Keysight Technologies, Inc. stock research
FY2024 Q1
Keysight Technologies (KEYS) Gross Margin — Quarter Ended Jan 31, 2024
Revenue was lower than the same quarter one year earlier, while gross profit and cost of revenue also declined. Gross margin improved compared to both the immediately preceding quarter and the year-ago quarter, indicating that the relationship among these metrics shifted favorably.
Gross margin takeaway
Quarter ended Jan 31, 2024 · FY2024 Q1
Revenue was lower than the same quarter one year earlier, while gross profit and cost of revenue also declined. Gross margin improved compared to both the immediately preceding quarter and the year-ago quarter, indicating that the relationship among these metrics shifted favorably.
- The strongest observable margin driver is the gross margin percentage, which improved sequentially and year-over-year despite lower revenue. This suggests that cost of revenue declined at a faster rate than revenue.
- Compared to the immediately preceding quarter, revenue was stable, gross profit was lower, and cost of revenue was lower, resulting in a slightly higher gross margin. Compared to the same quarter one year earlier, revenue, gross profit, and cost of revenue were all lower, yet gross margin was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
64.6%
Gross profit
$813.0M
Revenue
$1.3B
Cost of revenue
$446.0M
Quarter-over-quarter change
+0.2 pts
Year-over-year change
+0.6 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 |
|---|---|---|---|---|
| Apr 30, 2023 | $1.4B | $909.0M | $481.0M | 65.4% |
| Jul 31, 2023 | $1.4B | $896.0M | $486.0M | 64.8% |
| Oct 31, 2023 | $1.3B | $844.0M | $467.0M | 64.4% |
| Jan 31, 2024 | $1.3B | $813.0M | $446.0M | 64.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Oct 31, 2023
+0.2 pts
Year-over-year change
Jan 31, 2023
+0.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the gross margin percentage, which improved sequentially and year-over-year despite lower revenue. This suggests that cost of revenue declined at a faster rate than revenue.
Compared to the immediately preceding quarter, revenue was stable, gross profit was lower, and cost of revenue was lower, resulting in a slightly higher gross margin. Compared to the same quarter one year earlier, revenue, gross profit, and cost of revenue were all lower, yet gross margin was higher.
Monitor the trajectory of cost of revenue relative to revenue, as its faster decline has been the primary factor supporting gross margin improvement.