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    NetApp (NTAP) Could Be 5% Undervalued Following Earnings And AI Storage Optimism

    Simply Wall St·07/26/2026 03:28:04
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    NetApp (NTAP) is back in focus after filing a preliminary proxy statement on July 16, 2026, urging shareholders to vote against a proposal to permit certain corporate actions by written consent.

    See our latest analysis for NetApp.

    Against this governance backdrop, NetApp’s recent share price performance has been strong, with a 90 day share price return of 54.68% and a 1 year total shareholder return of 62.64%, suggesting momentum has been building as investors focus on upcoming earnings and its role in AI related storage and cloud partnerships.

    If NetApp’s recent run has you thinking about where else growth stories could emerge around digital infrastructure, it may be worth scanning 55 AI infrastructure stocks

    NetApp’s business has clear strengths in data infrastructure and AI-linked storage, but after a share price that has moved this far, the more useful question is whether the stock still lines up with a reasonable valuation.

    Most Popular Narrative: 4.5% Undervalued

    With NetApp last closing at $167.74 against a narrative fair value of $175.69, the current price sits slightly below what this widely followed view considers reasonable, which is drawing attention to what exactly is baked into those assumptions.

    Substantial growth in Keystone Storage as a Service (up ~80% year over year) and increased deferred revenue (+9% year over year) indicate growing preference for subscription based and as a service storage, supporting higher revenue visibility and margin expansion as mix continues to shift toward high value services.

    Read the complete narrative.

    Want to see why this narrative thinks NetApp can support that higher fair value? The story leans heavily on steady revenue gains, fatter margins, and a future earnings multiple usually reserved for firmly established platform companies. Curious which specific growth and profitability targets have to land for this pricing to hold up?

    Result: Fair Value of $175.69 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, NetApp’s story can shift quickly if higher component and memory costs weigh on margins, or if reliance on hyperscaler partners compresses future profitability.

    Find out about the key risks to this NetApp narrative.

    Next Steps

    With sentiment on NetApp so mixed, it makes sense to move quickly, review the underlying data yourself, and weigh both sides before deciding. To see both the potential upside and the key concerns in one place, start with the 3 key rewards and 1 important warning sign.

    Looking for more investment ideas beyond NetApp?

    If NetApp has sharpened your focus on quality, do not stop here. Broaden your watchlist with other stocks that line up with the kind of portfolio you want to build.

    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.