NetApp (NTAP) is expected to report fiscal Q1 results above guidance and raise its full-year outlook, as stronger primary storage demand and market-share gains support growth, Oppenheimer said in a report Thursday.
The company is scheduled to report its quarterly results on Sept. 2.
The firm expects Q1 revenue to exceed NetApp's $1.9 billion high-end guidance and sees the company raising its fiscal 2027 revenue outlook to at least 10% year-over-year growth, or more than $7.6 billion. The firm's checks showed stronger expectations for primary-storage spending and improved performance for NetApp relative to competitors, according to the report.
The firm's checks show NetApp ranked as a top artificial intelligence "storage vendor," with 30% of respondents naming it their "vendor of choice." The firm said rising AI-related data storage needs, adoption of "all-flash arrays" and demand from AI-native companies should support customer growth and margin improvement.
Oppenheimer has a perform rating on NetApp and added that recent share-price rally already appears to reflect expectations for a "beat and raise" quarter and double-digit fiscal 2027 growth.
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