Gen Digital Inc. stock research
FY2025 Q1
Gen Digital (GEN) Gross Margin — Quarter Ended Jun 28, 2024
Revenue, gross profit, and cost of revenue all increased compared to the same quarter one year earlier, but gross margin weakened as the proportion of cost relative to revenue rose. Sequentially, all three metrics were nearly flat and gross margin remained stable.
Gross margin takeaway
Quarter ended Jun 28, 2024 · FY2025 Q1
Revenue, gross profit, and cost of revenue all increased compared to the same quarter one year earlier, but gross margin weakened as the proportion of cost relative to revenue rose. Sequentially, all three metrics were nearly flat and gross margin remained stable.
- Gross margin declined year-over-year while remaining flat sequentially, indicating that the relationship between revenue and cost of revenue shifted unfavorably on an annual basis, with cost growing more closely in line with revenue.
- Compared to the prior quarter, revenue, gross profit, and cost of revenue were essentially unchanged, resulting in an identical gross margin. Versus the same quarter last year, gross profit grew more slowly than revenue as cost increased, leading to a lower gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
80.3%
Gross profit
$775.0M
Revenue
$965.0M
Cost of revenue
$190.0M
Quarter-over-quarter change
+0.0 pts
Year-over-year change
-0.7 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 |
|---|---|---|---|---|
| Sep 29, 2023 | $945.0M | $765.0M | $180.0M | 81.0% |
| Dec 29, 2023 | $948.0M | $766.0M | $182.0M | 80.8% |
| Mar 29, 2024 | $964.0M | $774.0M | $190.0M | 80.3% |
| Jun 28, 2024 | $965.0M | $775.0M | $190.0M | 80.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 29, 2024
+0.0 pts
Year-over-year change
Jun 30, 2023
-0.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin declined year-over-year while remaining flat sequentially, indicating that the relationship between revenue and cost of revenue shifted unfavorably on an annual basis, with cost growing more closely in line with revenue.
Compared to the prior quarter, revenue, gross profit, and cost of revenue were essentially unchanged, resulting in an identical gross margin. Versus the same quarter last year, gross profit grew more slowly than revenue as cost increased, leading to a lower gross margin.
Monitor the trend of gross margin in upcoming quarters, especially whether cost growth continues to narrow the gap with revenue growth.