Analog Devices, Inc. stock research
FY2024 Q2
Analog Devices (ADI) Gross Margin — Quarter Ended May 4, 2024
Revenue and gross profit both decreased from the prior quarter and from the same quarter last year, while cost of revenue declined at a slower pace. As a result, gross margin weakened compared with both the immediately preceding quarter and the same quarter one year earlier.
Gross margin takeaway
Quarter ended May 4, 2024 · FY2024 Q2
Revenue and gross profit both decreased from the prior quarter and from the same quarter last year, while cost of revenue declined at a slower pace. As a result, gross margin weakened compared with both the immediately preceding quarter and the same quarter one year earlier.
- Gross margin for the current quarter is lower than both the prior quarter and the year-ago quarter, driven by a proportionally smaller decline in cost of revenue relative to the decline in revenue.
- Compared with the immediately preceding quarter, revenue and gross profit are lower, and gross margin has weakened. Compared with the same quarter one year earlier, revenue and gross profit are also lower, with gross margin further weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
54.7%
Gross profit
$1.2B
Revenue
$2.2B
Cost of revenue
$979.0M
Quarter-over-quarter change
-4.0 pts
Year-over-year change
-11.1 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 |
|---|---|---|---|---|
| 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% |
| May 4, 2024 | $2.2B | $1.2B | $979.0M | 54.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Feb 3, 2024
-4.0 pts
Year-over-year change
Apr 29, 2023
-11.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin for the current quarter is lower than both the prior quarter and the year-ago quarter, driven by a proportionally smaller decline in cost of revenue relative to the decline in revenue.
Compared with the immediately preceding quarter, revenue and gross profit are lower, and gross margin has weakened. Compared with the same quarter one year earlier, revenue and gross profit are also lower, with gross margin further weakened.
Monitor whether the cost of revenue continues to decline at a slower rate than revenue in future quarters.