Broadcom Inc. stock research
FY2025 Q1
Broadcom (AVGO) Gross Margin — Quarter Ended Feb 2, 2025
Revenue grew while cost of revenue declined, producing a larger gross profit and a higher gross margin. The gross margin improvement reflected gross profit rising faster than revenue, with the cost of revenue ratio to sales decreasing.
Gross margin takeaway
Quarter ended Feb 2, 2025 · FY2025 Q1
Revenue grew while cost of revenue declined, producing a larger gross profit and a higher gross margin. The gross margin improvement reflected gross profit rising faster than revenue, with the cost of revenue ratio to sales decreasing.
- The decrease in cost of revenue combined with higher revenue was the strongest observable driver of the gross margin expansion.
- Compared to the prior quarter, gross margin improved as revenue increased and cost of revenue decreased. Versus the same quarter one year earlier, revenue and gross profit were higher, and gross margin was also higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
68.0%
Gross profit
$10.1B
Revenue
$14.9B
Cost of revenue
$4.8B
Quarter-over-quarter change
+4.0 pts
Year-over-year change
+6.4 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 |
|---|---|---|---|---|
| May 5, 2024 | $12.5B | $7.8B | $4.7B | 62.3% |
| Aug 4, 2024 | $13.1B | $8.4B | $4.7B | 63.9% |
| Nov 3, 2024 | $14.1B | $9.0B | $5.1B | 64.1% |
| Feb 2, 2025 | $14.9B | $10.1B | $4.8B | 68.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Nov 3, 2024
+4.0 pts
Year-over-year change
Feb 4, 2024
+6.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The decrease in cost of revenue combined with higher revenue was the strongest observable driver of the gross margin expansion.
Compared to the prior quarter, gross margin improved as revenue increased and cost of revenue decreased. Versus the same quarter one year earlier, revenue and gross profit were higher, and gross margin was also higher.
Monitor the trend in cost of revenue, as its decline contributed materially to the margin improvement.