📊 NTAP Key Takeaways
Is NetApp, Inc. (NTAP) a Good Investment?
NetApp demonstrates exceptional operational efficiency and cash generation with 78.5% gross margins, 30% free cash flow margins, and EPS growth of 12% despite a 9.9% revenue decline, indicating strong cost management and margin expansion. However, the top-line contraction and elevated debt-to-equity ratio of 1.84x require revenue stabilization to sustain long-term profitability and deleveraging.
NetApp shows strong fundamental quality through high gross and operating margins, double-digit earnings growth, and robust free cash flow generation on modest top-line growth. The business appears financially healthy with solid liquidity and strong interest coverage, though leverage is elevated and the very high ROE is partly driven by a thin equity base rather than purely operating strength.
NetApp, Inc. Key Strengths (NTAP)
- Exceptional profitability margins (78.5% gross, 26.8% operating, 20.5% net margin) demonstrating pricing power and operational efficiency
- Outstanding free cash flow of $1.9B with 30% FCF margin, showing high-quality earnings and cash generation capability
- Strong earnings growth trajectory with EPS up 12% and net income up 7.6% YoY despite revenue decline, indicating effective cost management
- High profitability profile with 71.0% gross margin, 22.9% operating margin, and 17.5% net margin
- Strong cash generation with $969.00M in free cash flow and a 19.5% FCF margin
- Earnings quality looks solid as net income grew 20.3% and diluted EPS grew 22.5%, outpacing revenue growth of 4.9%
NTAP Stock Risks: NetApp, Inc. Investment Risks
- Significant revenue contraction of 9.9% YoY raises concerns about market demand and long-term sustainability of profitability
- Elevated debt-to-equity ratio of 1.84x combined with declining revenue creates financial flexibility constraints and refinancing risks
- Margin expansion amid declining revenue may be unsustainable if driven by cost-cutting rather than operating leverage, risking future profitability
- Revenue growth is modest, which may limit upside if margin expansion slows
- Leverage is elevated with 2.15x debt-to-equity and only $1.16B of equity supporting the balance sheet
- ROE of 75.3% is flattered by a very small equity base, so it overstates underlying operating returns
Key Metrics to Watch
- Revenue growth stabilization and return to positive YoY growth as primary indicator of business health
- Free cash flow sustainability and conversion rate as revenue scales to assess earnings quality
- Debt-to-equity ratio trend and absolute debt levels to ensure financial stability and deleveraging progress
- Revenue growth relative to EPS and free cash flow growth
- Debt levels and stockholders equity trend
NetApp, Inc. (NTAP) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 30.0% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments.
NTAP Profit Margin, ROE & Profitability Analysis
NTAP vs Technology Sector: How NetApp, Inc. Compares
How NetApp, Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is NetApp, Inc. Stock Overvalued? NTAP Valuation Analysis 2026
Based on fundamental analysis, NetApp, Inc. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
NetApp, Inc. Balance Sheet: NTAP Debt, Cash & Liquidity
NTAP Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: NetApp, Inc.'s revenue has shown modest growth of 10% over the 5-year period. The most recent EPS of $4.63 reflects profitable operations.
NTAP Revenue Growth, EPS Growth & YoY Performance
NTAP Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $1.6B | $299.0M | $1.44 |
| Q3 2025 | $1.6B | $299.0M | $1.44 |
| Q2 2025 | $1.6B | $233.0M | $1.10 |
| Q1 2025 | $1.4B | $149.0M | $0.69 |
| Q3 2024 | $1.5B | $65.0M | $0.30 |
| Q2 2024 | $1.6B | $233.0M | $1.10 |
| Q1 2024 | $1.4B | $149.0M | $0.69 |
| Q3 2023 | $1.5B | $65.0M | $0.30 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
NetApp, Inc. Dividends, Buybacks & Capital Allocation
NTAP SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for NetApp, Inc. (CIK: 0001002047)
📋 Recent SEC Filings
❓ Frequently Asked Questions about NTAP
What is the AI rating for NTAP?
NetApp, Inc. (NTAP) has a Combined AI Grade of A from Claude (A) and ChatGPT (A) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are NTAP's key strengths?
Claude: Exceptional profitability margins (78.5% gross, 26.8% operating, 20.5% net margin) demonstrating pricing power and operational efficiency. Outstanding free cash flow of $1.9B with 30% FCF margin, showing high-quality earnings and cash generation capability. ChatGPT: High profitability profile with 71.0% gross margin, 22.9% operating margin, and 17.5% net margin. Strong cash generation with $969.00M in free cash flow and a 19.5% FCF margin.
What are the risks of investing in NTAP?
Claude: Significant revenue contraction of 9.9% YoY raises concerns about market demand and long-term sustainability of profitability. Elevated debt-to-equity ratio of 1.84x combined with declining revenue creates financial flexibility constraints and refinancing risks. ChatGPT: Revenue growth is modest, which may limit upside if margin expansion slows. Leverage is elevated with 2.15x debt-to-equity and only $1.16B of equity supporting the balance sheet.
What is NTAP's revenue and growth?
NetApp, Inc. reported revenue of $6.2B.
Does NTAP pay dividends?
NetApp, Inc. pays dividends, with $413.0M distributed to shareholders in the trailing twelve months.
Where can I find NTAP SEC filings?
Official SEC filings for NetApp, Inc. (CIK: 0001002047) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is NTAP's EPS?
NetApp, Inc. has a diluted EPS of $6.35.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is NTAP's fundamental grade?
Based on our AI fundamental analysis in June 2026, NetApp, Inc. has a A grade with 76% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is NTAP stock overvalued or undervalued?
Valuation metrics for NTAP: ROE of 94.4% (sector avg: 22%), net margin of 20.5% (sector avg: 18%). Higher ROE suggests strong returns relative to peers.
What is NTAP's AI grade for 2026?
Our dual AI analysis gives NetApp, Inc. a combined A grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is NTAP's free cash flow?
NetApp, Inc.'s operating cash flow is $2.1B, with capital expenditures of $198.0M. FCF margin is 30.0%.
How does NTAP compare to other Technology stocks?
Vs Technology sector averages: Net margin 20.5% (avg: 18%), ROE 94.4% (avg: 22%), current ratio 1.44 (avg: 2.5).
Is NetApp, Inc. carrying too much debt?
NTAP has a debt-to-equity ratio of 1.84x, which is above the Technology sector average of 0.5x. However, the current ratio of 1.44 suggests adequate short-term liquidity.
Why is NTAP's return on equity (ROE) so high?
NetApp, Inc. has a return on equity of 94.4%, significantly above the Technology sector average of 22%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 20.5% net margin.