Keysight Technologies, Inc. stock research
FY2025 Q1
Keysight Technologies (KEYS) Gross Margin — Quarter Ended Jan 31, 2025
Revenue was stable compared to the prior quarter and the same quarter last year. Gross profit improved sequentially, while cost of revenue decreased, leading to a higher gross margin; however, gross margin weakened relative to the same quarter a year ago, as cost of revenue increased more than revenue.
Gross margin takeaway
Quarter ended Jan 31, 2025 · FY2025 Q1
Revenue was stable compared to the prior quarter and the same quarter last year. Gross profit improved sequentially, while cost of revenue decreased, leading to a higher gross margin; however, gross margin weakened relative to the same quarter a year ago, as cost of revenue increased more than revenue.
- The strongest observable margin driver is the sequential improvement in gross margin, supported by a lower cost of revenue relative to revenue. This contrasts with the year-ago comparison, where higher cost of revenue compressed margin.
- Compared to the immediately preceding quarter, gross margin improved as gross profit rose while cost of revenue fell. Compared to the same quarter one year earlier, gross margin weakened because cost of revenue increased at a faster pace than revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
63.2%
Gross profit
$820.0M
Revenue
$1.3B
Cost of revenue
$478.0M
Quarter-over-quarter change
+0.9 pts
Year-over-year change
-1.4 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 |
|---|---|---|---|---|
| Apr 30, 2024 | $1.2B | $763.0M | $453.0M | 62.7% |
| Jul 31, 2024 | $1.2B | $755.0M | $462.0M | 62.0% |
| Oct 31, 2024 | $1.3B | $802.0M | $485.0M | 62.3% |
| Jan 31, 2025 | $1.3B | $820.0M | $478.0M | 63.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Oct 31, 2024
+0.9 pts
Year-over-year change
Jan 31, 2024
-1.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the sequential improvement in gross margin, supported by a lower cost of revenue relative to revenue. This contrasts with the year-ago comparison, where higher cost of revenue compressed margin.
Compared to the immediately preceding quarter, gross margin improved as gross profit rose while cost of revenue fell. Compared to the same quarter one year earlier, gross margin weakened because cost of revenue increased at a faster pace than revenue.
Monitor the trajectory of cost of revenue relative to revenue, as its increase year-over-year was the primary factor behind the margin decline.