Applied Materials, Inc. stock research
FY2023 Q2
Applied Materials (AMAT) Gross Margin — Quarter Ended Apr 30, 2023
Revenue decreased slightly from the prior quarter while cost of revenue declined at a similar pace, leaving gross profit and gross margin essentially unchanged. Compared with the same quarter one year earlier, revenue and gross profit were higher, but gross margin weakened modestly as cost of revenue grew at a faster rate than revenue.
Gross margin takeaway
Quarter ended Apr 30, 2023 · FY2023 Q2
Revenue decreased slightly from the prior quarter while cost of revenue declined at a similar pace, leaving gross profit and gross margin essentially unchanged. Compared with the same quarter one year earlier, revenue and gross profit were higher, but gross margin weakened modestly as cost of revenue grew at a faster rate than revenue.
- The gross margin remained stable sequentially, indicating that the relationship between revenue and cost of revenue held steady. The year-over-year decline in gross margin, despite higher revenue and gross profit, points to cost of revenue increasing more than proportionally.
- Compared to the prior quarter, revenue was slightly lower, cost of revenue was lower, and gross profit and gross margin were essentially unchanged. Compared to the same quarter last year, revenue and gross profit were higher, while gross margin was slightly 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
$6.6B
Cost of revenue
$3.5B
Quarter-over-quarter change
-0.0 pts
Year-over-year change
-0.2 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% |
| Apr 30, 2023 | $6.6B | $3.1B | $3.5B | 46.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jan 29, 2023
-0.0 pts
Year-over-year change
May 1, 2022
-0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin remained stable sequentially, indicating that the relationship between revenue and cost of revenue held steady. The year-over-year decline in gross margin, despite higher revenue and gross profit, points to cost of revenue increasing more than proportionally.
Compared to the prior quarter, revenue was slightly lower, cost of revenue was lower, and gross profit and gross margin were essentially unchanged. Compared to the same quarter last year, revenue and gross profit were higher, while gross margin was slightly lower.
Monitor the trajectory of cost of revenue relative to revenue, as the year-over-year compression in gross margin suggests cost growth may be outpacing revenue growth.