Intel Corporation stock research
FY2025 Q1
Intel (INTC) Gross Margin — Quarter Ended Mar 29, 2025
Revenue was unchanged compared to the same quarter one year earlier, while gross profit and gross margin both declined, indicating that cost of revenue increased. Sequentially, revenue, gross profit, and gross margin all decreased from the prior quarter.
Gross margin takeaway
Quarter ended Mar 29, 2025 · FY2025 Q1
Revenue was unchanged compared to the same quarter one year earlier, while gross profit and gross margin both declined, indicating that cost of revenue increased. Sequentially, revenue, gross profit, and gross margin all decreased from the prior quarter.
- The decline in gross margin was driven by a higher proportion of cost of revenue relative to gross profit, as cost of revenue remained elevated while gross profit contracted both sequentially and year-over-year.
- Compared to the prior quarter, revenue and gross profit were lower, and gross margin weakened from roughly two percentage points higher. Versus the same quarter last year, gross profit was lower despite flat revenue, resulting in a narrower gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
36.9%
Gross profit
$4.7B
Revenue
$12.7B
Cost of revenue
$8.0B
Quarter-over-quarter change
-2.3 pts
Year-over-year change
-4.1 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 |
|---|---|---|---|---|
| Jun 29, 2024 | $12.8B | $4.5B | $8.3B | 35.4% |
| Sep 28, 2024 | $13.3B | $2.0B | $11.3B | 15.0% |
| Dec 28, 2024 | $14.3B | $5.6B | $8.7B | 39.2% |
| Mar 29, 2025 | $12.7B | $4.7B | $8.0B | 36.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 28, 2024
-2.3 pts
Year-over-year change
Mar 30, 2024
-4.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The decline in gross margin was driven by a higher proportion of cost of revenue relative to gross profit, as cost of revenue remained elevated while gross profit contracted both sequentially and year-over-year.
Compared to the prior quarter, revenue and gross profit were lower, and gross margin weakened from roughly two percentage points higher. Versus the same quarter last year, gross profit was lower despite flat revenue, resulting in a narrower gross margin.
Monitor the trajectory of cost of revenue relative to gross profit in upcoming filings to see if the margin compression persists.