Is NetApp (NTAP) Falling Behind in the Cloud Data Race?

NetApp Inc. (NASDAQ:NTAP) is one of the worst-performing data center stocks in 2025. While its stock has not declined much (+3.3%), it has also not been able to keep pace with the enthusiasm in the broader data center industry. The company has been facing competition from pure-play cloud providers. However, its hybrid model continues to appeal to enterprises seeking flexibility and cost savings.

Is NetApp (NTAP) Falling Behind in the Cloud Data Race?

Analysts’ views on NetApp currently lean towards the cautious side, with almost two-thirds having a Neutral rating. However, on September 16, TD Cowen analyst John Blackledge reiterated a Buy rating on the stock with an unchanged price target of $130. This rating was issued shortly after the company presented at the Goldman Sachs Communicopia + Technology Conference on September 9.

At the conference, NetApp shared its early results for fiscal 2026. CFO Wissam Jabry said the company is seeing steady growth in all-flash storage, cloud services, and AI. Still, demand in the U.S. public sector and parts of EMEA remains weak.

Management kept its growth forecast at 2% for the next quarter and 3% for the year, with product margins expected in the mid-to-high 50% range. The company is adding senior hires in North America to lift sales and continues to invest in R&D to strengthen its data and cloud offerings.

NetApp Inc. (NASDAQ:NTAP) provides hybrid cloud and data storage solutions for enterprise clients. Its products range from on-premises hardware to cloud software and data management tools.

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Disclosure: None. This article is originally published at Insider Monkey.