A

Agilent Technologies, Inc. stock research

Jan 31, 2025

FY2025 Q1

Agilent Technologies (A) Gross Margin — Quarter Ended Jan 31, 2025

In the current quarter, gross profit and cost of revenue both decreased relative to the preceding quarter, while revenue remained stable, resulting in a slightly lower gross margin. Compared with the same quarter a year ago, gross profit was lower and cost of revenue was higher, again with stable revenue, leading to a further weakened gross margin.

Gross margin takeaway

Quarter ended Jan 31, 2025 · FY2025 Q1

In the current quarter, gross profit and cost of revenue both decreased relative to the preceding quarter, while revenue remained stable, resulting in a slightly lower gross margin. Compared with the same quarter a year ago, gross profit was lower and cost of revenue was higher, again with stable revenue, leading to a further weakened gross margin.

  • The most observable change was the year-over-year increase in cost of revenue alongside stable revenue, which directly contributed to a lower gross profit and a weaker gross margin.
  • Gross margin weakened compared to both the immediately preceding quarter and the same quarter one year earlier. The decline was driven by a combination of lower gross profit and higher cost of revenue relative to revenue.

Gross margin snapshot

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

Gross margin

53.5%

Gross profit

$899.0M

Revenue

$1.7B

Cost of revenue

$782.0M

Quarter-over-quarter change

-0.4 pts

Year-over-year change

-1.3 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, 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%
Jan 31, 2025$1.7B$899.0M$782.0M53.5%

Quarterly comparisons

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

Previous-quarter change

Oct 31, 2024

-0.4 pts

Year-over-year change

Jan 31, 2024

-1.3 pts

What the margin says

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

The most observable change was the year-over-year increase in cost of revenue alongside stable revenue, which directly contributed to a lower gross profit and a weaker gross margin.

Gross margin weakened compared to both the immediately preceding quarter and the same quarter one year earlier. The decline was driven by a combination of lower gross profit and higher cost of revenue relative to revenue.

Monitor the trend in cost of revenue, as it increased year over year while revenue was essentially flat, which could continue to pressure gross margin if sustained.