Stock Track | NetApp Plunges 13.72% After Q3 Revenue Miss and Lowered Outlook

Stock Track
02-28

NetApp Inc. (NTAP) saw its stock plummet 13.72% in after-hours trading on Thursday, following the company's fiscal Q3 2025 earnings release.

The data storage firm reported adjusted earnings per share of $1.91 for the quarter, in line with analyst estimates. However, revenue came in at $1.64 billion, missing expectations of $1.69 billion.

While NetApp's Q3 earnings matched forecasts, the revenue shortfall appeared to spook investors and analysts. More concerning was the company's decision to lower its fiscal 2025 revenue and earnings guidance, citing diminishing demand for its data storage products and services.

NetApp now expects fiscal 2025 revenue between $6.49 billion and $6.64 billion, down from its prior range of $6.54 billion to $6.74 billion. The company also cut its full-year adjusted EPS outlook to $7.17 - $7.27, versus previous guidance of $7.20 - $7.40.

The weaker-than-anticipated Q3 top-line figure and reduced full-year outlook reflect softening demand conditions for NetApp's core data storage offerings. Analysts view these results as a warning sign for the company's growth trajectory in the months ahead.

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