NetApp Inc. (NASDAQ:NTAP) has been identified among the worst-performing data center stocks in 2025. Although the company’s stock has slightly increased by 3.3%, it has still fallen short of the broader enthusiasm sweeping through the data center sector. A significant factor contributing to this stagnation is the fierce competition from dedicated cloud service providers. Nevertheless, NetApp’s hybrid model continues to resonate with enterprises that value flexibility and cost efficiency.
Analysts currently maintain a cautious outlook for NetApp, with nearly two-thirds bestowing a Neutral rating on the stock. However, TD Cowen analyst John Blackledge recently announced a Buy rating, keeping the price target steady at $130. This optimistic perspective came shortly after NetApp’s presentation at the Goldman Sachs Communicopia + Technology Conference on September 9.
During that conference, NetApp provided insights into its early fiscal 2026 results. CFO Wissam Jabry indicated that the organization is observing consistent growth in sectors like all-flash storage, cloud services, and AI. However, it’s important to note that demand in the U.S. public sector alongside certain parts of EMEA has been underwhelming.
Company leadership reiterated a growth forecast of 2% for the upcoming quarter and 3% for the year, with anticipated product margins ranging in the mid-to-high 50% bracket. To bolster sales, NetApp is recruiting senior personnel in North America and continues its commitment to research and development to enhance its data and cloud capabilities.
NetApp Inc. (NASDAQ:NTAP) offers a range of hybrid cloud and data storage solutions tailored for enterprise clients, including on-premises hardware, cloud software, and data management tools.
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Disclosure: None. This article is originally published at Insider Monkey.
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