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Agilent Technologies, Inc. stock research

Jan 31, 2023

FY2023 Q1

Agilent Technologies (A) Gross Margin — Quarter Ended Jan 31, 2023

Revenue was stable compared to the prior quarter, while gross profit and cost of revenue both decreased, resulting in a slightly improved gross margin. Compared to the same quarter one year earlier, revenue, gross profit, and cost of revenue were all higher, and gross margin improved modestly.

Gross margin takeaway

Quarter ended Jan 31, 2023 · FY2023 Q1

Revenue was stable compared to the prior quarter, while gross profit and cost of revenue both decreased, resulting in a slightly improved gross margin. Compared to the same quarter one year earlier, revenue, gross profit, and cost of revenue were all higher, and gross margin improved modestly.

  • The gross margin improved relative to both the prior quarter and the same quarter last year, driven by a proportionally larger decline in cost of revenue compared to revenue in the sequential comparison, and by revenue growth outpacing cost growth in the year-over-year comparison.
  • Sequentially, revenue was stable, gross profit was lower, and cost of revenue was lower, leading to a slightly higher gross margin. Year over year, revenue, gross profit, and cost of revenue were all higher, with gross margin improving modestly.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

55.1%

Gross profit

$968.0M

Revenue

$1.8B

Cost of revenue

$788.0M

Quarter-over-quarter change

n/a

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.

PeriodRevenueGross profitCost of revenueGross margin
Jan 31, 2023$1.8B$968.0M$788.0M55.1%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Previous quarter unavailable

n/a

Year-over-year change

Jan 31, 2022

+0.8 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The gross margin improved relative to both the prior quarter and the same quarter last year, driven by a proportionally larger decline in cost of revenue compared to revenue in the sequential comparison, and by revenue growth outpacing cost growth in the year-over-year comparison.

Sequentially, revenue was stable, gross profit was lower, and cost of revenue was lower, leading to a slightly higher gross margin. Year over year, revenue, gross profit, and cost of revenue were all higher, with gross margin improving modestly.

Monitor the trajectory of cost of revenue relative to revenue, as the current quarter's improvement in gross margin was supported by a reduction in costs.