Applied Materials, Inc. stock research
FY2025 Q3
Applied Materials (AMAT) Gross Margin — Quarter Ended Jul 27, 2025
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin weakened slightly from the prior quarter but improved compared to the same quarter last year.
Gross margin takeaway
Quarter ended Jul 27, 2025 · FY2025 Q3
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin weakened slightly from the prior quarter but improved compared to the same quarter last year.
- The relationship among revenue, cost of revenue, and gross profit shows that revenue grew faster than cost of revenue compared to the same quarter last year, supporting gross margin improvement. Compared to the prior quarter, cost of revenue grew at a slightly faster pace than revenue, leading to a marginal gross margin decline.
- Compared to the prior quarter, revenue and gross profit were higher, while gross margin was slightly lower. Compared to the same quarter last year, revenue, gross profit, and gross margin were all higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
48.8%
Gross profit
$3.6B
Revenue
$7.3B
Cost of revenue
$3.7B
Quarter-over-quarter change
-0.3 pts
Year-over-year change
+1.5 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 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% |
| Jul 27, 2025 | $7.3B | $3.6B | $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
Apr 27, 2025
-0.3 pts
Year-over-year change
Jul 28, 2024
+1.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The relationship among revenue, cost of revenue, and gross profit shows that revenue grew faster than cost of revenue compared to the same quarter last year, supporting gross margin improvement. Compared to the prior quarter, cost of revenue grew at a slightly faster pace than revenue, leading to a marginal gross margin decline.
Compared to the prior quarter, revenue and gross profit were higher, while gross margin was slightly lower. Compared to the same quarter last year, revenue, gross profit, and gross margin were all higher.
Monitor the trajectory of cost of revenue relative to revenue, as its growth rate influenced the gross margin change from the prior quarter.