A

Agilent Technologies, Inc. stock research

Oct 31, 2024

FY2024 Q4

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

Revenue and gross profit increased compared to the prior quarter, while cost of revenue also rose. Gross margin was slightly lower than both the previous quarter and the same quarter last year.

Gross margin takeaway

Quarter ended Oct 31, 2024 · FY2024 Q4

Revenue and gross profit increased compared to the prior quarter, while cost of revenue also rose. Gross margin was slightly lower than both the previous quarter and the same quarter last year.

  • The strongest observable driver of the gross margin change was the movement in cost of revenue relative to revenue. Cost of revenue increased at a rate that outpaced the change in revenue, resulting in a narrower margin.
  • Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all higher, but gross margin decreased. Compared to the same quarter one year earlier, revenue was stable, gross profit was slightly higher, and cost of revenue was higher, resulting in a lower gross margin.

Gross margin snapshot

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

Gross margin

53.9%

Gross profit

$916.0M

Revenue

$1.7B

Cost of revenue

$785.0M

Quarter-over-quarter change

-0.3 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
Jan 31, 2024$1.7B$908.0M$750.0M54.8%
Apr 30, 2024$1.6B$856.0M$717.0M54.4%
Jul 31, 2024$1.6B$855.0M$723.0M54.2%
Oct 31, 2024$1.7B$916.0M$785.0M53.9%

Quarterly comparisons

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

Previous-quarter change

Jul 31, 2024

-0.3 pts

Year-over-year change

Oct 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 the gross margin change was the movement in cost of revenue relative to revenue. Cost of revenue increased at a rate that outpaced the change in revenue, resulting in a narrower margin.

Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all higher, but gross margin decreased. Compared to the same quarter one year earlier, revenue was stable, gross profit was slightly higher, and cost of revenue was higher, resulting in a lower gross margin.

Monitor the trend of cost of revenue as a proportion of revenue, as this ratio directly influences gross margin movements.