So although NetApp is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around NetApp's earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that NetApp's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$115, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for NetApp going out to 2028, and you can see them free on our platform here.
You can also see our analysis of NetApp's Board and CEO remuneration and experience, and whether company insiders have been buying stock.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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