Is NetApp (NTAP) Expensive On JetStream Deal And Earnings Hopes?

NetApp (NTAP) is back in focus after its recent acquisition of JetStream Software and ahead of its upcoming fiscal Q1 2027 earnings release, which is scheduled for after the market close on September 2, 2026.

See our latest analysis for NetApp.

NetApp’s recent acquisition of JetStream Software and the approaching Q1 2027 earnings update come on the back of strong momentum, with a 30 day share price return of 17.53% and a 1 year total shareholder return of 87.37%. This suggests investors have been rewarding the stock over both the short and long term.

If NetApp’s run has you thinking about where else growth in data and infrastructure might show up next, it could be worth checking out 57 AI infrastructure stocks

The jump in NetApp’s share price could point to growing confidence in its data infrastructure business, or it could reflect hotter sentiment around anything tied to AI and cloud. How does the current valuation stack up against the fundamentals?

Most Popular Narrative: 13% Overvalued

The most followed NetApp narrative puts fair value at $175.69 compared with the last close at $198.47, so it sees the current price as ahead of those assumptions.

Accelerating adoption of AI and analytics workloads across industries is driving demand for unified, high-performance, and scalable data infrastructure, with NetApp securing over 125 AI wins in Q1 (more than doubling year-over-year); this trend is expected to drive revenue and earnings growth as AI deployments move from proofs-of-concept to large-scale production.

Read the complete narrative.

Want to understand why this AI storage demand still supports a higher fair value than many expect? The narrative leans on steady revenue growth, expanding margins, and a future earnings multiple that assumes NetApp keeps converting today’s data infrastructure wins into stronger long term profitability.

Result: Fair Value of $175.69 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, NetApp’s story could be tested if higher component costs squeeze margins, or if weakness in EMEA and the U.S. public sector persists.

Find out about the key risks to this NetApp narrative.

Another View: NetApp Through A Cash Flow Lens

The first narrative frames NetApp as about 13% overvalued using analyst assumptions. Yet our DCF model points to a fair value of $199.88 against a share price of $198.47, which is a small 0.7% discount. That is a very tight range. Which framework do you trust more for your own view on NetApp?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out NetApp for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 49 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

NetApp’s story so far mixes enthusiasm around AI infrastructure with some clear questions on risks and rewards, so move quickly and test the data against your own expectations. To see both sides in one place and decide where you stand, review the 3 key rewards and 1 important warning sign

Looking for more investment ideas beyond NetApp?

If NetApp has sharpened your interest in where capital could work harder next, do not stop here. Use focused screens to spot other opportunities that fit your style.

• Target potential mispricing by reviewing companies trading on attractive metrics and solid fundamentals through the 49 high quality undervalued stocks.
• Strengthen your income stream by scanning for resilient companies offering higher yields with the 8 dividend fortresses.
• Prioritise resilience by focusing on companies with robust finances using the solid balance sheet and fundamentals stocks screener (50 results).

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com