NetApp, Inc. stock research
FY2025 Q2
NetApp (NTAP) Gross Margin — Quarter Ended Oct 25, 2024
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin was slightly lower than the prior quarter but remained broadly stable relative to the year-ago period.
Gross margin takeaway
Quarter ended Oct 25, 2024 · FY2025 Q2
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin was slightly lower than the prior quarter but remained broadly stable relative to the year-ago period.
- Gross profit grew faster than cost of revenue on a sequential basis, supporting margin stability. The year-over-year comparison shows gross profit and cost of revenue both increased, with gross margin essentially unchanged.
- Compared to the immediately preceding quarter, revenue and gross profit were higher while gross margin was slightly lower. Compared to the same quarter one year earlier, revenue and gross profit were higher and gross margin was essentially stable.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
71.0%
Gross profit
$1.2B
Revenue
$1.7B
Cost of revenue
$481.0M
Quarter-over-quarter change
-0.3 pts
Year-over-year change
-0.1 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 |
|---|---|---|---|---|
| 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% |
| Oct 25, 2024 | $1.7B | $1.2B | $481.0M | 71.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jul 26, 2024
-0.3 pts
Year-over-year change
Oct 27, 2023
-0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit grew faster than cost of revenue on a sequential basis, supporting margin stability. The year-over-year comparison shows gross profit and cost of revenue both increased, with gross margin essentially unchanged.
Compared to the immediately preceding quarter, revenue and gross profit were higher while gross margin was slightly lower. Compared to the same quarter one year earlier, revenue and gross profit were higher and gross margin was essentially stable.
Monitor the relationship between revenue growth and cost of revenue growth in future quarters to assess margin sustainability.