NetApp (NTAP, Financial) has partnered with Nvidia to integrate the Nvidia AI Data Platform reference design into its NetApp AIPod solution, aiming to streamline the enterprise adoption of advanced AI technologies. By leveraging the robust data management capabilities of NetApp Ontap, the enhanced NetApp AIPod will enable companies to construct AI data pipelines that are secure, governed, and scalable. These pipelines will be instrumental for retrieval-augmented generation and inferencing, supporting businesses in their AI initiatives.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 15 analysts, the average target price for NetApp Inc (NTAP, Financial) is $118.76 with a high estimate of $150.00 and a low estimate of $100.00. The average target implies an upside of 18.13% from the current price of $100.53. More detailed estimate data can be found on the NetApp Inc (NTAP) Forecast page.
Based on the consensus recommendation from 22 brokerage firms, NetApp Inc's (NTAP, Financial) average brokerage recommendation is currently 2.6, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for NetApp Inc (NTAP, Financial) in one year is $90.29, suggesting a downside of 10.19% from the current price of $100.53. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the NetApp Inc (NTAP) Summary page.
NTAP Key Business Developments
Release Date: February 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- NetApp Inc (NTAP, Financial) delivered a 2% year-over-year revenue growth in Q3 FY25, with an operating margin of 30%, exceeding expectations.
- The All Flash array business grew by 10%, reaching an annualized revenue run rate of $3.8 billion.
- Keystone, NetApp Inc (NTAP)'s storage as a service offering, saw a revenue increase of nearly 60% year-over-year.
- Public cloud segment revenue grew by 15%, driven by first-party and marketplace cloud storage services.
- NetApp Inc (NTAP) was named a customer's choice for primary storage in Gartner's 2025 Voice of the Customer report, highlighting strong market recognition.
Negative Points
- NetApp Inc (NTAP) experienced inconsistent sales execution, leading to some deals slipping out of Q3.
- The company adjusted its Q4 and FY25 outlook due to the divestiture of Spot by NetApp and global public sector headwinds.
- Support revenue declined by 2% year-over-year, although it was roughly flat in constant currency.
- Operating cash flow decreased to $385 million from $484 million a year ago, primarily due to lower collections and higher cash outflows.
- The company faced a negative impact from a stronger USD, affecting reported revenue and EPS.
