TLDR
- NetApp stock surges as AI data demand powers record Q4 revenue
- NTAP jumps after strong earnings, cash flow, and FY2027 outlook
- NetApp posts record profit as hybrid cloud and AI demand expand
- NTAP rallies after Q4 revenue beats and fiscal 2027 guidance rises
- NetApp gains as AI storage demand drives profit and cloud growth
NetApp (NTAP) stock rallied after the company posted record quarterly and full-year results, driven by stronger cloud demand and AI data infrastructure growth. NTAP closed at $142.40, down 0.24%, before rising to $162.00 after hours, up 13.76%. The move followed stronger revenue, profit, cash flow, and fiscal 2027 guidance.
NetApp Reports Record Revenue and Profit Growth
NetApp reported fourth-quarter revenue of $1.95 billion for fiscal 2026, up 12% from the prior year. The company also posted full-year revenue of $6.93 billion, up 5% year over year. Growth came as enterprises increased spending on hybrid cloud systems and AI-ready data platforms.
GAAP net income reached $404 million in the fourth quarter, compared with $340 million a year earlier. GAAP earnings per share rose 23% to $2.03, while non-GAAP earnings reached $2.43 per share. Additionally, free cash flow climbed 41% to $900 million during the quarter.
For the full year, NetApp generated $1.87 billion in free cash flow, up 40% from fiscal 2025. Operating cash flow also rose 37% to $2.07 billion. Moreover, the company returned $1.36 billion to shareholders through buybacks and dividends.
AI Data Demand Supports Hybrid Cloud Expansion
Hybrid Cloud revenue reached $1.77 billion in the fourth quarter, rising 13% year over year. The segment remained NetApp’s largest business, supported by enterprise storage demand and workload modernization. Public Cloud revenue also increased 11% to $182 million.
NetApp strengthened its AI data strategy through new platforms, cloud services, and partner integrations. The company launched AI Data Engine with NVIDIA to help enterprises manage and prepare data for production AI workloads. It also introduced new EF50 and EF80 storage systems for AI, databases, and high-performance computing.
The company expanded partnerships with Google Cloud, Nutanix, Commvault, Red Hat, Microsoft, and AWS. These deals support hybrid cloud, ransomware recovery, virtualization, and cloud-native workloads. Besides, NetApp’s Google Cloud storage work earned another infrastructure modernization award in 2026.
Fiscal 2027 Outlook Adds Momentum
NetApp guided first-quarter fiscal 2027 revenue between $1.75 billion and $1.90 billion. The company expects non-GAAP earnings per share between $2.05 and $2.15. It also projects non-GAAP operating margin between 28.4% and 29.4%.
For full fiscal 2027, NetApp expects revenue between $7.33 billion and $7.58 billion. Non-GAAP earnings per share should range from $8.70 to $9.00. Hence, the outlook points to continued growth after a record fiscal 2026.
NetApp also declared a quarterly cash dividend of $0.52 per share. The dividend will be paid on July 29, 2026, to holders recorded on July 10, 2026. Consequently, the earnings report reinforced NTAP’s position as an AI data infrastructure and hybrid cloud growth name.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
