Gen Digital Inc. stock research
FY2025 Q2
Gen Digital (GEN) Gross Margin — Quarter Ended Sep 27, 2024
Revenue and gross profit increased compared to the preceding quarter and the same quarter one year earlier. Gross margin declined relative to both periods, while cost of revenue rose.
Gross margin takeaway
Quarter ended Sep 27, 2024 · FY2025 Q2
Revenue and gross profit increased compared to the preceding quarter and the same quarter one year earlier. Gross margin declined relative to both periods, while cost of revenue rose.
- The weakening of gross margin was accompanied by a faster increase in cost of revenue relative to revenue.
- Revenue, gross profit, and cost of revenue were each higher than the immediately preceding quarter and the same quarter one year earlier. Gross margin was lower than both prior periods.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
80.1%
Gross profit
$780.0M
Revenue
$974.0M
Cost of revenue
$194.0M
Quarter-over-quarter change
-0.2 pts
Year-over-year change
-0.9 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 |
|---|---|---|---|---|
| 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% |
| Sep 27, 2024 | $974.0M | $780.0M | $194.0M | 80.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 28, 2024
-0.2 pts
Year-over-year change
Sep 29, 2023
-0.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The weakening of gross margin was accompanied by a faster increase in cost of revenue relative to revenue.
Revenue, gross profit, and cost of revenue were each higher than the immediately preceding quarter and the same quarter one year earlier. Gross margin was lower than both prior periods.
Monitor the trend of cost of revenue growth relative to revenue growth, as it has widened in the current quarter.