{"id":65251,"date":"2026-06-07T14:19:16","date_gmt":"2026-06-07T14:19:16","guid":{"rendered":"https:\/\/www.europesays.com\/ai\/65251\/"},"modified":"2026-06-07T14:19:16","modified_gmt":"2026-06-07T14:19:16","slug":"weighing-netapp-ntap-valuation-after-ai-driven-earnings-beat-and-new-cisco-and-splunk-deals","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ai\/65251\/","title":{"rendered":"Weighing NetApp (NTAP) Valuation After AI Driven Earnings Beat And New Cisco And Splunk Deals"},"content":{"rendered":"\n

Get insights on thousands of stocks<\/a> from the global community of over 7 million individual investors at Simply Wall St.<\/p>\n

NetApp (NTAP) is back in focus after reporting quarterly results that topped analyst expectations, supported by demand for AI focused data infrastructure and cloud solutions, as well as fresh collaborations with Cisco and Splunk.<\/p>\n

See our latest analysis for NetApp.<\/a><\/p>\n

The stock has cooled in the last week, with a 1 day share price return of 6.61% down and a 7 day return of 4.16% down, following a very strong 30 day share price return of 41.56% and a 1 year total shareholder return of 60.26%, which reflects recent momentum after the latest earnings beat and new Cisco and Splunk collaborations.<\/p>\n

If NetApp\u2019s AI and data infrastructure story has your attention, it can be useful to see what else is moving in adjacent areas through the 48 AI infrastructure stocks<\/a><\/p>\n

With NetApp trading close to both analyst targets and one intrinsic value estimate, and having rallied strongly over the past year, you have to ask yourself whether there is still mispricing here or if the market is already factoring in future growth.<\/p>\n

Most Popular Narrative: 50% Undervalued <\/p>\n

NetApp\u2019s most followed narrative puts fair value at about $167.93 per share compared with a last close of $167.04. This keeps the focus firmly on whether its AI and hybrid cloud engine can justify that number.<\/p>\n

Accelerating adoption of AI and analytics workloads across industries is driving demand for unified, high-performance, and scalable data infrastructure, with NetApp securing over 125 AI wins in Q1 (more than doubling year-over-year); this trend is expected to drive revenue and earnings growth as AI deployments move from proofs-of-concept to large-scale production.<\/p>\n

Read the complete narrative.<\/a><\/p>\n

Curious how that fair value ties together AI wins, subscription storage, and margin assumptions. The narrative leans on a carefully staged glide path for revenue, profitability, and future P\/E multiples without assuming breakneck growth.<\/p>\n

Result: Fair Value of $167.93 (UNDERVALUED)<\/p>\n

Have a read of the narrative in full and understand what’s behind the forecasts.<\/a><\/p>\n

However, you still need to weigh risks such as pressure on gross margins from higher memory and component costs, as well as intensifying competition in cloud and on premises storage.<\/p>\n

Wall Street’s queuing for one rocket. While SpaceX counts down to its IPO, other companies tied to the new space race are already in orbit. \u2192 20 Compelling Space Companies<\/a> watchlist \u00b7 Global Space Race Investing Ideas<\/a> screener \u00b7 Scan the sector by valuation on Rocket Lab’s valuation page<\/a>.<\/p>\n

Another View: What The P\/E Ratio Is Saying <\/p>\n

The DCF work and analyst fair value suggest NetApp is about 2.1% below one fair value estimate, yet its P\/E of 25.6x sits slightly above the global tech average of 24.9x, and below a fair ratio of 31.4x and peer average of 45.1x. That mix of modest premium and wide headroom raises a simple question: is the stock pricing in too much, or not quite enough, of the AI and hybrid cloud story yet?<\/p>\n

See what the numbers say about this price \u2014 find out in our valuation breakdown.<\/a><\/p>\n

\"NasdaqGS:NTAP<\/a> NasdaqGS:NTAP P\/E Ratio as at Jun 2026 Next Steps <\/p>\n

With sentiment split between upside potential and real concerns, it makes sense to move quickly and test the data for yourself, then weigh both sides through the 3 key rewards and 1 important warning sign<\/a>.<\/p>\n

Looking for more investment ideas? <\/p>\n

If NetApp has sharpened your appetite, do not stop here. The same tools can help you spot other opportunities that could reshape your portfolio.<\/p>\n

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.<\/p>\n

Companies discussed in this article include NTAP<\/a>.<\/p>\n

Have feedback on this article? Concerned about the content? Get in touch<\/a> with us directly. Alternatively, email editorial-team@simplywallst.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply…\n","protected":false},"author":2,"featured_media":24944,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[24,25,329,14448,12020,3305,2305,12049,10883,4871],"class_list":["post-65251","post","type-post","status-publish","format-standard","has-post-thumbnail","category-ai","tag-ai","tag-artificial-intelligence","tag-cisco","tag-cloud-solutions","tag-data-infrastructure","tag-fair-value","tag-global-community","tag-intrinsic-value","tag-netapp","tag-total-shareholder-return"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts\/65251","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/comments?post=65251"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts\/65251\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/media\/24944"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/media?parent=65251"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/categories?post=65251"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/tags?post=65251"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}