Argus Research Raises NetApp (NASDAQ: NTAP) Price Target Amid Strong Q1 2027 Earnings and AI Demand

• Argus Research raised its price target for NetApp (NASDAQ: NTAP) to $225.00, citing a potential 13.5% upside from its current stock price.
• NetApp reported strong fiscal Q1 2027 results, with revenues up 29.9% to over $2 billion and non-GAAP EPS climbing 66.5% to $2.58, driven by demand for AI-related storage.
• Management raised full-year 2027 guidance, projecting revenue between $7.975 billion and $8.225 billion and EPS between $9.73 and $10.03, despite potential future challenges.

On September 11, 2026, Argus Research raises its price target for NetApp (NASDAQ: NTAP) to $225.00 from $200.00. NetApp is a company that provides cloud data services and data management for businesses, competing with firms like Dell EMC and Pure Storage. At the time of the update, NetApp's stock price is $198.18, indicating a potential upside of 13.5%.

This positive outlook is supported by NetApp's strong performance. The company reports impressive fiscal first-quarter 2027 results, with revenues increasing 29.9% year-over-year to over $2 billion. Non-GAAP earnings per share (EPS), a measure of profitability, also sees a significant climb of 66.5% to $2.58, surpassing analyst expectations.

The company's growth is driven by high demand for AI-related storage and broader modernization efforts. All-flash revenues, which come from its faster storage products, jump 46.6% to over $1.3 billion. In addition, Public Cloud revenues rise 28% to $206 million, showing strength in its cloud-based services.

Following these results, NetApp's management raises its full-year 2027 guidance. The company now expects revenue between $7.975 billion and $8.225 billion and an EPS between $9.73 and $10.03. This reflects strong confidence in continued growth, as highlighted by Zacks Investment Research in an analyst blog by Swayta Shah.

Despite the stock gaining 14.8% over the past three months, the company faces future tests. As detailed by Zacks Investment Research, potential challenges include pressure on gross margins from its product mix and tougher customer purchasing comparisons later in the year, which could affect future performance.