NetApp (NASDAQ: $NTAP) Stock: Q3 Beat, Shares Slide

NetApp Inc. (NASDAQ: NTAP) fell over 4% in early trading despite posting Q3 CY2025 results that exceeded expectations. Shares opened at $108.92 as investors focused on softer forward revenue guidance rather than the quarter’s operational strength. While the company delivered solid margin performance and raised full-year EPS guidance, growth signals remain modest, creating a mixed reaction.

Q3 revenue grew 2.8% year over year to $1.71 billion, beating estimates by 1.1%. Adjusted EPS reached $2.05, up from $1.87 last year and an 8.8% beat against consensus. Management reaffirmed full-year revenue expectations of $6.75 billion and lifted full-year EPS guidance to $7.90 at the midpoint. Operating margin expanded to 23.4%, improving 2.6 percentage points and reflecting tight cost controls. Free cash flow margin held steady at 4.6%, reinforcing stability.

NetApp’s previous Q2 GAAP results also showed progress. GAAP EPS rose to $1.51 from $1.42, while revenue climbed 2.8% to $1.705 billion. For the upcoming quarter, the company guided revenue to $1.615–$1.765 billion and EPS to $2.01–$2.11, slightly below market expectations. Full-year projections call for revenue between $6.625 and $6.875 billion and EPS between $7.75 and $8.05.

Long-term trends highlight consistency rather than acceleration. NetApp delivered a 3.7% revenue CAGR over five years and 4.3% over the past two years. Analysts expect 4.4% growth next year, signaling stability but limited upside. However, profitability remains a clear strength. The company averaged 19.3% operating margin over five years and continues to improve efficiency.

EPS growth remains robust, with a five-year CAGR of 12.5% and two-year growth of 14.9%. NetApp’s disciplined execution supports strong earnings even as revenue growth stays modest.

Technical Outlook:
NTAP is testing key support at $108. A breakdown and close below this zone could open room toward the $84 ascending trendline. Resistance sits at $135, where bullish momentum must reclaim control.