Agilent Technologies, Inc. stock research
FY2024 Q3
Agilent Technologies (A) Gross Margin — Quarter Ended Jul 31, 2024
Revenue was unchanged from the prior quarter but lower than the same quarter a year earlier. Gross profit was essentially stable sequentially, while the cost of revenue decreased significantly year-over-year, leading to an improved gross margin.
Gross margin takeaway
Quarter ended Jul 31, 2024 · FY2024 Q3
Revenue was unchanged from the prior quarter but lower than the same quarter a year earlier. Gross profit was essentially stable sequentially, while the cost of revenue decreased significantly year-over-year, leading to an improved gross margin.
- The year-over-year gross margin improvement was primarily associated with a reduction in cost of revenue relative to revenue. The cost of revenue decreased substantially compared to the same quarter last year, while revenue declined by a smaller proportion.
- Compared to the preceding quarter, gross margin was slightly weaker, as cost of revenue increased while revenue remained flat. Compared to the same quarter one year earlier, gross margin improved significantly, driven by a lower cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
54.2%
Gross profit
$855.0M
Revenue
$1.6B
Cost of revenue
$723.0M
Quarter-over-quarter change
-0.2 pts
Year-over-year change
+14.8 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Oct 31, 2023 | $1.7B | $915.0M | $773.0M | 54.2% |
| Jan 31, 2024 | $1.7B | $908.0M | $750.0M | 54.8% |
| Apr 30, 2024 | $1.6B | $856.0M | $717.0M | 54.4% |
| Jul 31, 2024 | $1.6B | $855.0M | $723.0M | 54.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Apr 30, 2024
-0.2 pts
Year-over-year change
Jul 31, 2023
+14.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The year-over-year gross margin improvement was primarily associated with a reduction in cost of revenue relative to revenue. The cost of revenue decreased substantially compared to the same quarter last year, while revenue declined by a smaller proportion.
Compared to the preceding quarter, gross margin was slightly weaker, as cost of revenue increased while revenue remained flat. Compared to the same quarter one year earlier, gross margin improved significantly, driven by a lower cost of revenue.
Monitor the trend in cost of revenue, as it increased slightly from the prior quarter after a large year-over-year decline.