Gross Margin % is calculated as gross profit divided by its revenue. NetApp's Gross Profit for the
three
months ended in Apr. 2025 was $1,193 Mil. NetApp's Revenue for the
three
months ended in Apr. 2025 was $1,732 Mil. Therefore, NetApp's Gross Margin % for the quarter that ended in Apr. 2025 was 68.88%.
The historical rank and industry rank for NetApp's Gross Margin % or its related term are showing as below:
NTAP'
s Gross Margin % Range Over the Past 10 Years
Min: 60.82 Med: 66.29 Max: 70.72
Current: 70.19
During the past 13 years, the highestGross Margin % of NetApp was 70.72%. The lowest was 60.82%. And the median was 66.29%.
NTAP's Gross Margin % is ranked better than 96.98% of 2418
companies
in the Hardware industry
Industry Median: 24.54
vs NTAP: 70.19
NetApp had a gross margin of 68.88% for the quarter that ended in Apr. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for NetApp was 1.20% per year.
NetApp Gross Margin % Historical Data
The historical data trend for NetApp's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Computer Hardware subindustry, NetApp's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
NetApp's Gross Margin % Distribution in the Hardware Industry
For the Hardware industry and Technology sector, NetApp's Gross Margin % distribution charts can be found below:
* The bar in red indicates where NetApp's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
NetApp (NAS:NTAP) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
NetApp had a gross margin of 68.88% for the quarter that ended in Apr. 2025 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
NetApp Gross Margin % Related Terms
Thank you for viewing the detailed overview of NetApp's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
NetApp Inc is a provider of enterprise data management and storage solutions. The company's segments include Hybrid Cloud and Public Cloud. It generates maximum revenue from the Hybrid Cloud segment. The Hybrid Cloud segment offers a portfolio of storage management and infrastructure solutions that help customers recast their traditional data centers with the power of cloud. This portfolio is designed to operate with public clouds to unlock the potential of hybrid, multi-cloud operations. Hybrid Cloud is composed of software, hardware, and related support, as well as professional and other services.
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