Analog Devices, Inc. stock research
FY2025 Q2
Analog Devices (ADI) Gross Margin — Quarter Ended May 3, 2025
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue rose at a slower pace. Gross margin improved sequentially and year-over-year, reflecting a stronger relationship between revenue and gross profit relative to cost of revenue.
Gross margin takeaway
Quarter ended May 3, 2025 · FY2025 Q2
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue rose at a slower pace. Gross margin improved sequentially and year-over-year, reflecting a stronger relationship between revenue and gross profit relative to cost of revenue.
- The gross margin improved from the prior quarter and the year-ago quarter, driven by revenue growing faster than cost of revenue in both comparisons.
- Compared to the immediately preceding quarter, revenue and gross profit were higher, cost of revenue was slightly higher, and gross margin improved. Compared to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was higher, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
61.0%
Gross profit
$1.6B
Revenue
$2.6B
Cost of revenue
$1.0B
Quarter-over-quarter change
+2.0 pts
Year-over-year change
+6.4 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 |
|---|---|---|---|---|
| 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% |
| May 3, 2025 | $2.6B | $1.6B | $1.0B | 61.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Feb 1, 2025
+2.0 pts
Year-over-year change
May 4, 2024
+6.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved from the prior quarter and the year-ago quarter, driven by revenue growing faster than cost of revenue in both comparisons.
Compared to the immediately preceding quarter, revenue and gross profit were higher, cost of revenue was slightly higher, and gross margin improved. Compared to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was higher, and gross margin improved.
Monitor the trend in cost of revenue relative to revenue, as its slower growth contributed to margin improvement.