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Research Alert: Ntap Q4: Margin Resilience Continues, While Fy 27 Guide Beats The Street

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CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

NetApp delivered strong Q4 FY26 results with revenue of $1.95B (+12% Y/Y) beating consensus of ~$1.87B and record EPS of $2.43 (+11% Y/Y) significantly exceeding expectations of $2.27. Results were driven by accelerating all-flash array growth of 18% Y/Y to $1.22B and Public Cloud sales up 11% to $182M, with billings of $2.163B marking the tenth consecutive quarter of growth. We view the broad-based strength across both Hybrid Cloud (+13%) and Public Cloud segments as validation of NetApp's strategic positioning in data infrastructure markets. Management provided FY27 guidance well above Street expectations with revenue midpoint of $7.45B (+8% Y/Y) vs consensus $7.19B and EPS of ~$8.85 (+9%) vs $8.50. We believe impressive margin expansion with operating margin reaching 32.0% (+340 bps Y/Y) and record free cash flow of $900M (+41% Y/Y) demonstrate strong operational execution. However, we expect memory cost pressures in H2 may create headwinds despite product gross margin improvement to 56.1%.

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