Applied Materials, Inc. stock research
FY2024 Q1
Applied Materials (AMAT) Gross Margin — Quarter Ended Jan 28, 2024
Revenue was stable compared to both the prior quarter and the same quarter last year. Gross profit increased and gross margin improved, driven by a lower cost of revenue relative to revenue.
Gross margin takeaway
Quarter ended Jan 28, 2024 · FY2024 Q1
Revenue was stable compared to both the prior quarter and the same quarter last year. Gross profit increased and gross margin improved, driven by a lower cost of revenue relative to revenue.
- The strongest observable driver was the reduction in cost of revenue while revenue held steady, which directly lifted gross profit and gross margin.
- Compared to the immediately preceding quarter, gross margin improved; compared to the same quarter one year earlier, gross margin also improved. Revenue was essentially unchanged in both comparisons.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
47.8%
Gross profit
$3.2B
Revenue
$6.7B
Cost of revenue
$3.5B
Quarter-over-quarter change
+0.6 pts
Year-over-year change
+1.1 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 |
|---|---|---|---|---|
| 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% |
| Jan 28, 2024 | $6.7B | $3.2B | $3.5B | 47.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Oct 29, 2023
+0.6 pts
Year-over-year change
Jan 29, 2023
+1.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver was the reduction in cost of revenue while revenue held steady, which directly lifted gross profit and gross margin.
Compared to the immediately preceding quarter, gross margin improved; compared to the same quarter one year earlier, gross margin also improved. Revenue was essentially unchanged in both comparisons.
Monitor the trajectory of cost of revenue relative to revenue, as it was the primary factor behind the margin improvement.