Shares of NetApp (NTAP) plummeted 5.72% in after-hours trading on Thursday following the company's fourth-quarter earnings report and disappointing forward guidance. While the data storage company's Q4 results were largely in line with expectations, investors appeared to focus on the weak revenue forecast for the upcoming fiscal year.

NetApp reported Q4 adjusted earnings per share of $1.93, slightly above the IBES estimate of $1.90. Revenue for the quarter came in at $1.73 billion, marginally higher than the expected $1.724 billion. However, the company's outlook for fiscal year 2026 fell short of analyst expectations, with revenue projected between $6.63 billion and $6.88 billion, compared to the consensus estimate of $6.86 billion.

Adding to investor concerns, NetApp's guidance for the first quarter of fiscal 2026 also missed the mark. The company expects Q1 adjusted EPS of $1.48-$1.58 on revenue of $1.455-$1.605 billion, whereas analysts were looking for EPS of $1.65 on revenue of $1.60 billion. This conservative outlook suggests potential challenges in the near term, likely contributing to the sharp decline in the stock price during extended trading.