Shares of NetApp (NTAP) tumbled 5.72% in after-hours trading on Thursday following the data storage company's release of its fourth-quarter results and fiscal year 2026 guidance. Despite reporting better-than-expected Q4 earnings, investors appeared to focus on the company's disappointing revenue forecast.

NetApp reported adjusted earnings per share of $1.93 for the fourth quarter, slightly above the analyst estimate of $1.90. Revenue for the quarter came in at $1.73 billion, also surpassing the expected $1.724 billion. However, the company's outlook for the upcoming fiscal year fell short of market expectations.

For fiscal year 2026, NetApp projects revenue to be between $6.63 billion and $6.88 billion, which is below the analyst consensus of $6.86 billion. The company also provided a softer-than-expected guidance for the first quarter of fiscal 2026, forecasting adjusted EPS of $1.48-$1.58 on revenue of $1.455-$1.605 billion. This outlook falls short of analyst expectations of $1.65 per share on revenue of $1.60 billion.

The weak revenue forecast appears to have overshadowed NetApp's solid Q4 performance, leading to the significant after-hours sell-off. Investors seem concerned about the company's growth prospects in the face of potential economic headwinds and competitive pressures in the data storage market.