Cluenex
Log inStart free
All stocks · Technology · Technology Hardware, Storage & Peripherals

NetApp NTAP

NetApp scores good on business quality (6.3 of 10). Here is why, in plain words, and what our sealed record shows.

Last price$237.15Oct 10, 2026
Business qualityGood
Next earningsDec 1, 2026
Insiders, 90 daysSelling

Why it matters

  1. What NetApp does

    NetApp sells enterprise data storage systems and cloud data services to corporate IT departments, generating revenue through hardware, software subscriptions, and maintenance contracts. The business is pushing deeper into hybrid cloud storage management to capture sticky enterprise workloads.

  2. What it does best

    NetApp dominates enterprise data storage efficiency, posting a gross margin of 70.6% that easily outpaces hardware peers like Dell at 19.8% and HPE at 36.8%. This elite pricing power stems from proprietary ONTAP data management software embedded deeply across corporate data centers.

  3. The main risk

    A stagnant growth profile limits upside as revenue growth sits in the bottom quartile of its sector at 23rd percentile rank. If enterprise IT spending rotates away from legacy hardware infrastructure toward native hyperscaler storage, top-line stagnation will deepen.

Quality, check by check

Scored against its own industry, from company filings.

ProfitabilityStrong

An operating margin of 26.0% and a free cash flow margin of 55% place profitability in the top decile of its sector. This high conversion efficiency proves the business scales exceptionally well as software revenue mixes higher.

MoatStrong

Enterprise switching costs form a wide moat protecting storage software locks, backed by an operating margin sitting in the top quartile of its sector at the 74th percentile. Migrating petabytes of enterprise data away from its OS platform creates heavy friction.

GrowthSlow

Revenue grew at 5.4% to reach $7.4B, marking a steady recovery from prior years where growth stalled near $6.3B. The pace remains modest compared to tech sector averages, but it improves upon historical stagnation.

Financial healthFair

NetApp holds $3.6B in cash with a net debt position of -$1.1B, supported by interest coverage of 18x where debt costs are manageable. Free cash flow reached $1.7B, showing a stable and strengthening cash generation profile overall.

Insiders

Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.

3 sold $3.5M outside pre-planned sales.

Our sealed record on NTAP

Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.

The first sealed verdicts appear here on Oct 11, 2026.

Questions

Is NTAP a good business?

NetApp scores good on the Cluenex quality check (6.3 of 10), measured against its own industry. Profitability is strong, moat strong, growth slow and financial health fair.

Are insiders buying NTAP?

In the last 90 days of SEC Form 4 filings: 3 sold $3.5M outside pre-planned sales.

When does NTAP report earnings?

Dec 1, 2026.

For members

See NTAP today

  • Today's verdict on NTAP, and why
  • Fair value with cautious, base and optimistic cases
  • The exact price that would change the verdict
  • Which stocks each signal names, the night it fires
Open in Cluenex Free to start. First month of Core free.

Cite this page: Cluenex, “NetApp (NTAP)”, https://cluenex.com/stocks/ntap/, data as of Oct 10, 2026.