NetApp Stock: Is NTAP Underperforming the Technology Sector?

Valued at a market cap of $20.9 billion, NetApp, Inc. (NTAP) is an intelligent data infrastructure company that provides a range of enterprise software, systems, and services that customers use to transform their data infrastructures. The San Jose, California-based company operates in two segments: Hybrid Cloud and Public Cloud.

Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and NetApp fits this description perfectly. The company combines unified data storage, integrated data, operational, and workload services. It also creates silo-free infrastructure, harnessing observability and AI to enable the industry’s best data management.

Shares of NetApp have dipped 23.1% from its 52-week high of $135.45. NTAP stock has gained 13.3% over the past three months, slightly lagging behind the Technology Select Sector SPDR Fund’s (XLK) 13.6% increase.

In the longer term, NetApp’s stock has dropped 10.2% on a YTD basis, underperforming XLK’s 4.5% rise. Additionally, over the past 52 weeks, shares of NTAP have plunged 17.4%, compared to XLK's 6.8% return.

The stock has been trading below its 50-day and 200-day moving averages since March. However, the stock has risen above its 50-day moving average since early May.

Despite reporting strong Q4 2025 results on May 29, NetApp’s stock fell marginally the next day as investor sentiment was dampened by the company’s fiscal 2026 outlook, which fell short of expectations. NetApp expects revenue to be in the range of $6.63 billion to $6.88 billion, with adjusted EPS projected between $7.60 and $7.90. 

However, the company reported quarterly revenue of $1.7 billion, a 3.8% year-over-year increase, driven by growth across both segments and in line with Street forecasts. Adjusted EPS came in at $1.93, marking a 7.2% increase from the year-ago quarter and beating the consensus estimates by 1.6%.

Compared to its peer, HP Inc. (HPQ) has underperformed NTAP stock. Shares of HPQ have decreased 24.9% on a YTD basis and 31% over the past 52 weeks.

Despite NTAP’s underperformance relative to the sector, analysts are moderately optimistic about its stock’s prospects. NTAP has a consensus rating of “Moderate Buy” from the 19 analysts covering the stock, and as of writing, it is trading below the mean price target of $114.07.