Intel Corporation stock research
FY2024 Q2
Intel (INTC) Gross Margin — Quarter Ended Jun 29, 2024
Revenue was essentially stable while cost of revenue increased, causing gross profit to decrease and gross margin to weaken. Compared to the same quarter one year earlier, gross margin was slightly lower, driven by a similar level of cost relative to revenue.
Gross margin takeaway
Quarter ended Jun 29, 2024 · FY2024 Q2
Revenue was essentially stable while cost of revenue increased, causing gross profit to decrease and gross margin to weaken. Compared to the same quarter one year earlier, gross margin was slightly lower, driven by a similar level of cost relative to revenue.
- The increase in cost of revenue relative to revenue was the primary factor behind the gross margin decline from the prior quarter. Compared to the year-ago quarter, both revenue and cost of revenue were relatively stable, resulting in a modest gross margin change.
- Versus the preceding quarter, gross margin weakened as cost of revenue rose while revenue remained largely flat. Against the same quarter a year ago, gross margin was mixed, with both revenue and cost of revenue showing minimal movement.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
35.4%
Gross profit
$4.5B
Revenue
$12.8B
Cost of revenue
$8.3B
Quarter-over-quarter change
-5.6 pts
Year-over-year change
-0.4 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 |
|---|---|---|---|---|
| Sep 30, 2023 | $14.2B | $6.0B | $8.1B | 42.5% |
| Dec 30, 2023 | $15.4B | $7.0B | $8.4B | 45.7% |
| Mar 30, 2024 | $12.7B | $5.2B | $7.5B | 41.0% |
| Jun 29, 2024 | $12.8B | $4.5B | $8.3B | 35.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 30, 2024
-5.6 pts
Year-over-year change
Jul 1, 2023
-0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The increase in cost of revenue relative to revenue was the primary factor behind the gross margin decline from the prior quarter. Compared to the year-ago quarter, both revenue and cost of revenue were relatively stable, resulting in a modest gross margin change.
Versus the preceding quarter, gross margin weakened as cost of revenue rose while revenue remained largely flat. Against the same quarter a year ago, gross margin was mixed, with both revenue and cost of revenue showing minimal movement.
Monitor the trajectory of cost of revenue, which increased quarter over quarter despite stable revenue, as this directly pressured gross margin.