NetApp stock fell late Thursday after the enterprise data storage company reported a sales and earnings forecast below expectations. The company's outlook overshadowed its better-than-expected fiscal fourth-quarter results.
San Jose, Calif.-based NetApp said it earned an adjusted $1.93 per share on sales of $1.73 billion for the April 25-ended quarter. Analysts polled by FactSet were forecasting adjusted earnings of $1.90 per share on sales of $1.72 billion.
Earnings increased 7% year over year. Sales rose 4%.
Meanwhile, NetApp said it's expecting sales of $1.53 billion for its July-ending fiscal Q1, based on the midpoint of its given range. Analysts were forecasting $1.6 billion in sales for the period.
NetApp also projected adjusted earnings per share of $1.53 for the current quarter, compared with expectations for $1.65, per FactSet.
On the stock market today, NetApp stock is down more than 5% at 93.50 in recent after-hours action.
NetApp Stock Trading Lower In 2025
Founded in 1992, NetApp offers a storage hardware and software platform for enterprises.
Prior to posting its results, NetApp stock fell 0.5% in regular trading.
Rival Pure Storage fell 2.7% Thursday after reporting earnings late Wednesday. Despite strong results, the company's stock fell on the news that Pure Storage's CFO is stepping down.
NetApp stock has fallen 14% this year, as of Thursday's close. Some analysts contend that tariffs and other concerns about the broader economy could cause enterprises to pull back on data storage spending. BofA Securities analyst Wamsi Mohan is neutral on NetApp stock, writing to clients last week that "increased competition from Dell with aggressive pricing can likely limit upside in the storage industry."
Coming into the report, NetApp stock had an IBD Composite Rating of 56 out of 99, according to IBD Stock Checkup. The score combines five separate proprietary ratings into one rating. The best growth stocks have a Composite Rating of 90 or better.
