A

Agilent Technologies, Inc. stock research

Jul 31, 2023

FY2023 Q3

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

Revenue remained stable compared to both the prior quarter and the same quarter a year earlier, but gross profit declined and cost of revenue rose, resulting in a lower gross margin for the current period.

Gross margin takeaway

Quarter ended Jul 31, 2023 · FY2023 Q3

Revenue remained stable compared to both the prior quarter and the same quarter a year earlier, but gross profit declined and cost of revenue rose, resulting in a lower gross margin for the current period.

  • The increase in cost of revenue, while revenue held steady, was the most prominent factor compressing gross profit and weakening gross margin.
  • Gross margin weakened relative to both the immediately preceding quarter and the same quarter one year earlier, as cost of revenue was higher and gross profit was lower despite unchanged revenue.

Gross margin snapshot

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

Gross margin

39.4%

Gross profit

$658.0M

Revenue

$1.7B

Cost of revenue

$1.0B

Quarter-over-quarter change

-14.5 pts

Year-over-year change

-15.3 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%
Apr 30, 2023$1.7B$924.0M$793.0M53.8%
Jul 31, 2023$1.7B$658.0M$1.0B39.4%

Quarterly comparisons

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

Previous-quarter change

Apr 30, 2023

-14.5 pts

Year-over-year change

Jul 31, 2022

-15.3 pts

What the margin says

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

The increase in cost of revenue, while revenue held steady, was the most prominent factor compressing gross profit and weakening gross margin.

Gross margin weakened relative to both the immediately preceding quarter and the same quarter one year earlier, as cost of revenue was higher and gross profit was lower despite unchanged revenue.

Monitor the trajectory of cost of revenue, which increased substantially in the current quarter compared to prior periods.

A Gross Margin — Quarter Ended Jul 31, 2023