NetApp, Inc. stock research
FY2025 Q4
NetApp (NTAP) Gross Margin — Quarter Ended Apr 25, 2025
Revenue was stable versus a year ago and higher sequentially, while gross profit was stable year over year and higher sequentially. Gross margin weakened slightly from both the prior quarter and the same quarter last year, reflecting a proportionally larger increase in cost of revenue relative to revenue.
Gross margin takeaway
Quarter ended Apr 25, 2025 · FY2025 Q4
Revenue was stable versus a year ago and higher sequentially, while gross profit was stable year over year and higher sequentially. Gross margin weakened slightly from both the prior quarter and the same quarter last year, reflecting a proportionally larger increase in cost of revenue relative to revenue.
- The primary observable driver of gross margin was the relationship between revenue and cost of revenue. Compared to both the prior quarter and the year-ago quarter, cost of revenue grew at a faster pace than revenue, compressing margin.
- Gross margin was lower than the immediately preceding quarter and lower than the same quarter one year earlier. The decline from the prior quarter was modest, while the decline from the year-ago quarter was more pronounced.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
68.9%
Gross profit
$1.2B
Revenue
$1.7B
Cost of revenue
$539.0M
Quarter-over-quarter change
-0.9 pts
Year-over-year change
-1.6 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 |
|---|---|---|---|---|
| Jul 26, 2024 | $1.5B | $1.1B | $443.0M | 71.3% |
| Oct 25, 2024 | $1.7B | $1.2B | $481.0M | 71.0% |
| Jan 24, 2025 | $1.6B | $1.1B | $496.0M | 69.8% |
| Apr 25, 2025 | $1.7B | $1.2B | $539.0M | 68.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jan 24, 2025
-0.9 pts
Year-over-year change
Apr 26, 2024
-1.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable driver of gross margin was the relationship between revenue and cost of revenue. Compared to both the prior quarter and the year-ago quarter, cost of revenue grew at a faster pace than revenue, compressing margin.
Gross margin was lower than the immediately preceding quarter and lower than the same quarter one year earlier. The decline from the prior quarter was modest, while the decline from the year-ago quarter was more pronounced.
Monitor whether cost of revenue continues to rise at a rate that outpaces revenue growth in future periods.