A

Agilent Technologies, Inc. stock research

Jan 31, 2024

FY2024 Q1

Agilent Technologies (A) Gross Margin — Quarter Ended Jan 31, 2024

Revenue was unchanged from the prior quarter, while cost of revenue declined, resulting in a higher gross margin despite a slight decrease in gross profit. Versus the year-ago period, both revenue and gross profit were lower, and gross margin was slightly lower.

Gross margin takeaway

Quarter ended Jan 31, 2024 · FY2024 Q1

Revenue was unchanged from the prior quarter, while cost of revenue declined, resulting in a higher gross margin despite a slight decrease in gross profit. Versus the year-ago period, both revenue and gross profit were lower, and gross margin was slightly lower.

  • The strongest observable driver of gross margin change is the movement in cost of revenue relative to revenue.
  • Sequentially, gross margin improved as cost of revenue decreased more than revenue. Year over year, gross margin weakened as the decline in revenue outpaced the decline in cost of revenue.

Gross margin snapshot

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

Gross margin

54.8%

Gross profit

$908.0M

Revenue

$1.7B

Cost of revenue

$750.0M

Quarter-over-quarter change

+0.6 pts

Year-over-year change

-0.4 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
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%
Jan 31, 2024$1.7B$908.0M$750.0M54.8%

Quarterly comparisons

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

Previous-quarter change

Oct 31, 2023

+0.6 pts

Year-over-year change

Jan 31, 2023

-0.4 pts

What the margin says

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

The strongest observable driver of gross margin change is the movement in cost of revenue relative to revenue.

Sequentially, gross margin improved as cost of revenue decreased more than revenue. Year over year, gross margin weakened as the decline in revenue outpaced the decline in cost of revenue.

Monitor the trajectory of cost of revenue relative to revenue, as it has been a key factor in margin shifts.

A Gross Margin — Quarter Ended Jan 31, 2024