A

Agilent Technologies, Inc. stock research

Apr 30, 2024

FY2024 Q2

Agilent Technologies (A) Gross Margin — Quarter Ended Apr 30, 2024

Revenue declined compared to the prior quarter and the same quarter a year earlier, and gross profit also decreased. The cost of revenue was lower, yet the gross margin weakened slightly from the prior quarter and improved from a year ago.

Gross margin takeaway

Quarter ended Apr 30, 2024 · FY2024 Q2

Revenue declined compared to the prior quarter and the same quarter a year earlier, and gross profit also decreased. The cost of revenue was lower, yet the gross margin weakened slightly from the prior quarter and improved from a year ago.

  • The strongest observable driver is the change in cost of revenue relative to revenue. Year-over-year, the cost of revenue decreased at a faster pace than revenue, which supported the gross margin improvement.
  • Sequentially, gross margin edged lower as revenue fell more than the cost of revenue. Compared to the same period last year, the margin improved because the cost of revenue declined more sharply than revenue.

Gross margin snapshot

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

Gross margin

54.4%

Gross profit

$856.0M

Revenue

$1.6B

Cost of revenue

$717.0M

Quarter-over-quarter change

-0.3 pts

Year-over-year change

+0.6 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
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%
Apr 30, 2024$1.6B$856.0M$717.0M54.4%

Quarterly comparisons

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

Previous-quarter change

Jan 31, 2024

-0.3 pts

Year-over-year change

Apr 30, 2023

+0.6 pts

What the margin says

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

The strongest observable driver is the change in cost of revenue relative to revenue. Year-over-year, the cost of revenue decreased at a faster pace than revenue, which supported the gross margin improvement.

Sequentially, gross margin edged lower as revenue fell more than the cost of revenue. Compared to the same period last year, the margin improved because the cost of revenue declined more sharply than revenue.

Monitor the cost of revenue components, particularly the product and service cost splits provided in the filing.