IN

Intel Corporation stock research

Dec 30, 2023

FY2023 Q4

Intel (INTC) Gross Margin — Quarter Ended Dec 30, 2023

Revenue increased compared to both the prior quarter and the same quarter last year, while cost of revenue was lower than a year ago but slightly higher than the prior quarter. Gross profit and gross margin both improved sequentially and year-over-year, reflecting a stronger relationship between revenue and cost of revenue.

Gross margin takeaway

Quarter ended Dec 30, 2023 · FY2023 Q4

Revenue increased compared to both the prior quarter and the same quarter last year, while cost of revenue was lower than a year ago but slightly higher than the prior quarter. Gross profit and gross margin both improved sequentially and year-over-year, reflecting a stronger relationship between revenue and cost of revenue.

  • The strongest observable margin driver is the improvement in gross margin relative to both the prior quarter and the year-ago quarter, supported by higher revenue and a lower cost of revenue compared to the same period last year.
  • Compared to the immediately preceding quarter, revenue, gross profit, and gross margin were all higher, while cost of revenue was slightly higher. Compared to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was lower, and gross margin improved.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

45.7%

Gross profit

$7.0B

Revenue

$15.4B

Cost of revenue

$8.4B

Quarter-over-quarter change

+3.2 pts

Year-over-year change

+6.6 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Apr 1, 2023$11.7B$4.0B$7.7B34.2%
Jul 1, 2023$12.9B$4.6B$8.3B35.8%
Sep 30, 2023$14.2B$6.0B$8.1B42.5%
Dec 30, 2023$15.4B$7.0B$8.4B45.7%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Sep 30, 2023

+3.2 pts

Year-over-year change

FY2022 Q4

+6.6 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The strongest observable margin driver is the improvement in gross margin relative to both the prior quarter and the year-ago quarter, supported by higher revenue and a lower cost of revenue compared to the same period last year.

Compared to the immediately preceding quarter, revenue, gross profit, and gross margin were all higher, while cost of revenue was slightly higher. Compared to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was lower, and gross margin improved.

Monitor the trend in cost of revenue, which increased sequentially despite a larger revenue base.