NetApp Inc. (NTAP) stock experienced a significant pre-market plunge of 13.37% on Friday morning, following the company's fiscal Q3 2025 earnings release. The data storage firm's revenue for the quarter missed analyst expectations, and the company lowered its full-year revenue and earnings guidance, citing diminishing demand for its products and services.

While NetApp's adjusted earnings per share of $1.91 for Q3 matched forecasts, its revenue of $1.64 billion fell short of the expected $1.69 billion. This revenue shortfall, coupled with the reduced full-year outlook, raised concerns among investors and analysts about the company's growth trajectory in the coming months.

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. According to analysts, these weaker projections reflect softening demand conditions for NetApp's core data storage offerings.