IN

Intel Corporation stock research

Dec 28, 2024

FY2024 Q4

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

Revenue increased compared to the prior quarter, while cost of revenue decreased, resulting in a significantly higher gross profit and an improved gross margin. Versus the same quarter last year, revenue was lower and cost of revenue was slightly higher, leading to a lower gross profit and a weakened gross margin.

Gross margin takeaway

Quarter ended Dec 28, 2024 · FY2024 Q4

Revenue increased compared to the prior quarter, while cost of revenue decreased, resulting in a significantly higher gross profit and an improved gross margin. Versus the same quarter last year, revenue was lower and cost of revenue was slightly higher, leading to a lower gross profit and a weakened gross margin.

  • The most observable driver of the gross margin improvement from the prior quarter is the combination of higher revenue and lower cost of revenue, which together produced a substantially larger gross profit.
  • Compared to the immediately preceding quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin weakened.

Gross margin snapshot

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

Gross margin

39.2%

Gross profit

$5.6B

Revenue

$14.3B

Cost of revenue

$8.7B

Quarter-over-quarter change

+24.1 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
Mar 30, 2024$12.7B$5.2B$7.5B41.0%
Jun 29, 2024$12.8B$4.5B$8.3B35.4%
Sep 28, 2024$13.3B$2.0B$11.3B15.0%
Dec 28, 2024$14.3B$5.6B$8.7B39.2%

Quarterly comparisons

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

Previous-quarter change

Sep 28, 2024

+24.1 pts

Year-over-year change

Dec 30, 2023

-6.6 pts

What the margin says

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

The most observable driver of the gross margin improvement from the prior quarter is the combination of higher revenue and lower cost of revenue, which together produced a substantially larger gross profit.

Compared to the immediately preceding quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin weakened.

Monitor the trajectory of cost of revenue relative to revenue, as the current quarter's improvement was driven by a reduction in cost of revenue despite a year-over-year increase.