A

Agilent Technologies, Inc. stock research

Oct 31, 2023

FY2023 Q4

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

This quarter's gross margin improved compared to the prior quarter, as cost of revenue decreased while revenue remained steady. Compared to the same quarter last year, gross margin was slightly lower, with both revenue and gross profit slightly lower.

Gross margin takeaway

Quarter ended Oct 31, 2023 · FY2023 Q4

This quarter's gross margin improved compared to the prior quarter, as cost of revenue decreased while revenue remained steady. Compared to the same quarter last year, gross margin was slightly lower, with both revenue and gross profit slightly lower.

  • The most notable driver was the reduction in cost of revenue relative to revenue, which led to a significant increase in gross profit and margin from the prior quarter.
  • Gross margin strengthened from the prior quarter, reversing a weaker performance. Versus the same quarter last year, the margin was slightly weakened.

Gross margin snapshot

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

Gross margin

54.2%

Gross profit

$915.0M

Revenue

$1.7B

Cost of revenue

$773.0M

Quarter-over-quarter change

+14.9 pts

Year-over-year change

-0.5 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%
Oct 31, 2023$1.7B$915.0M$773.0M54.2%

Quarterly comparisons

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

Previous-quarter change

Jul 31, 2023

+14.9 pts

Year-over-year change

Oct 31, 2022

-0.5 pts

What the margin says

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

The most notable driver was the reduction in cost of revenue relative to revenue, which led to a significant increase in gross profit and margin from the prior quarter.

Gross margin strengthened from the prior quarter, reversing a weaker performance. Versus the same quarter last year, the margin was slightly weakened.

Monitor the trajectory of cost of revenue to assess the sustainability of the current margin level, noting that the filing highlights the company's belief that its liquidity needs will be met through cash, operations, and access to capital markets.

A Gross Margin — Quarter Ended Oct 31, 2023