NetApp (NTAP) Stock Rockets 33% As AI Demand Powers Record Revenue

TLDR

• NetApp stock jumped ~33% Friday to around $189, set to break its dot-com era record high of $148.63 from October 2000
• Q4 revenue came in at $1.95B, beating estimates of $1.87B; EPS of $2.03 missed the $2.27 consensus
• Full-year FY2027 guidance of $7.33B–$7.58B topped Wall Street’s $7.20B estimate
• NetApp announced a $1 billion share repurchase program and a quarterly dividend
• Northland Securities raised its price target to $171 with an outperform rating; average analyst target sits at $127.18

NetApp (NTAP) is on track to do something it hasn’t done in 26 years — trade above its dot-com bubble peak.

NetApp, Inc., NTAP

The stock surged around 33% Friday to roughly $189 after the company posted strong fiscal Q4 results late Thursday. That puts it above the $148.63 record set on October 20, 2000, a level the stock hasn’t seen since the internet boom.

It would also mark NTAP’s best single-day gain since December 5, 2000, when it jumped 41%.

NetApp joins Intel, Cisco, and Corning as dot-com era names that have now reclaimed — or are close to reclaiming — their year-2000 peaks.

Revenue Beats, EPS Misses

Q4 revenue hit $1.95 billion, up 12.5% year over year and ahead of the $1.87B consensus. EPS came in at $2.03, which missed the $2.27 analyst estimate by $0.24.

Depending on which data source you check, some reports cite adjusted EPS of $2.43, beating estimates by $0.16 — the difference likely reflects adjusted versus GAAP figures.

Either way, the revenue number and the forward guidance are what got investors moving.

For FY2027, NetApp guided for EPS of $8.70–$9.00 versus the $8.53 consensus, and revenue of $7.33B–$7.58B versus the $7.20B estimate.

Q1 2027 guidance also topped expectations, with EPS seen at $2.05–$2.15 against a $1.84 consensus, and revenue of $1.75B–$1.90B versus $1.67B.

CEO George Kurian credited the company’s cloud intelligent data infrastructure platform for powering AI-driven work at enterprise customers.

Analyst Reaction

Not everyone is piling in. Northland Securities raised its price target from $137 to $171 and kept an outperform rating — though that still implied downside from Thursday’s close before the surge.

Barclays reissued an overweight rating. Bank of America raised its target to $150 but held its Hold rating. Morgan Stanley lifted its target to $137 but kept an Underweight view.

Citigroup cut NetApp from neutral to mixed on May 14. JPMorgan dropped the stock from overweight to neutral back in April and cut its target to $110.

The average analyst price target sits at $127.18, well below where the stock is trading Friday. Of 13 analysts tracked, five have a Buy, seven have a Hold, and one has a Sell.

NetApp also announced a new $1 billion share repurchase program alongside the quarterly dividend — a move that signals management confidence in the balance sheet.

The stock opened Friday at $183.22. Its 52-week range had been $93.69 to $170.97, making Friday’s move well outside previous expectations.

Return on equity stands at 118.11%, with a net margin of 18.07%.

Institutional investors hold 92.17% of the stock. In the past three months, insiders sold 3,275 shares worth approximately $347,650.

Prior to Friday’s move, the stock was already up around 43% over the last 12 months and 43% in the last three months alone.

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