NetApp stock falls 9% after hours despite beating Q1 earnings estimates

NetApp, Inc. (NTAP) shares fell approximately 9% in after-hours trading following its first-quarter fiscal 2027 earnings report, despite the company exceeding analyst expectations on both revenue and earnings per share.

NetApp reported quarterly sales of $2.03 billion, a 30% increase year-over-year, surpassing the $1.84 billion projected by analysts. Adjusted earnings per share reached $2.58, significantly higher than the $2.11 Wall Street consensus. Key growth drivers included a 47% annual jump in all-flash array sales and a 30% increase in hybrid cloud segment revenue.

Despite the strong performance and an increased full-year revenue forecast, the stock faced downward pressure in extended trading. The decline coincided with a 25% year-over-year decrease in operating cash flow and a 35% decrease in free cash flow.