AD

Analog Devices, Inc. stock research

Jan 28, 2023

FY2023 Q1

Analog Devices (ADI) Gross Margin — Quarter Ended Jan 28, 2023

Revenue and gross profit were stable compared to the immediately preceding quarter, while cost of revenue remained at a similar level, resulting in a slightly lower gross margin. Compared to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was lower, and gross margin improved.

Gross margin takeaway

Quarter ended Jan 28, 2023 · FY2023 Q1

Revenue and gross profit were stable compared to the immediately preceding quarter, while cost of revenue remained at a similar level, resulting in a slightly lower gross margin. Compared to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was lower, and gross margin improved.

  • The strongest observable margin driver is the improvement in gross margin relative to the year-ago quarter, as revenue increased while cost of revenue decreased.
  • Compared to the immediately preceding quarter, gross margin was slightly lower, with revenue and gross profit essentially unchanged. Compared to the same quarter one year earlier, gross margin was higher, driven by higher revenue and lower cost of revenue.

Gross margin snapshot

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

Gross margin

65.4%

Gross profit

$2.1B

Revenue

$3.2B

Cost of revenue

$1.1B

Quarter-over-quarter change

n/a

Year-over-year change

+13.1 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 28, 2023$3.2B$2.1B$1.1B65.4%

Quarterly comparisons

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

Previous-quarter change

Previous quarter unavailable

n/a

Year-over-year change

Jan 29, 2022

+13.1 pts

What the margin says

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

The strongest observable margin driver is the improvement in gross margin relative to the year-ago quarter, as revenue increased while cost of revenue decreased.

Compared to the immediately preceding quarter, gross margin was slightly lower, with revenue and gross profit essentially unchanged. Compared to the same quarter one year earlier, gross margin was higher, driven by higher revenue and lower cost of revenue.

Monitor the trend in cost of revenue relative to revenue, as a shift could affect gross margin stability.