Analog Devices, Inc. stock research
FY2024 Q4
Analog Devices (ADI) Gross Margin — Quarter Ended Nov 2, 2024
In the current quarter, revenue and gross profit both increased compared to the prior quarter, while cost of revenue remained unchanged, resulting in an improved gross margin. Relative to the same quarter last year, revenue, gross profit, and gross margin were all lower, with cost of revenue also lower.
Gross margin takeaway
Quarter ended Nov 2, 2024 · FY2024 Q4
In the current quarter, revenue and gross profit both increased compared to the prior quarter, while cost of revenue remained unchanged, resulting in an improved gross margin. Relative to the same quarter last year, revenue, gross profit, and gross margin were all lower, with cost of revenue also lower.
- The sequential improvement in gross margin was driven by revenue growth while cost of revenue stayed flat, allowing a larger portion of revenue to flow through to gross profit.
- Compared to the prior quarter, gross margin improved as revenue increased and cost of revenue was stable. Versus the same quarter last year, gross margin weakened as revenue and gross profit declined more than cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
58.0%
Gross profit
$1.4B
Revenue
$2.4B
Cost of revenue
$1.0B
Quarter-over-quarter change
+1.3 pts
Year-over-year change
-2.7 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 |
|---|---|---|---|---|
| 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% |
| Nov 2, 2024 | $2.4B | $1.4B | $1.0B | 58.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Aug 3, 2024
+1.3 pts
Year-over-year change
Oct 28, 2023
-2.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential improvement in gross margin was driven by revenue growth while cost of revenue stayed flat, allowing a larger portion of revenue to flow through to gross profit.
Compared to the prior quarter, gross margin improved as revenue increased and cost of revenue was stable. Versus the same quarter last year, gross margin weakened as revenue and gross profit declined more than cost of revenue.
Monitor the relationship between cost of revenue and revenue, as cost stability was key to the sequential margin improvement.