Analog Devices, Inc. stock research
FY2023 Q3
Analog Devices (ADI) Gross Margin — Quarter Ended Jul 29, 2023
Revenue, gross profit, and cost of revenue were roughly stable compared to the same quarter one year earlier, while gross margin weakened slightly from the prior quarter and year-ago periods. The relationship among the metrics shows that cost of revenue held steady, causing gross profit to move in line with revenue.
Gross margin takeaway
Quarter ended Jul 29, 2023 · FY2023 Q3
Revenue, gross profit, and cost of revenue were roughly stable compared to the same quarter one year earlier, while gross margin weakened slightly from the prior quarter and year-ago periods. The relationship among the metrics shows that cost of revenue held steady, causing gross profit to move in line with revenue.
- Gross margin decreased slightly from both the immediately preceding quarter and the same quarter one year earlier, despite stable revenue and cost of revenue. This indicates that the proportion of cost of revenue within revenue edged higher.
- Revenue, gross profit, and cost of revenue were all lower compared to the prior quarter, while compared to the same quarter one year earlier they were mixed with revenue slightly lower, gross profit roughly unchanged, and cost of revenue slightly lower. Gross margin was lower versus both periods.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
63.8%
Gross profit
$2.0B
Revenue
$3.1B
Cost of revenue
$1.1B
Quarter-over-quarter change
-2.0 pts
Year-over-year change
-1.9 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 |
|---|---|---|---|---|
| Jan 28, 2023 | $3.2B | $2.1B | $1.1B | 65.4% |
| Apr 29, 2023 | $3.3B | $2.1B | $1.1B | 65.7% |
| Jul 29, 2023 | $3.1B | $2.0B | $1.1B | 63.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Apr 29, 2023
-2.0 pts
Year-over-year change
Jul 30, 2022
-1.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin decreased slightly from both the immediately preceding quarter and the same quarter one year earlier, despite stable revenue and cost of revenue. This indicates that the proportion of cost of revenue within revenue edged higher.
Revenue, gross profit, and cost of revenue were all lower compared to the prior quarter, while compared to the same quarter one year earlier they were mixed with revenue slightly lower, gross profit roughly unchanged, and cost of revenue slightly lower. Gross margin was lower versus both periods.
Monitor the relationship between revenue and cost of revenue in subsequent quarters to see if the marginal increase in cost relative to revenue persists.