Applied Materials, Inc. stock research
FY2024 Q2
Applied Materials (AMAT) Gross Margin — Quarter Ended Apr 28, 2024
In the current quarter, gross margin was higher than the same quarter last year but slightly lower than the prior quarter. Revenue was stable compared to a year ago and slightly lower sequentially, while cost of revenue remained nearly unchanged across all periods, leading to a gross profit that increased year-over-year but held steady sequentially.
Gross margin takeaway
Quarter ended Apr 28, 2024 · FY2024 Q2
In the current quarter, gross margin was higher than the same quarter last year but slightly lower than the prior quarter. Revenue was stable compared to a year ago and slightly lower sequentially, while cost of revenue remained nearly unchanged across all periods, leading to a gross profit that increased year-over-year but held steady sequentially.
- The year-over-year improvement in gross margin was the most notable change, as gross profit grew while revenue was essentially flat and cost of revenue declined slightly.
- Compared to the immediately preceding quarter, gross margin weakened marginally due to a slight decline in revenue with no corresponding reduction in cost of revenue. Compared to the same quarter one year earlier, gross margin improved as gross profit increased while cost of revenue decreased.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
47.4%
Gross profit
$3.2B
Revenue
$6.6B
Cost of revenue
$3.5B
Quarter-over-quarter change
-0.3 pts
Year-over-year change
+0.8 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 |
|---|---|---|---|---|
| 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% |
| Apr 28, 2024 | $6.6B | $3.2B | $3.5B | 47.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jan 28, 2024
-0.3 pts
Year-over-year change
Apr 30, 2023
+0.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The year-over-year improvement in gross margin was the most notable change, as gross profit grew while revenue was essentially flat and cost of revenue declined slightly.
Compared to the immediately preceding quarter, gross margin weakened marginally due to a slight decline in revenue with no corresponding reduction in cost of revenue. Compared to the same quarter one year earlier, gross margin improved as gross profit increased while cost of revenue decreased.
Monitor the trajectory of cost of revenue, which has remained relatively stable despite revenue fluctuations.