NetApp, Inc. stock research
FY2025 Q1
NetApp (NTAP) Gross Margin — Quarter Ended Jul 26, 2024
In the current quarter, revenue and cost of revenue both decreased compared to the previous quarter, leading to a lower gross profit but a higher gross margin. Compared to the same quarter last year, revenue, gross profit, and cost of revenue all increased, with gross margin also improving.
Gross margin takeaway
Quarter ended Jul 26, 2024 · FY2025 Q1
In the current quarter, revenue and cost of revenue both decreased compared to the previous quarter, leading to a lower gross profit but a higher gross margin. Compared to the same quarter last year, revenue, gross profit, and cost of revenue all increased, with gross margin also improving.
- The strongest observable margin driver is the consistent improvement in gross margin relative to both the prior quarter and the year-ago quarter.
- Sequentially, revenue and gross profit decreased while gross margin improved. Year-over-year, all three metrics increased and gross margin again improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
71.3%
Gross profit
$1.1B
Revenue
$1.5B
Cost of revenue
$443.0M
Quarter-over-quarter change
+0.7 pts
Year-over-year change
+1.7 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 |
|---|---|---|---|---|
| Oct 27, 2023 | $1.6B | $1.1B | $452.0M | 71.1% |
| Jan 26, 2024 | $1.6B | $1.2B | $455.0M | 71.7% |
| Apr 26, 2024 | $1.7B | $1.2B | $492.0M | 70.5% |
| Jul 26, 2024 | $1.5B | $1.1B | $443.0M | 71.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Apr 26, 2024
+0.7 pts
Year-over-year change
Jul 28, 2023
+1.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the consistent improvement in gross margin relative to both the prior quarter and the year-ago quarter.
Sequentially, revenue and gross profit decreased while gross margin improved. Year-over-year, all three metrics increased and gross margin again improved.
Monitor the sustainability of gross margin improvement given the varying revenue levels.