Intel (INTC) Gross Margin — Quarter Ended Sep 28, 2024

Revenue increased from the prior quarter, but gross profit decreased significantly, leading to a substantial decline in gross margin. Compared to the same period last year, both revenue and gross profit were lower, and gross margin contracted sharply.

Gross margin takeaway

Quarter ended Sep 28, 2024 · FY2024 Q3

Cost of revenue rose while revenue grew modestly, causing gross profit to fall and gross margin to weaken.
Gross margin weakened substantially from the immediately preceding quarter and from the same quarter one year earlier.

Gross margin snapshot

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

Gross margin

15.0%

Gross profit

$2.0B

Revenue

$13.3B

Cost of revenue

$11.3B

Quarter-over-quarter change

-20.4 pts

Year-over-year change

-27.5 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 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%
Sep 28, 2024	$13.3B	$2.0B	$11.3B	15.0%

Quarterly comparisons

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

Previous-quarter change

Jun 29, 2024

-20.4 pts

Year-over-year change

Sep 30, 2023

-27.5 pts

What the margin says

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

Cost of revenue rose while revenue grew modestly, causing gross profit to fall and gross margin to weaken.

Gross margin weakened substantially from the immediately preceding quarter and from the same quarter one year earlier.

Monitor the trajectory of cost of revenue relative to revenue going forward.