Analog Devices, Inc. stock research
FY2024 Q3
Analog Devices (ADI) Gross Margin — Quarter Ended Aug 3, 2024
Revenue and gross profit both increased compared to the prior quarter, while gross margin improved. Compared to the same quarter last year, revenue and gross profit were lower, and gross margin weakened.
Gross margin takeaway
Quarter ended Aug 3, 2024 · FY2024 Q3
Revenue and gross profit both increased compared to the prior quarter, while gross margin improved. Compared to the same quarter last year, revenue and gross profit were lower, and gross margin weakened.
- The gross margin improved sequentially as gross profit grew faster than cost of revenue. The year-over-year decline in gross margin reflects a larger proportional decrease in revenue relative to cost of revenue.
- Compared to the prior quarter, revenue and gross profit were higher, and gross margin improved. Compared to the same quarter last year, revenue, gross profit, and gross margin were all lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
56.7%
Gross profit
$1.3B
Revenue
$2.3B
Cost of revenue
$1.0B
Quarter-over-quarter change
+2.1 pts
Year-over-year change
-7.1 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 |
|---|---|---|---|---|
| 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% |
| Aug 3, 2024 | $2.3B | $1.3B | $1.0B | 56.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
May 4, 2024
+2.1 pts
Year-over-year change
Jul 29, 2023
-7.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved sequentially as gross profit grew faster than cost of revenue. The year-over-year decline in gross margin reflects a larger proportional decrease in revenue relative to cost of revenue.
Compared to the prior quarter, revenue and gross profit were higher, and gross margin improved. Compared to the same quarter last year, revenue, gross profit, and gross margin were all lower.
Monitor the trajectory of gross margin relative to revenue trends in upcoming quarters.