Quick Summary
- NetApp stock skyrocketed approximately 33% on Friday, reaching around $189 and positioned to surpass its October 2000 dot-com peak of $148.63
- Fiscal Q4 revenue reached $1.95B, exceeding the $1.87B analyst forecast; earnings per share of $2.03 fell short of the $2.27 consensus
- Fiscal year 2027 revenue outlook of $7.33B–$7.58B surpassed Wall Street’s $7.20B projection
- Company unveiled a $1 billion buyback program along with maintaining its quarterly dividend payment
- Northland Securities boosted their price objective to $171 with an outperform stance; consensus analyst target remains at $127.18
NetApp (NTAP) is poised to achieve a milestone it last reached over two decades ago — climbing beyond its peak from the dot-com era.
Shares exploded roughly 33% higher on Friday, touching approximately $189 following the data storage company’s impressive fiscal fourth-quarter earnings report released Thursday evening. This propels the stock well beyond the $148.63 all-time high established on October 20, 2000, a threshold untouched since the height of the internet bubble.
The rally would also represent NTAP’s strongest single-session performance since December 5, 2000, when shares rocketed 41% higher.
NetApp becomes part of an exclusive group alongside Intel, Cisco, and Corning — all dot-com era technology companies that have successfully reclaimed or are approaching their year-2000 valuation peaks.
Top-Line Strength Overshadows Bottom-Line Shortfall
Fiscal fourth-quarter revenue climbed to $1.95 billion, representing a 12.5% year-over-year increase and surpassing the consensus estimate of $1.87B. Earnings per share registered at $2.03, falling $0.24 short of the $2.27 analyst projection.
Variance exists across different reporting sources, with some citing adjusted EPS of $2.43, which would represent a $0.16 beat over expectations — this discrepancy appears to stem from adjusted versus GAAP reporting methodologies.
Regardless of the specific earnings figure, the robust revenue performance and particularly strong forward-looking guidance captured investor attention and drove the massive rally.
For fiscal year 2027, NetApp projected EPS in the range of $8.70–$9.00 compared to the $8.53 consensus view, alongside revenue guidance of $7.33B–$7.58B versus Street estimates of $7.20B.
First-quarter 2027 projections similarly exceeded expectations, with anticipated EPS of $2.05–$2.15 against a $1.84 consensus, and revenue forecasted between $1.75B–$1.90B compared to the $1.67B estimate.
Chief Executive Officer George Kurian attributed the company’s performance to its cloud intelligent data infrastructure platform, which he said is enabling AI-powered workloads across enterprise customer bases.
Wall Street Response Remains Mixed
Despite the explosive price action, analyst sentiment varies considerably. Northland Securities elevated its price objective from $137 to $171 while maintaining an outperform rating — though notably, even this upgraded target implied downside from Thursday’s closing price before the surge.
Barclays reiterated its overweight rating on the shares. Bank of America increased its target to $150 while retaining a Hold recommendation. Morgan Stanley raised its objective to $137 but continues with an Underweight perspective.
Citigroup downgraded NetApp from neutral to mixed on May 14. JPMorgan removed its overweight rating back in April, shifting to neutral with a reduced price target of $110.
The consensus analyst price target currently stands at $127.18, substantially below Friday’s trading levels. Among 13 tracked analysts, five maintain Buy ratings, seven recommend Hold positions, and one advises selling.
NetApp also revealed a fresh $1 billion share repurchase authorization accompanying its quarterly dividend — a strategic move signaling management’s confidence in the company’s financial position.
Shares opened Friday trading at $183.22. The previous 52-week trading range spanned from $93.69 to $170.97, making Friday’s advance a significant breakout from recent boundaries.
The company’s return on equity measures 118.11%, complemented by a net profit margin of 18.07%.
Institutional ownership comprises 92.17% of outstanding shares. Over the preceding three months, company insiders disposed of 3,275 shares valued at approximately $347,650.
Prior to Friday’s explosive rally, the stock had already appreciated roughly 43% over the trailing twelve months and advanced 43% in just the past three months.
