NetApp Warns Gross Margin Will Fall In The Second Quarter
NTAP sits 77% above its 52-week low of $93.69.
Summary
NetApp guided Q2 FY27 gross margin to 67-68%, down from 70.6% in Q1, citing a higher mix of lower-margin product revenue and less pricing benefit. This follows yesterday's Q1 beat and raised full-year outlook, but the margin warning is new and explains the 7.9% premarket drop. The company still expects strong revenue growth, but the margin compression signals cost pressures that could weigh on profitability. Watch whether pricing actions or product mix improvements offset the decline in subsequent quarters.
At the time of this announcement, NTAP was trading at $165.98 on NASDAQ in the Technology sector, with a market capitalization of approximately $35.5B. The 52-week trading range was $93.69 to $209.06. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Benzinga.