Applied Materials, Inc. stock research
FY2024 Q4
Applied Materials (AMAT) Gross Margin — Quarter Ended Oct 27, 2024
Revenue, gross profit, and cost of revenue all increased from the prior quarter and the year-ago quarter. The gross margin remained unchanged from the prior quarter and was slightly higher than the same quarter a year earlier.
Gross margin takeaway
Quarter ended Oct 27, 2024 · FY2024 Q4
Revenue, gross profit, and cost of revenue all increased from the prior quarter and the year-ago quarter. The gross margin remained unchanged from the prior quarter and was slightly higher than the same quarter a year earlier.
- The gross margin was maintained sequentially and improved year-over-year, as gross profit increased at a pace comparable to revenue growth.
- Compared to the prior quarter, revenue and gross profit were higher, while cost of revenue also increased; gross margin was flat. Compared to the same quarter last year, revenue, gross profit, and cost of revenue were all higher, and gross margin improved modestly.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
47.3%
Gross profit
$3.3B
Revenue
$7.0B
Cost of revenue
$3.7B
Quarter-over-quarter change
+0.1 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 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% |
| Oct 27, 2024 | $7.0B | $3.3B | $3.7B | 47.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jul 28, 2024
+0.1 pts
Year-over-year change
Oct 29, 2023
+0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin was maintained sequentially and improved year-over-year, as gross profit increased at a pace comparable to revenue growth.
Compared to the prior quarter, revenue and gross profit were higher, while cost of revenue also increased; gross margin was flat. Compared to the same quarter last year, revenue, gross profit, and cost of revenue were all higher, and gross margin improved modestly.
Monitor the relationship between cost of revenue and revenue growth, as gross margin stability depends on their proportional changes.