NetApp (NTAP) just closed out FY 2026 with fourth quarter revenue of US$1,948 million and basic EPS of US$2.05, alongside net income of US$404 million, setting a clear marker for how the year finished. Over the last six quarters, revenue has moved from US$1,641 million in Q3 FY 2025 to US$1,732 million in Q4 FY 2025 and then to US$1,948 million in Q4 FY 2026. Over that same span, quarterly EPS ranged from US$1.47 to US$2.05, giving a view of how the top and bottom lines have tracked together. With trailing twelve month net profit margin sitting in the high teens, this latest print places profitability and earnings trends at the center of the story investors are assessing.

See our full analysis for NetApp.

With the headline numbers on the table, the next step is to compare this earnings profile with the key narratives around NetApp's growth potential, risks, and long term profitability story.

TTM earnings and margins set the base

• Over the last twelve months, NetApp generated US$6.9b of revenue and US$1.3b of net income, with trailing EPS of US$6.41 and a net profit margin of 18.4%, compared with 18.0% a year earlier.
• Consensus narrative points to AI and hybrid cloud as major drivers of future growth, and these trailing figures give some context:
  • Analysts expect earnings to reach about US$1.7b with EPS of roughly US$8.57 by around 2029, versus the current trailing net income of US$1.3b and EPS of US$6.41.
  • That same view assumes profit margins move from 18.4% to 20.5% in three years, which would be a step up from the current TTM margin profile investors are looking at today.

Quarterly momentum and AI bull case

• Within FY 2026, quarterly revenue rose from US$1,559 million in Q1 to US$1,948 million in Q4, while quarterly EPS moved from US$1.16 to US$2.05 over the same span, and trailing earnings growth is described at 7.6% year over year with a 5.5% five year earnings growth rate.
• Bulls argue that AI and cloud growth can support this earnings profile, and the current numbers partly back that view:
  • The bullish narrative highlights roughly 1,100 AI and data preparation wins in FY 2026, alongside forecast earnings growth of about 9.1% per year, compared with the 5.5% annualized earnings growth over the last five years.
  • Public Cloud revenue of US$688 million, a higher mix of software and services, and all flash revenue of US$4.2b sit behind the idea that subscription and premium storage can support margins around the current 18.4% level or higher over time.

On these numbers, bulls are focused on whether AI wins and cloud subscriptions can keep EPS growth near that 9.1% forecast pace over the coming years, which they lay out in detail in the 🐂 NetApp Bull Case.

Valuation tension and cautious narrative

• At a share price of US$167.04, the stock sits about 2.1% below a DCF fair value of roughly US$170.57, while trading on a P/E of 25.6x compared with 24.9x for the Global Tech industry and 40.8x for its peer group.
• Bears focus on whether growth justifies paying slightly more than the broader tech industry, and the reported figures give a mixed picture:
  • Consensus expects revenue to grow about 6.3% per year, which is below the cited 11.8% annual growth for the broader US market, so some investors might question paying a P/E that is higher than the Global Tech average even though it is lower than the 40.8x peer average.
  • At the same time, trailing margins at 18.4% and five year earnings growth of 5.5% per year show a steady, but not explosive, profile, which cautious investors weigh against risks such as competition from hyperscalers and the shift toward subscription models.

Skeptics are essentially asking whether a 25.6x P/E and only a small discount to the DCF fair value leave enough room for slower revenue growth or margin pressure, which is unpacked further in the 🐻 NetApp Bear Case.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for NetApp on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

With both risks and rewards on the table, does the current story feel compelling enough for you? Take a closer look at the full picture through the 3 key rewards and 1 important warning sign.

See What Else Is Out There

NetApp's earnings profile relies on steady margins and AI optimism, while revenue growth expectations and a 25.6x P/E raise questions about value relative to the risk.

If you are unsure about paying up for that kind of earnings profile, check out 49 high quality undervalued stocks to quickly spot stocks where pricing looks more compelling today.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.