On September 3, NetApp fell 5.96% in after-hours trading, trading at $169.58 per share, with turnover of approximately $30.38 million. The decline came despite the company issuing fiscal 2027 full-year revenue guidance that significantly exceeded Wall Street expectations.

NetApp reported its fiscal 2027 first-quarter results after the close on September 2 and guided full-year revenue to a range of $7.975 billion to $8.225 billion, well above the FactSet consensus estimate of $7.54 billion. The prior quarter had already shown solid momentum, with revenue of $1.948 billion, up 12% year-over-year, and adjusted EPS of $2.43, beating estimates by a wide margin.

Despite the strong guidance, the stock came under selling pressure. Morgan Stanley had previously flagged that NetApp faced one of the toughest earnings setups among hardware names due to elevated buyside expectations and stretched valuations heading into the print. With shares having surged roughly 27% following the prior quarter's results and multiple analysts raising price targets — BofA to $206, Evercore ISI to $210, Goldman Sachs to $210 — the after-hours pullback reflects classic profit-taking after an extended rally, even as the fundamental outlook remains constructive.

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