Analog Devices, Inc. stock research
FY2025 Q1
Analog Devices (ADI) Gross Margin — Quarter Ended Feb 1, 2025
Revenue was stable compared to the prior quarter, while gross profit and cost of revenue were also broadly unchanged, leading to a slight improvement in gross margin. Versus the same quarter last year, revenue and gross profit were lower, cost of revenue was slightly lower, and gross margin was marginally higher.
Gross margin takeaway
Quarter ended Feb 1, 2025 · FY2025 Q1
Revenue was stable compared to the prior quarter, while gross profit and cost of revenue were also broadly unchanged, leading to a slight improvement in gross margin. Versus the same quarter last year, revenue and gross profit were lower, cost of revenue was slightly lower, and gross margin was marginally higher.
- The gross margin improved sequentially and year-over-year, driven by a slightly lower cost of revenue relative to revenue. The strongest observable driver is the reduction in cost of revenue as a proportion of revenue.
- Compared to the immediately preceding quarter, gross margin strengthened slightly. Compared to the same quarter one year earlier, gross margin also improved modestly.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
59.0%
Gross profit
$1.4B
Revenue
$2.4B
Cost of revenue
$992.9M
Quarter-over-quarter change
+1.1 pts
Year-over-year change
+0.4 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 |
|---|---|---|---|---|
| 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% |
| Feb 1, 2025 | $2.4B | $1.4B | $992.9M | 59.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Nov 2, 2024
+1.1 pts
Year-over-year change
Feb 3, 2024
+0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved sequentially and year-over-year, driven by a slightly lower cost of revenue relative to revenue. The strongest observable driver is the reduction in cost of revenue as a proportion of revenue.
Compared to the immediately preceding quarter, gross margin strengthened slightly. Compared to the same quarter one year earlier, gross margin also improved modestly.
Monitor whether the cost of revenue continues to decline relative to revenue in future quarters.