NetApp stock soars 33% after strong revenue forecast and $1B buyback plan
NetApp’s stock surged by roughly a third on Friday, closing near $189. The sharp rise followed strong revenue forecasts and a new share buyback plan. Investors reacted positively despite mixed earnings results for the latest quarter. The company’s fourth-quarter revenue reached $1.95 billion, a 12.5% increase from the same period last year. This figure beat analyst expectations of $1.87 billion. However, earnings per share came in at $2.03, below the $2.27 consensus estimate.
For the first quarter of fiscal 2027, NetApp projected revenue between $1.75 billion and $1.90 billion. This range sits above the $1.67 billion forecast by Wall Street. The full-year outlook was similarly optimistic, with revenue guidance of $7.33 billion to $7.58 billion—higher than the $7.20 billion estimate. NetApp also announced plans to repurchase $1 billion worth of its own shares. The company maintained its regular quarterly dividend, signalling confidence in its financial position. Analysts at Northland Securities responded by raising their price target to $171, keeping an 'outperform' rating on the stock. Looking ahead, NetApp expects earnings per share for fiscal 2027 to land between $8.70 and $9.00. This projection exceeds the $8.53 consensus among analysts.
The stock’s 33% jump on Friday pushed its value past the previous record set in October 2000. NetApp’s revenue growth and shareholder-friendly moves have strengthened investor confidence. The company’s guidance for the coming year remains above market expectations.
