Key Takeaways
- NetApp shares skyrocketed approximately 33% on Friday to near $189, poised to eclipse its October 2000 all-time high of $148.63
- Fourth quarter revenue reached $1.95B, surpassing the $1.87B estimate; earnings per share of $2.03 fell short of the $2.27 consensus
- Fiscal year 2027 revenue outlook of $7.33B–$7.58B exceeded Wall Street’s $7.20B projection
- The company unveiled a $1 billion buyback authorization and maintained its quarterly dividend payment
- Northland Securities boosted its target to $171 with an outperform designation; the consensus analyst target remains at $127.18
NetApp (NTAP) is positioned to achieve a milestone not seen in more than two decades — breaking through its dot-com bubble all-time high.
Shares exploded roughly 33% higher on Friday to approximately $189 following the company’s robust fiscal fourth quarter earnings report released Thursday evening. This surge propels the stock beyond its previous record of $148.63 established on October 20, 2000, a threshold untouched since the internet era boom.
The rally would also represent NTAP’s most significant single-session advance since December 5, 2000, when shares jumped 41%.
NetApp joins a select group including Intel, Cisco, and Corning as technology companies from the dot-com period that have successfully reclaimed — or are approaching — their year-2000 highs.
Strong Revenue Performance, Earnings Miss Target
Fourth quarter revenue totaled $1.95 billion, representing a 12.5% year-over-year increase and exceeding the $1.87B analyst consensus. Earnings per share registered at $2.03, falling short of the $2.27 Wall Street estimate by $0.24.
Various financial data sources report adjusted EPS at $2.43, which would beat estimates by $0.16 — this discrepancy likely stems from differences between adjusted and GAAP reporting methodologies.
Regardless of the accounting treatment, the revenue performance and forward-looking projections sparked significant investor enthusiasm.
For fiscal 2027, NetApp projected EPS ranging from $8.70 to $9.00 compared to the $8.53 consensus, alongside revenue guidance of $7.33B–$7.58B versus the $7.20B Wall Street forecast.
First quarter 2027 outlook similarly exceeded expectations, with EPS anticipated between $2.05 and $2.15 against the $1.84 consensus, and revenue projected at $1.75B–$1.90B compared to $1.67B.
Chief Executive George Kurian attributed the performance to the company’s cloud intelligent data infrastructure platform, which is enabling AI-powered workloads across enterprise clients.
Wall Street Responds
Analyst sentiment remains mixed despite the impressive results. Northland Securities increased its price objective from $137 to $171 while maintaining an outperform rating — though that target still suggested potential downside before Thursday’s after-hours surge.
Barclays confirmed its overweight rating. Bank of America elevated its target to $150 but retained a Hold designation. Morgan Stanley raised its objective to $137 while keeping an Underweight perspective.
Citigroup downgraded NetApp from neutral to mixed on May 14. JPMorgan shifted the stock from overweight to neutral in April and reduced its target to $110.
The consensus analyst price target stands at $127.18, significantly below Friday’s trading level. Among 13 tracked analysts, five recommend Buy, seven suggest Hold, and one advises Sell.
NetApp also revealed a fresh $1 billion share repurchase authorization in addition to its quarterly dividend — a strategic move demonstrating management’s confidence in the company’s financial position.
The stock commenced Friday trading at $183.22. Its 52-week trading range had previously been $93.69 to $170.97, making Friday’s movement well beyond prior boundaries.
Return on equity measures 118.11%, accompanied by a net margin of 18.07%.
Institutional ownership accounts for 92.17% of outstanding shares. Over the preceding three months, company insiders divested 3,275 shares valued at approximately $347,650.
Before Friday’s dramatic advance, the stock had already climbed roughly 43% during the trailing 12 months and 43% over the most recent three-month period.
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