Stock

NetApp

NTAP
70
Computer Hardware · Technology
Also trades as: 0K6F.L GBP 2.05 (-4.55%)
Price
$203.80
-10.90 (-5.08%)
Market Cap
$40.03B
Exchange
NASDAQ
Winston Score
70
Winston is happy
A high-quality business with solid fundamentals.
Data as of Oct 18, 2026 · filings through Jul 31, 2026

§How the score breaks down

Quality
Exceptional
28/30
Growth
Strong
15/20
Cash Flow
Exceptional
10/10
Stability
Strong
7/10
Valuation
Strong
7/10
Ownership
Weak
2/15
Dividends
Weak
1/5

70 of 100 counted points = Winston Score 70.

Share count falling — buybacks

−13.1% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 229.0M (2022) → 199.0M (2026)

§Winston Score History

The full picture

NetApp helps businesses store and manage their data. Its main products are storage hardware systems and software that let companies organize huge amounts of information — whether stored in their own data centers or in the cloud. Large enterprises, government agencies, and healthcare organizations are typical customers, and NetApp competes in the enterprise data storage industry alongside companies like Dell and Pure Storage.

NetApp makes money by selling storage hardware, software licenses, and ongoing support subscriptions — the subscription and services side now generates a growing share of revenue. The company operates globally, with strong presence in North America, Europe, and Asia-Pacific, and generates roughly $6–7 billion in annual revenue. Its competitive edge comes from software that works across multiple cloud providers like AWS, Azure, and Google Cloud, making it easier for customers to avoid being locked into one platform. The key growth driver is continued enterprise adoption of hybrid cloud storage, while the main risk is pricing pressure from both cloud providers and hardware competitors.

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Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+29.9% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+64.7% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$991M/ year

→ Flat (-2% vs prior year)

14.3% of revenue

In line with sector average (15%)

Steady R&D investment year-over-year

Insider Activity

0.7%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$3.6B cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

NetApp grew revenue 30% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale
Gross Margin
70.1%
Premium pricing power — 70.1% gross margin
Profit after running costs
Operating Margin
26.7%
Excellent — 26.7% operating margin
Return on the money invested
ROCE
47.2%
Exceptional — 47.2% return on capital

ROIC above 25%. Every dollar invested in the business earns more than 25 cents back per year.

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Growth

Sales growth
Sales YoY
+12.2%
Fast-growing sales (+12.2% YoY)
Profit growth
EPS YoY
+24.4%
Earnings growing fast (+24.4% YoY)

Healthy double-digit earnings growth — what compounders look like.

How steady the profit is
EPS Consistency
6/8 quarters
Earnings grew in most of the last 8 quarters

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Cash Flow

Profit that turns into cash
Cash Conversion
134%
Turns 134% of profit into real cash
Spare cash per sale
FCF Margin
22.3%
Converts sales into free cash efficiently (22.3%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

What it owes vs what it owns
Debt / Equity
1.69
Elevated debt (1.69)
Covers its interest
Interest Cover
17.45x
Comfortably covers interest (17.4x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
28.4x
Growth-priced — P/E 28.4

P/E above the market average. People are paying up for expected growth.

Cheaper or dearer next year
P/E vs Forward
+7.3
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (28.4 → 21.1)

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Dividends

Dividend
Dividend Yield
0.99%
Small dividend — 0.99% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend record
Dividend Growth
+0.0%
Dividend flat
Payout Ratio
29%
no trend
Pays out a modest share of profit and keeps the rest to reinvest. Room to keep paying through a weak year.

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