Applied Materials, Inc. stock research
FY2024 Q3
Applied Materials (AMAT) Gross Margin — Quarter Ended Jul 28, 2024
Revenue and gross profit both rose compared to the prior quarter and the same quarter last year, while cost of revenue increased in absolute terms. Gross margin held nearly steady versus the prior quarter and improved from the year-ago level, reflecting a favorable relationship between revenue growth and cost control.
Gross margin takeaway
Quarter ended Jul 28, 2024 · FY2024 Q3
Revenue and gross profit both rose compared to the prior quarter and the same quarter last year, while cost of revenue increased in absolute terms. Gross margin held nearly steady versus the prior quarter and improved from the year-ago level, reflecting a favorable relationship between revenue growth and cost control.
- Revenue increased more than cost of revenue compared to the same quarter last year, leading to a higher gross margin. The strongest observable driver is the expansion in gross profit relative to revenue.
- Compared to the immediately preceding quarter, gross margin was essentially stable. Compared to the same quarter one year earlier, gross margin was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
47.3%
Gross profit
$3.2B
Revenue
$6.8B
Cost of revenue
$3.6B
Quarter-over-quarter change
-0.2 pts
Year-over-year change
+1.0 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 |
|---|---|---|---|---|
| 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% |
| Jul 28, 2024 | $6.8B | $3.2B | $3.6B | 47.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Apr 28, 2024
-0.2 pts
Year-over-year change
Jul 30, 2023
+1.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Revenue increased more than cost of revenue compared to the same quarter last year, leading to a higher gross margin. The strongest observable driver is the expansion in gross profit relative to revenue.
Compared to the immediately preceding quarter, gross margin was essentially stable. Compared to the same quarter one year earlier, gross margin was higher.
Monitor whether the cost of revenue continues to rise at a slower pace than revenue to sustain gross margin improvement.