NEW YORK, May 29, 2026, 13:06 (EDT)
NetApp shares surged over 26% in midday trading Friday, after the data-storage company topped quarterly estimates and gave an upbeat forecast linked to enterprise AI demand. The stock traded at $180.12 at 1:06 p.m. EDT, having earlier approached $190.
AI projects are moving into real business use, and that has changed how investors look at storage. It’s not just basic infrastructure anymore. Companies are pushing more data between data centers and public clouds, and need better access to it. NetApp said demand for AI, cloud and all-flash helped its latest quarter.
NetApp posted net revenue of $1.948 billion in its fiscal fourth quarter, up 12% from last year. Non-GAAP earnings climbed 26% to $2.43 per share, while GAAP earnings were $2.03 per share. CEO George Kurian said fiscal 2026 will be a “landmark year.”
All-flash arrays pulled in $1.2 billion in revenue for the quarter, an 18% increase and a new high. Public Cloud revenue was up 11% at $182 million. Free cash flow climbed 41% to $900 million after capital spending.
NetApp kept pushing its AI story. CEO Kurian said in prepared comments the company saw about 500 AI and data-prep deals in the fourth quarter, totaling more than 1,100 for the year. CFO Wissam Jabre said the company’s outlook showed a “solid underlying enterprise IT demand environment,” with more AI activity expected from fiscal 2026.
NetApp is guiding for fiscal 2027 revenue between $7.325 billion and $7.575 billion, with adjusted EPS ranging from $8.70 to $9.00. For the current quarter, the company sees revenue at $1.75 billion to $1.90 billion and adjusted earnings per share in the $2.05 to $2.15 range.
Barclays analyst Tim Long called NetApp’s results “solid growth across the board” and Barclays boosted its price target to $199 from $120, sticking with an Overweight rating. Loop Capital also upped its target, taking it to $200 from $130. Several firms with neutral ratings raised targets too. Seeking Alpha MarketScreener
Not all analysts seemed keen to follow the rally. Wedbush called management’s goals “appear conservative,” but said most of NetApp’s upside looked priced in. The firm kept its Neutral rating and upped its target to $150 from $115. MarketScreener
Tech stocks jumped as AI infrastructure plays rallied. Dell shot up almost 30% after it boosted its outlook. Hewlett Packard Enterprise and Super Micro Computer moved higher, too. The gains helped drive the tech sector and sent major U.S. indexes to fresh intraday highs.
The downside is clear. NetApp warned that demand could be pulled forward from future quarters. Higher memory and component costs could push it to change prices, risking margins if customers resist. If enterprise AI spending slows, holding the fiscal 2027 outlook could get tougher.
NetApp shares caught a boost in Friday trading, putting the stock back in the thick of AI hardware talk. The key now is if NetApp can turn the surge of AI and cloud orders into reliable revenue and not just a one-off jump for the stock.
