Key Takeaways
- NetApp shares skyrocketed approximately 33% on Friday, reaching around $189 and surpassing its previous all-time high of $148.63 from October 2000
- Fourth-quarter revenue reached $1.95B, exceeding analyst projections of $1.87B; earnings per share of $2.03 fell short of the $2.27 forecast
- Fiscal year 2027 revenue guidance of $7.33B–$7.58B significantly exceeded Wall Street’s $7.20B projection
- Company unveiled a $1 billion buyback initiative alongside its quarterly dividend payment
- Northland Securities boosted its target price to $171 with an outperform designation; consensus analyst target remains at $127.18
NetApp (NTAP) is poised to achieve a milestone not reached in more than two decades — exceeding its peak valuation from the dot-com era.
Shares exploded approximately 33% on Friday, climbing to roughly $189 following the company’s impressive fiscal fourth-quarter earnings release on Thursday evening. This surge propelled the stock beyond its historical peak of $148.63, established on October 20, 2000, during the height of the internet bubble.
This performance would represent NTAP’s strongest single-session gain since December 5, 2000, when shares jumped 41%.
NetApp now stands alongside Intel, Cisco, and Corning as technology companies from the dot-com era that have successfully reclaimed or approached their year-2000 valuations.
Strong Revenue Performance, Earnings Miss Target
Fourth-quarter revenue climbed to $1.95 billion, representing a 12.5% year-over-year increase and surpassing the analyst consensus of $1.87B. Earnings per share registered at $2.03, falling $0.24 short of the $2.27 Wall Street forecast.
Various financial sources report adjusted EPS of $2.43, which would represent a $0.16 beat above expectations — this discrepancy appears to stem from differences between adjusted and GAAP reporting methodologies.
Regardless of the EPS interpretation, the strong revenue figure coupled with optimistic forward projections drove investor enthusiasm.
For fiscal 2027, NetApp provided earnings guidance of $8.70–$9.00 per share versus the $8.53 Street estimate, while revenue projections of $7.33B–$7.58B exceeded the $7.20B consensus.
First-quarter 2027 projections also surpassed expectations, with EPS forecast at $2.05–$2.15 compared to the $1.84 consensus, and revenue guidance of $1.75B–$1.90B versus the $1.67B estimate.
Chief Executive Officer George Kurian attributed the company’s success to its cloud intelligent data infrastructure platform, which has become essential for enterprise customers pursuing AI-driven initiatives.
Wall Street’s Mixed Response
Analyst sentiment remains divided despite the impressive results. Northland Securities increased its price target from $137 to $171 while maintaining an outperform rating — though this still suggested potential downside from Thursday’s closing price before the massive rally.
Barclays confirmed its overweight rating. Bank of America elevated its target to $150 while maintaining a Hold designation. Morgan Stanley raised its target to $137 but retained an Underweight perspective.
Citigroup downgraded NetApp from neutral to mixed on May 14. JPMorgan previously reduced the stock from overweight to neutral in April, simultaneously cutting its price target to $110.
The consensus analyst price target currently stands at $127.18, considerably below Friday’s trading levels. Among 13 tracked analysts, five recommend Buy, seven suggest Hold, and one rates it Sell.
NetApp additionally revealed a fresh $1 billion share repurchase authorization along with its quarterly dividend — demonstrating management’s conviction in the company’s financial strength.
Shares opened Friday trading at $183.22. The 52-week trading range had previously been $93.69 to $170.97, making Friday’s movement significantly beyond prior boundaries.
Return on equity measures 118.11%, accompanied by an 18.07% net profit margin.
Institutional ownership accounts for 92.17% of outstanding shares. Over the preceding three months, company insiders disposed of 3,275 shares valued at approximately $347,650.
Before Friday’s dramatic surge, the stock had already appreciated roughly 43% over the trailing twelve months and gained 43% during the most recent three-month period.
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