NetApp Set to Report Q1 Earnings: Key Performance Drivers to Watch

NetApp, Inc. (NTAP) is slated to release first-quarter fiscal 2026 earnings on Aug. 27, after the closing bell.The company expects non-GAAP earnings per share to be between $1.48 and $1.58 for the quarter. The Zacks Consensus Estimate is currently pegged at $1.54 per share, representing a 1.3% fall from the year-ago level.Net sales are anticipated to be in the range of $1.455 billion to $1.605 billion. The Zacks Consensus Estimate is pegged at $1.54 billion, implying a 0.1% slide from the prior-year reported number.NTAP beat estimates in three of the trailing four quarters, while matching once, delivering an average earnings surprise of 3.2%.Key Factors to Note for NTAP’s Q1 EarningsIncreasing momentum across the all-flash portfolio, especially in Keystone adoption and growth in first-party and marketplace cloud storage services, is likely to have supported NetApp’s performance in the fiscal first quarter. The company remains committed to capitalizing on enterprise AI and advancing its all-flash and cloud portfolios, with these segments expected to drive sustained performance going forward.NetApp is well-positioned to advance growth in key markets, especially in flash and cloud storage. The Flash AFF Series and Block ASA Series are designed for performance across various price points. The company has significantly increased its market share—almost 3 percentage points in all-flash and 1 point in block storage in 2024. Growth in all-flash systems and public cloud services, driven by AI market expansion, now contributes to more than two-thirds of revenue, up from less than half five years ago. NetApp expects these trends, supported by targeted investments and strong execution, to lead to record performance in fiscal 2026 and beyond.NetApp’s all-flash array annualized revenue run rate rose 14% year over year in the fiscal fourth quarter to a record $4.1 billion. All-flash accounted for roughly two-thirds of the Hybrid Cloud segment revenue, with 44% of systems under active support contracts now all-flash. Our estimate for Hybrid Cloud’s fiscal first-quarter revenues is pegged at $1.34 billion, indicating a fall of 1.3% from the year-ago level.NetApp, Inc. Price and EPS Surprise NetApp, Inc. price-eps-surprise | NetApp, Inc. QuoteThe accelerating enterprise AI market is prompting customers to modernize data infrastructure, advance cloud transformations and strengthen cyber resiliency. NetApp is engaged in negotiations for significant AI and data modernization deals with several large enterprises, expected to close later this year, boosting the long-term growth outlook.In the last reported quarter, NetApp’s Public Cloud segment grew 8% to $164 million, with first-party and marketplace storage services up 44% and comprising about 75% of revenues. Excluding the Spot divestiture, growth was 22% year over year. Strong hyperscaler partnerships with Amazon and Microsoft position NetApp as a key player in cloud infrastructure as enterprises accelerate cloud migration. We expect the Total Public Cloud segment revenue to be $173 million, up 8.9% year over year in the fiscal first quarter.However, the global macroeconomic environment remains uncertain, marked by slowing growth, persistent inflation pressures and elevated volatility. NetApp anticipates increased customer spending caution, along with continued challenges in the U.S. Public Sector and EMEA. These factors are likely to weigh on its outlook.What Our Model Says About NTAPOur proven model does not predict an earnings beat for NTAP this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. This is not the case here.NTAP has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Stocks With Favorable CombinationHere are a few companies worth considering, as our model indicates that they possess the right combination of factors to exceed earnings expectations in their upcoming releases:BuildABear Workshop (BBW) currently has an Earnings ESP of +11.00% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for revenues and earnings is pegged at $114.7 million and 67 cents per share, respectively. BuildABear Workshop is slated to report second-quarter 2025 results on Aug. 28. Abercrombie & Fitch (ANF) has an Earnings ESP of +2.62% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for revenues and earnings is pegged at $1.2 billion and $2.27 per share, respectively. Abercrombie & Fitch is slated to report second-quarter fiscal 2026 results on Aug. 27.Bath & Body Works (BBWI) currently has an Earnings ESP of +3.26% and a Zacks Rank #3.The Zacks Consensus Estimate for revenues and earnings is pegged at $1.55 billion and 37 cents per share, respectively. Bath & Body Works is scheduled to report second-quarter fiscal 2026 results on Aug. 28.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Abercrombie & Fitch Company (ANF): Free Stock Analysis Report NetApp, Inc. (NTAP): Free Stock Analysis Report Build-A-Bear Workshop, Inc. (BBW): Free Stock Analysis Report Bath & Body Works, Inc. (BBWI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks