NetApp, Inc. stock research
FY2025 Q2
NetApp (NTAP) Gross Margin — Quarter Ended Oct 24, 2025
Revenue and gross profit both increased compared to the immediately preceding quarter and the same quarter one year earlier. Gross margin improved relative to both prior periods, as cost of revenue grew at a slower pace than revenue.
Gross margin takeaway
Quarter ended Oct 24, 2025 · FY2025 Q2
Revenue and gross profit both increased compared to the immediately preceding quarter and the same quarter one year earlier. Gross margin improved relative to both prior periods, as cost of revenue grew at a slower pace than revenue.
- The strongest observable margin driver is the relationship between revenue growth and cost of revenue growth. Revenue increased more than cost of revenue compared to both the prior quarter and the year-ago quarter, leading to an improved gross margin.
- Compared to the immediately preceding quarter, gross margin is higher. Compared to the same quarter one year earlier, gross margin is also higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
72.0%
Gross profit
$1.2B
Revenue
$1.7B
Cost of revenue
$478.0M
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 |
|---|---|---|---|---|
| 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% |
| Oct 24, 2025 | $1.7B | $1.2B | $478.0M | 72.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jul 25, 2025
+1.5 pts
Year-over-year change
Oct 27, 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 is the relationship between revenue growth and cost of revenue growth. Revenue increased more than cost of revenue compared to both the prior quarter and the year-ago quarter, leading to an improved gross margin.
Compared to the immediately preceding quarter, gross margin is higher. Compared to the same quarter one year earlier, gross margin is also higher.
Monitor the trend in cost of revenue relative to revenue, as its slower growth was the key factor in margin improvement.