NetApp stock drops 8% on slowing growth outlook despite Q1 beat

NetApp shares fell 8.1% in premarket trading after its fiscal Q1 2027 report triggered a sharp selloff, despite beating revenue and earnings estimates. Investors focused on a 35% drop in free cash flow to $401 million and a guidance implying revenue growth slowing from 26% in Q1 to roughly 9-10% in the second half of the fiscal year. The company closed about 350 AI and data lake deals in Q1, down from 500 the prior quarter, while Evercore ISI reiterated its In Line rating, citing the implied slowdown as a key pressure point.