Analog Devices, Inc. stock research
FY2024 Q1
Analog Devices (ADI) Gross Margin — Quarter Ended Feb 3, 2024
Revenue declined compared to both the prior quarter and the same quarter last year, resulting in a lower gross profit. Gross margin weakened as cost of revenue did not decrease proportionally with revenue.
Gross margin takeaway
Quarter ended Feb 3, 2024 · FY2024 Q1
Revenue declined compared to both the prior quarter and the same quarter last year, resulting in a lower gross profit. Gross margin weakened as cost of revenue did not decrease proportionally with revenue.
- The relationship between revenue and cost of revenue is the strongest observable driver. Revenue decreased while cost of revenue also declined but at a slower pace, compressing the gross margin.
- Compared to the immediately preceding quarter, revenue and gross profit were lower, and gross margin weakened. Compared to the same quarter one year earlier, revenue and gross profit were substantially lower, and gross margin weakened further.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
58.7%
Gross profit
$1.5B
Revenue
$2.5B
Cost of revenue
$1.0B
Quarter-over-quarter change
-2.0 pts
Year-over-year change
-6.7 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 |
|---|---|---|---|---|
| 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% |
| Feb 3, 2024 | $2.5B | $1.5B | $1.0B | 58.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Oct 28, 2023
-2.0 pts
Year-over-year change
Jan 28, 2023
-6.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The relationship between revenue and cost of revenue is the strongest observable driver. Revenue decreased while cost of revenue also declined but at a slower pace, compressing the gross margin.
Compared to the immediately preceding quarter, revenue and gross profit were lower, and gross margin weakened. Compared to the same quarter one year earlier, revenue and gross profit were substantially lower, and gross margin weakened further.
Monitor revenue trends by end market as disclosed in the filing, as shifts in end-market demand may affect future performance.