Broadcom Inc. stock research
FY2024 Q2
Broadcom (AVGO) Gross Margin — Quarter Ended May 5, 2024
Revenue, gross profit, and cost of revenue all moved higher sequentially and year-over-year. Gross margin improved from the prior quarter but weakened compared to the same quarter last year.
Gross margin takeaway
Quarter ended May 5, 2024 · FY2024 Q2
Revenue, gross profit, and cost of revenue all moved higher sequentially and year-over-year. Gross margin improved from the prior quarter but weakened compared to the same quarter last year.
- Gross margin was higher sequentially as gross profit grew faster relative to cost of revenue.
- Compared to the immediately preceding quarter, revenue and gross profit increased while gross margin improved. Compared to the same quarter one year earlier, revenue and gross profit were higher but gross margin declined.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
62.3%
Gross profit
$7.8B
Revenue
$12.5B
Cost of revenue
$4.7B
Quarter-over-quarter change
+0.6 pts
Year-over-year change
-7.7 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 30, 2023 | $8.9B | $6.2B | $2.7B | 69.4% |
| Oct 29, 2023 | $9.3B | $6.4B | $2.9B | 68.9% |
| Feb 4, 2024 | $12.0B | $7.4B | $4.6B | 61.7% |
| May 5, 2024 | $12.5B | $7.8B | $4.7B | 62.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Feb 4, 2024
+0.6 pts
Year-over-year change
Apr 30, 2023
-7.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin was higher sequentially as gross profit grew faster relative to cost of revenue.
Compared to the immediately preceding quarter, revenue and gross profit increased while gross margin improved. Compared to the same quarter one year earlier, revenue and gross profit were higher but gross margin declined.
Monitor the trajectory of cost of revenue relative to revenue to assess gross margin sustainability.