NetApp, Inc. stock research
FY2023 Q3
NetApp (NTAP) Gross Margin — Quarter Ended Jan 27, 2023
Gross margin improved modestly from the prior quarter, as gross profit declined less steeply than revenue and cost of revenue also decreased. Compared to the same quarter one year earlier, gross margin was substantially lower, reflecting a markedly different relationship between gross profit and revenue.
Gross margin takeaway
Quarter ended Jan 27, 2023 · FY2023 Q3
Gross margin improved modestly from the prior quarter, as gross profit declined less steeply than revenue and cost of revenue also decreased. Compared to the same quarter one year earlier, gross margin was substantially lower, reflecting a markedly different relationship between gross profit and revenue.
- The relative movement of gross profit and revenue drove the sequential gross margin change, with the gross profit decrease being proportionally smaller than the revenue decrease.
- Compared to the immediately preceding quarter, gross margin was slightly higher. Against the same quarter one year earlier, gross margin was markedly lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
65.6%
Gross profit
$1.0B
Revenue
$1.5B
Cost of revenue
$525.0M
Quarter-over-quarter change
n/a
Year-over-year change
-69.2 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jan 27, 2023 | $1.5B | $1.0B | $525.0M | 65.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Jan 28, 2022
-69.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The relative movement of gross profit and revenue drove the sequential gross margin change, with the gross profit decrease being proportionally smaller than the revenue decrease.
Compared to the immediately preceding quarter, gross margin was slightly higher. Against the same quarter one year earlier, gross margin was markedly lower.
Monitor the trajectory of revenue, as it decreased sequentially while gross margin remained relatively stable.