Applied Materials, Inc. stock research
FY2023 Q4
Applied Materials (AMAT) Gross Margin — Quarter Ended Oct 29, 2023
Revenue was unchanged from the same quarter one year earlier, while gross profit increased and cost of revenue remained stable, resulting in a higher gross margin. Compared to the immediately preceding quarter, revenue, gross profit, and gross margin all improved.
Gross margin takeaway
Quarter ended Oct 29, 2023 · FY2023 Q4
Revenue was unchanged from the same quarter one year earlier, while gross profit increased and cost of revenue remained stable, resulting in a higher gross margin. Compared to the immediately preceding quarter, revenue, gross profit, and gross margin all improved.
- Gross profit grew more than revenue relative to both the prior quarter and the year-ago quarter, indicating that cost of revenue did not increase proportionally. The strongest observable driver is the improvement in gross margin from the prior quarter.
- Gross margin was higher than both the immediately preceding quarter and the same quarter one year earlier. Revenue was stable year over year but higher sequentially, while cost of revenue was unchanged year over year and higher sequentially.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
47.1%
Gross profit
$3.2B
Revenue
$6.7B
Cost of revenue
$3.6B
Quarter-over-quarter change
+0.8 pts
Year-over-year change
+1.2 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% |
| Oct 29, 2023 | $6.7B | $3.2B | $3.6B | 47.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jul 30, 2023
+0.8 pts
Year-over-year change
Oct 30, 2022
+1.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit grew more than revenue relative to both the prior quarter and the year-ago quarter, indicating that cost of revenue did not increase proportionally. The strongest observable driver is the improvement in gross margin from the prior quarter.
Gross margin was higher than both the immediately preceding quarter and the same quarter one year earlier. Revenue was stable year over year but higher sequentially, while cost of revenue was unchanged year over year and higher sequentially.
Monitor whether cost of revenue continues to grow at a slower pace than revenue in future quarters.