On which set of norms did he receive 23rd %ile scores? The NT norms or the gifted norms? And was he administered the primary (k-3) or intermediate (4-6) level? If he's in 3rd grade, I'm guessing he was administered the primary level, in which case he is not being compared to same age/higher grade kids, but actually same grade/younger kids. Your scores suggest that he may have been compared to the gifted norms, as otherwise this would be pretty discrepant results. 23rd %ile is slightly below average--presumably for an identified gifted student. That is not entirely inconsistent with 95th %ile on a third grade test, especially with a kid who is old for grade. (Of course, as SouthLake indicated, we don't know what the norm group for the 95th %ile was, so not sure if any of these assumptions are correct. Do you know what the norm groups were?)