NetApp, Inc. stock research
FY2024 Q3
NetApp (NTAP) Gross Margin — Quarter Ended Jan 26, 2024
Revenue was stable compared to the prior quarter, while gross profit increased and cost of revenue was slightly higher, resulting in an improved gross margin. Compared to the same quarter one year earlier, revenue was higher, gross profit was higher, cost of revenue was lower, and gross margin improved.
Gross margin takeaway
Quarter ended Jan 26, 2024 · FY2024 Q3
Revenue was stable compared to the prior quarter, while gross profit increased and cost of revenue was slightly higher, resulting in an improved gross margin. Compared to the same quarter one year earlier, revenue was higher, gross profit was higher, cost of revenue was lower, and gross margin improved.
- The strongest observable margin driver is the lower cost of revenue relative to the year-ago quarter, which supported a higher gross profit and gross margin.
- Gross margin improved sequentially and year-over-year, with the year-over-year improvement being more pronounced. Revenue was stable sequentially and higher year-over-year.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
71.7%
Gross profit
$1.2B
Revenue
$1.6B
Cost of revenue
$455.0M
Quarter-over-quarter change
+0.6 pts
Year-over-year change
+6.1 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 |
|---|---|---|---|---|
| Apr 28, 2023 | $1.6B | $1.1B | $506.0M | 68.0% |
| Jul 28, 2023 | $1.4B | $996.0M | $436.0M | 69.6% |
| Oct 27, 2023 | $1.6B | $1.1B | $452.0M | 71.1% |
| Jan 26, 2024 | $1.6B | $1.2B | $455.0M | 71.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Oct 27, 2023
+0.6 pts
Year-over-year change
Jan 27, 2023
+6.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the lower cost of revenue relative to the year-ago quarter, which supported a higher gross profit and gross margin.
Gross margin improved sequentially and year-over-year, with the year-over-year improvement being more pronounced. Revenue was stable sequentially and higher year-over-year.
Monitor the trend in cost of revenue, as it decreased year-over-year but increased slightly from the prior quarter.