Applied Materials, Inc. stock research
FY2025 Q2
Applied Materials (AMAT) Gross Margin — Quarter Ended Apr 27, 2025
Revenue decreased from the prior quarter while gross profit held stable, resulting in a slightly higher gross margin. Compared to the same quarter last year, both revenue and gross profit were higher, and gross margin improved.
Gross margin takeaway
Quarter ended Apr 27, 2025 · FY2025 Q2
Revenue decreased from the prior quarter while gross profit held stable, resulting in a slightly higher gross margin. Compared to the same quarter last year, both revenue and gross profit were higher, and gross margin improved.
- Gross profit was essentially unchanged from the prior quarter despite lower revenue, indicating cost of revenue decreased at a faster rate than revenue. Over the year-ago period, revenue growth outpaced cost of revenue growth, supporting an improved gross margin.
- Relative to the prior quarter, gross margin modestly improved as cost of revenue declined while gross profit held steady. Compared to the same quarter a year earlier, gross margin was higher, driven by a larger increase in revenue relative to cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
49.1%
Gross profit
$3.5B
Revenue
$7.1B
Cost of revenue
$3.6B
Quarter-over-quarter change
+0.3 pts
Year-over-year change
+1.6 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 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% |
| Apr 27, 2025 | $7.1B | $3.5B | $3.6B | 49.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jan 26, 2025
+0.3 pts
Year-over-year change
Apr 28, 2024
+1.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit was essentially unchanged from the prior quarter despite lower revenue, indicating cost of revenue decreased at a faster rate than revenue. Over the year-ago period, revenue growth outpaced cost of revenue growth, supporting an improved gross margin.
Relative to the prior quarter, gross margin modestly improved as cost of revenue declined while gross profit held steady. Compared to the same quarter a year earlier, gross margin was higher, driven by a larger increase in revenue relative to cost of revenue.
Monitor the cost of revenue trend, as its decline contributed to the gross margin improvement this quarter.