Analog Devices, Inc. stock research
FY2023 Q4
Analog Devices (ADI) Gross Margin — Quarter Ended Oct 28, 2023
Revenue decreased from the prior quarter and the same quarter last year, while cost of revenue remained unchanged, leading to lower gross profit and a weakened gross margin. The gross margin decline reflects the impact of reduced revenue on a stable cost base.
Gross margin takeaway
Quarter ended Oct 28, 2023 · FY2023 Q4
Revenue decreased from the prior quarter and the same quarter last year, while cost of revenue remained unchanged, leading to lower gross profit and a weakened gross margin. The gross margin decline reflects the impact of reduced revenue on a stable cost base.
- The primary observable driver of the gross margin decline is the decrease in revenue, as cost of revenue held steady across the comparative periods.
- Compared to the immediately preceding quarter, revenue and gross profit were lower, and gross margin weakened. Versus the same quarter one year earlier, all three metrics were lower, with gross margin declining further.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
60.6%
Gross profit
$1.6B
Revenue
$2.7B
Cost of revenue
$1.1B
Quarter-over-quarter change
-3.1 pts
Year-over-year change
-5.4 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% |
| Oct 28, 2023 | $2.7B | $1.6B | $1.1B | 60.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jul 29, 2023
-3.1 pts
Year-over-year change
Oct 29, 2022
-5.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable driver of the gross margin decline is the decrease in revenue, as cost of revenue held steady across the comparative periods.
Compared to the immediately preceding quarter, revenue and gross profit were lower, and gross margin weakened. Versus the same quarter one year earlier, all three metrics were lower, with gross margin declining further.
Monitor the trajectory of revenue relative to the stable cost of revenue, as any further revenue decline could pressure gross margin further.