NetApp, Inc. stock research
FY2025 Q1
NetApp (NTAP) Gross Margin — Quarter Ended Jul 25, 2025
Revenue was lower than the prior quarter but higher than the same quarter last year. Gross margin improved in both comparisons, with cost of revenue decreasing more than revenue on a relative basis.
Gross margin takeaway
Quarter ended Jul 25, 2025 · FY2025 Q1
Revenue was lower than the prior quarter but higher than the same quarter last year. Gross margin improved in both comparisons, with cost of revenue decreasing more than revenue on a relative basis.
- The strongest observable margin driver was the decline in cost of revenue relative to revenue. Compared to the prior quarter, cost of revenue decreased at a faster rate, resulting in a higher gross margin.
- Versus the prior quarter, revenue and gross profit decreased, but gross margin improved. Versus the same quarter last year, revenue and gross profit increased, and gross margin also improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
70.4%
Gross profit
$1.1B
Revenue
$1.6B
Cost of revenue
$461.0M
Quarter-over-quarter change
+1.5 pts
Year-over-year change
+0.9 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 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% |
| Jul 25, 2025 | $1.6B | $1.1B | $461.0M | 70.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Apr 25, 2025
+1.5 pts
Year-over-year change
Jul 28, 2023
+0.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver was the decline in cost of revenue relative to revenue. Compared to the prior quarter, cost of revenue decreased at a faster rate, resulting in a higher gross margin.
Versus the prior quarter, revenue and gross profit decreased, but gross margin improved. Versus the same quarter last year, revenue and gross profit increased, and gross margin also improved.
Monitor the trend in cost of revenue as a proportion of revenue in upcoming quarters to assess whether the margin improvement is sustainable.