NetApp dividend: cash coverage and yield
NetApp pays $0.52 per share each quarter, or $2.08 a year. FY2026 free cash flow was $1,869 million, and distributions were slightly below it.
How much does NetApp pay its shareholders?
The dividend stays at $2.08 per share in the base and bear cases. That follows the current $0.52 quarterly payment and the unchanged annual dividend of $2.08 in the latest two fiscal years.
| Apr 2026 | Apr 2025 | Apr 2024 | Apr 2023 | Apr 2022 | |
|---|---|---|---|---|---|
| Revenue | 6,925 | 6,572 | 6,268 | 6,362 | 6,318 |
| Revenue growth (calculated) | 5.4% | 4.9% | -1.5% | 0.7% | 10.0% |
| EPS, diluted | 6.35 | 5.67 | 4.63 | 5.79 | 4.09 |
| Dividend per share | 2.08 | 2.08 | 2.00 | 2.00 | 2.00 |
What this means. The 2023 profit looks unusually high because a large tax benefit boosted it, rather than because the business earned that much more.
Is NetApp's dividend covered by its cash?
Free cash flow is the cash left from operations after purchases of property and equipment. Research and development is already included in operating expenses, so the measure reflects cash after funding the people and software that drive the business. NetApp generated substantial free cash flow over the five fiscal years ending in April 2026, and distributions were slightly below it.
FY2026 operating cash flow was $2,067 million, above net income of $1,276 million. After $198 million of capital spending, free cash flow was $1,869 million. Capital spending is not the whole cost of competitiveness because engineering and product development also run through operating expenses.
| Apr 2026 | Apr 2025 | Apr 2024 | Apr 2023 | Apr 2022 | |
|---|---|---|---|---|---|
| Free cash flow | 1,869 | 1,338 | 1,530 | 868 | 985 |
| − Dividends paid | 413 | 424 | 416 | 432 | 446 |
| − Share buybacks | 950 | 1,150 | 900 | 850 | 600 |
| = Free cash flow not paid out | 506 | 214 | |||
| Paid out, % of free cash flow | 72.9% | 117.6% | 86.0% | 147.7% | 106.2% |
What could change NetApp's dividend?
The bull case holds the dividend at $2.08 through the first period, then raises it to $2.16 and $2.24 as cash generation strengthens. The forecast keeps increases modest because free cash flow recently fell to $401 million from $620 million, while dividends and repurchases compete for cash.
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| Earnings | 1,550 (1,450 / 1,700) | 1,690 (1,300 / 1,970) | 1,840 (1,380 / 2,250) |
| Shares (millions) | 194 (196 / 192) | 192 (196 / 189) | 190 (197 / 186) |
| Dividends per share | 2.08 (2.08 / 2.08) | 2.08 (2.08 / 2.16) | 2.08 (2.08 / 2.24) |
| Price to earnings | 20.00 (17.00 / 25.00) | 19.00 (14.00 / 27.00) | 18.00 (12.00 / 28.00) |
What is NetApp's dividend yield at today's price?
Cash flow gives a more practical test of the valuation. FY2026 free cash flow was $1,869 million, compared with $1,338 million in FY2025, but faster collections and other working-capital movements helped. The reported 4.7% free-cash-flow yield therefore deserves comparison with the 3.7% “real” yield after adjustment. Buybacks can also lift EPS without lifting total profit: diluted shares fell from 206 million to 199 million in Q4 FY2026. The dividend yield is 1.0%.