Applied Materials, Inc. stock research
FY2023 Q3
Applied Materials (AMAT) Gross Margin — Quarter Ended Jul 30, 2023
Revenue declined from both the prior quarter and the same quarter last year, while cost of revenue also decreased. Gross profit was lower sequentially but stable year-over-year, resulting in a gross margin that weakened slightly from the previous quarter but improved compared to the prior year.
Gross margin takeaway
Quarter ended Jul 30, 2023 · FY2023 Q3
Revenue declined from both the prior quarter and the same quarter last year, while cost of revenue also decreased. Gross profit was lower sequentially but stable year-over-year, resulting in a gross margin that weakened slightly from the previous quarter but improved compared to the prior year.
- The comparison with the year-ago quarter shows gross margin strengthening even with a lower gross profit, indicating that the cost of revenue declined more than revenue, which supported margin expansion.
- Versus the preceding quarter, gross margin weakened as revenue fell faster than cost of revenue. Compared to the same quarter one year earlier, gross margin improved, driven by a more favorable relationship between revenue and cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
46.3%
Gross profit
$3.0B
Revenue
$6.4B
Cost of revenue
$3.4B
Quarter-over-quarter change
-0.3 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% |
| Jul 30, 2023 | $6.4B | $3.0B | $3.4B | 46.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Apr 30, 2023
-0.3 pts
Year-over-year change
Jul 31, 2022
+0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The comparison with the year-ago quarter shows gross margin strengthening even with a lower gross profit, indicating that the cost of revenue declined more than revenue, which supported margin expansion.
Versus the preceding quarter, gross margin weakened as revenue fell faster than cost of revenue. Compared to the same quarter one year earlier, gross margin improved, driven by a more favorable relationship between revenue and cost of revenue.
Monitor whether the company can sustain the year-over-year gross margin improvement if revenue continues to decline.