NetApp, Inc. stock research
FY2026 Q3
NetApp (NTAP) Gross Margin — Quarter Ended Jan 23, 2026
Revenue was stable compared to the prior quarter and higher than the same quarter last year. Gross profit was stable sequentially and higher year-over-year, while cost of revenue was higher sequentially and slightly higher year-over-year, resulting in gross margin that weakened from the prior quarter but improved from the same quarter last year.
Gross margin takeaway
Quarter ended Jan 23, 2026 · FY2026 Q3
Revenue was stable compared to the prior quarter and higher than the same quarter last year. Gross profit was stable sequentially and higher year-over-year, while cost of revenue was higher sequentially and slightly higher year-over-year, resulting in gross margin that weakened from the prior quarter but improved from the same quarter last year.
- The strongest observable margin driver is the relationship between revenue and cost of revenue: revenue was stable sequentially while cost of revenue increased, which weakened gross margin. Compared to a year ago, revenue grew more than cost of revenue, supporting margin improvement.
- Compared to the immediately preceding quarter, gross margin weakened as cost of revenue increased while revenue remained stable. Compared to the same quarter one year earlier, gross margin improved as revenue grew more than cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
70.6%
Gross profit
$1.2B
Revenue
$1.7B
Cost of revenue
$504.0M
Quarter-over-quarter change
-1.4 pts
Year-over-year change
+0.8 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 |
|---|---|---|---|---|
| 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% |
| Jan 23, 2026 | $1.7B | $1.2B | $504.0M | 70.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Oct 24, 2025
-1.4 pts
Year-over-year change
Jan 24, 2025
+0.8 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 and cost of revenue: revenue was stable sequentially while cost of revenue increased, which weakened gross margin. Compared to a year ago, revenue grew more than cost of revenue, supporting margin improvement.
Compared to the immediately preceding quarter, gross margin weakened as cost of revenue increased while revenue remained stable. Compared to the same quarter one year earlier, gross margin improved as revenue grew more than cost of revenue.
Monitor the trend in cost of revenue relative to revenue, as a sequential increase in cost without corresponding revenue growth pressured gross margin.