📊 NTAP Key Takeaways
Is NetApp, Inc. (NTAP) a Good Investment?
NetApp demonstrates exceptional operational efficiency with 71% gross margins and 22.9% operating margins, coupled with impressive profitability growth (net income +20.3% YoY). Strong free cash flow generation of $969M and robust interest coverage of 17.8x indicate solid financial health despite elevated leverage, positioning the company well for continued shareholder value creation.
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.
Why Buy NetApp, Inc. Stock? NTAP Key Strengths
- Outstanding profitability metrics with 71% gross margin and 17.5% net margin indicating pricing power and operational excellence
- Strong earnings momentum with net income up 20.3% YoY and EPS up 22.5% YoY demonstrating accelerating profitability
- Excellent free cash flow generation of $969M (19.5% FCF margin) providing substantial financial flexibility
- Superior return on equity of 75.3% reflecting efficient capital utilization
- Healthy interest coverage ratio of 17.8x despite 2.15x debt-to-equity ratio indicating manageable debt burden
- 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
- Elevated leverage with debt-to-equity ratio of 2.15x and long-term debt of $2.5B relative to $1.2B equity requires monitoring
- Modest revenue growth of 4.9% YoY suggests slower topline expansion in storage devices market
- Current ratio of 1.39x indicates moderate liquidity position; potential working capital pressure if growth slows
- 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 trajectory to confirm market demand beyond recent 4.9% pace
- Operating margin sustainability as gross margins may face competitive or supply chain pressures
- Debt reduction progress given elevated leverage, particularly using strong FCF generation
- 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
NetApp, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
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 7% over the 5-year period. The most recent EPS of $5.79 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 Rating of BUY from Claude (STRONG BUY) and ChatGPT (BUY) with 82% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are NTAP's key strengths?
Claude: Outstanding profitability metrics with 71% gross margin and 17.5% net margin indicating pricing power and operational excellence. Strong earnings momentum with net income up 20.3% YoY and EPS up 22.5% YoY demonstrating accelerating profitability. 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: Elevated leverage with debt-to-equity ratio of 2.15x and long-term debt of $2.5B relative to $1.2B equity requires monitoring. Modest revenue growth of 4.9% YoY suggests slower topline expansion in storage devices market. 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 $5.0B.
Does NTAP pay dividends?
NetApp, Inc. pays dividends, with $310.0M 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 $4.32.
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 rating reflects both perspectives for balanced insights.
Is NTAP a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, NetApp, Inc. has a BUY rating with 82% 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 75.3% (sector avg: 22%), net margin of 17.5% (sector avg: 18%). Higher ROE suggests strong returns relative to peers.
Should I buy NTAP stock in 2026?
Our dual AI analysis gives NetApp, Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is NTAP's free cash flow?
NetApp, Inc.'s operating cash flow is $1.1B, with capital expenditures of $148.0M. FCF margin is 19.5%.
How does NTAP compare to other Technology stocks?
Vs Technology sector averages: Net margin 17.5% (avg: 18%), ROE 75.3% (avg: 22%), current ratio 1.39 (avg: 2.5).
Is NetApp, Inc. carrying too much debt?
NTAP has a debt-to-equity ratio of 2.15x, which is above the Technology sector average of 0.5x. However, the current ratio of 1.39 suggests adequate short-term liquidity.
Why is NTAP's return on equity (ROE) so high?
NetApp, Inc. has a return on equity of 75.3%, 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 17.5% net margin.