NetApp Raises Fiscal 2027 Targets After Record Quarter

NetApp Inc. (NASDAQ: NTAP) raised its fiscal 2027 targets after reporting its strongest first quarter on record, with revenue of $2.03 billion, up about 30% year over year, against roughly $1.84 billion expected.

Non-GAAP earnings came in at $2.58 per share against consensus of $2.12, an increase of about 66% year over year. Net income was $375 million, with gross margin at 70.6% and operating margin above 26%.

The mix explains the result. All-flash storage grew 47% and the Public Cloud segment grew 28%, the two areas NetApp has been steering toward as AI workloads have pushed enterprises to consolidate data onto faster tiers.

Management lifted full year fiscal 2027 guidance to revenue of $7.975 billion to $8.225 billion and earnings of $9.73 to $10.03 per share, both materially above prior guidance and consensus. Second quarter guidance also came in above expectations.

Analysts moved targets up in response. Barclays raised its target to $219 and described the outlook as conservative. Northland moved to $187, Susquehanna to $195 and Morgan Stanley to $191, with the latter flagging some demand pull forward and modest gross margin pressure. NetApp shares rose about 8% on 11 September and are up 75.8% year to date.

On product, NetApp has validated ONTAP for VMware Cloud Foundation 9.1 and integrated Amazon FSx for NetApp ONTAP into AWS Transform, alongside its acquisition of DataPelago. A quarterly dividend of $0.52 carries an ex-date of 9 October.

Tech Seller USA supplies NetApp storage hardware, including FAS and AFF disk shelf drives and shelf spares with NetApp firmware, alongside a wider range of enterprise hard drives.