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.

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.