Applied Materials, Inc. stock research
FY2025 Q1
Applied Materials (AMAT) Gross Margin — Quarter Ended Jan 26, 2025
This quarter's revenue rose compared to both the prior quarter and the same quarter a year earlier. Gross profit increased at a faster pace than cost of revenue, resulting in an improved gross margin.
Gross margin takeaway
Quarter ended Jan 26, 2025 · FY2025 Q1
This quarter's revenue rose compared to both the prior quarter and the same quarter a year earlier. Gross profit increased at a faster pace than cost of revenue, resulting in an improved gross margin.
- The strongest observable driver of margin improvement was the relationship between revenue and cost of revenue: revenue grew sequentially while cost of revenue remained unchanged, allowing gross profit to expand more than proportionally.
- Compared to the prior quarter, gross margin improved as revenue increased while cost of revenue held steady. Versus the same quarter one year ago, both revenue and gross profit were higher, and gross margin strengthened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
48.8%
Gross profit
$3.5B
Revenue
$7.2B
Cost of revenue
$3.7B
Quarter-over-quarter change
+1.4 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 |
|---|---|---|---|---|
| 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% |
| Jan 26, 2025 | $7.2B | $3.5B | $3.7B | 48.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Oct 27, 2024
+1.4 pts
Year-over-year change
Jan 28, 2024
+1.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver of margin improvement was the relationship between revenue and cost of revenue: revenue grew sequentially while cost of revenue remained unchanged, allowing gross profit to expand more than proportionally.
Compared to the prior quarter, gross margin improved as revenue increased while cost of revenue held steady. Versus the same quarter one year ago, both revenue and gross profit were higher, and gross margin strengthened.
Monitor whether cost of revenue can remain stable relative to revenue in future periods.