NetApp shares fell 8.1% in pre-market trading after the data storage provider posted mixed results for its fiscal first quarter, with revenue and earnings exceeding expectations but guidance signaling a significant slowdown ahead.
The company reported revenue of $2.03 billion for the quarter ended July 31, up 26% year-over-year and surpassing the consensus estimate of approximately $1.84 billion. Non-GAAP earnings per share reached $2.58, also beating expectations near $2.12. Despite these strong headline figures, NetApp’s stock slid to $166.11 in pre-market trading, down from its prior close of $180.77 and well below its 52-week high of $209.06.
Free cash flow declined 35% year-over-year to $401 million, a notable drag on investor sentiment. The company also closed about 350 deals in the quarter, a decrease from roughly 500 in the prior period, though average deal sizes grew. The broader market showed little movement, with the S&P 500 essentially flat and the Nasdaq slightly negative.
NetApp’s full-year guidance suggests a sharp deceleration in growth during the second half of fiscal 2027. Revenue growth is expected to compress from roughly 26% in the first quarter and 23% in the second quarter to approximately 9–10% in the latter half of the year. Analysts at Evercore ISI maintained an "In Line" rating on the stock, acknowledging the record first-quarter performance but flagging the implied slowdown as a key concern for shares.
The company’s results follow its inclusion among ProPicks AI’s past winners, alongside notable gains in Super Micro Computer (+185%) and AppLovin (+157%).
