Applied Materials, Inc. stock research
FY2023 Q1
Applied Materials (AMAT) Gross Margin — Quarter Ended Jan 29, 2023
Revenue was unchanged from the prior quarter and higher than the same quarter last year. Gross profit was stable sequentially and higher year over year, while cost of revenue was flat sequentially and higher year over year, resulting in a gross margin that improved slightly from the prior quarter but was lower than the same quarter last year.
Gross margin takeaway
Quarter ended Jan 29, 2023 · FY2023 Q1
Revenue was unchanged from the prior quarter and higher than the same quarter last year. Gross profit was stable sequentially and higher year over year, while cost of revenue was flat sequentially and higher year over year, resulting in a gross margin that improved slightly from the prior quarter but was lower than the same quarter last year.
- Gross margin improved sequentially as gross profit grew at a faster pace than cost of revenue relative to the prior quarter. Compared to the same quarter last year, gross margin weakened because cost of revenue increased more than gross profit.
- Compared to the prior quarter, revenue was stable, gross profit was stable, and gross margin improved slightly. Compared to the same quarter one year earlier, revenue was higher, gross profit was higher, and gross margin was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
46.7%
Gross profit
$3.1B
Revenue
$6.7B
Cost of revenue
$3.6B
Quarter-over-quarter change
n/a
Year-over-year change
-0.5 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 |
|---|---|---|---|---|
| Jan 29, 2023 | $6.7B | $3.1B | $3.6B | 46.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Jan 30, 2022
-0.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin improved sequentially as gross profit grew at a faster pace than cost of revenue relative to the prior quarter. Compared to the same quarter last year, gross margin weakened because cost of revenue increased more than gross profit.
Compared to the prior quarter, revenue was stable, gross profit was stable, and gross margin improved slightly. Compared to the same quarter one year earlier, revenue was higher, gross profit was higher, and gross margin was lower.
Monitor the relationship between cost of revenue and revenue in upcoming quarters, as cost of revenue increased year over year while gross margin declined.