Agilent Technologies, Inc. stock research
FY2025 Q3
Agilent Technologies (A) Gross Margin — Quarter Ended Jul 31, 2025
Revenue was stable compared to the prior quarter and higher than a year ago, while gross profit improved in both comparisons. However, the cost of revenue increased at a faster pace, causing gross margin to decline from both the preceding quarter and the same quarter last year.
Gross margin takeaway
Quarter ended Jul 31, 2025 · FY2025 Q3
Revenue was stable compared to the prior quarter and higher than a year ago, while gross profit improved in both comparisons. However, the cost of revenue increased at a faster pace, causing gross margin to decline from both the preceding quarter and the same quarter last year.
- The increase in cost of revenue outpaced the growth in revenue, which was the most observable factor driving the gross margin decline.
- Sequentially, revenue was stable, gross profit was higher, but cost of revenue was also higher, resulting in a lower gross margin. Year over year, both revenue and gross profit were higher, yet the larger increase in cost of revenue caused gross margin to weaken.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
51.1%
Gross profit
$888.0M
Revenue
$1.7B
Cost of revenue
$850.0M
Quarter-over-quarter change
-0.8 pts
Year-over-year change
-3.1 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, 2024 | $1.7B | $916.0M | $785.0M | 53.9% |
| Jan 31, 2025 | $1.7B | $899.0M | $782.0M | 53.5% |
| Apr 30, 2025 | $1.7B | $866.0M | $802.0M | 51.9% |
| Jul 31, 2025 | $1.7B | $888.0M | $850.0M | 51.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Apr 30, 2025
-0.8 pts
Year-over-year change
Jul 31, 2024
-3.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The increase in cost of revenue outpaced the growth in revenue, which was the most observable factor driving the gross margin decline.
Sequentially, revenue was stable, gross profit was higher, but cost of revenue was also higher, resulting in a lower gross margin. Year over year, both revenue and gross profit were higher, yet the larger increase in cost of revenue caused gross margin to weaken.
Monitor the trend of cost of revenue relative to revenue in the coming quarters for further margin impact.