NXP Semiconductors N.V. stock research
FY2024 Q3
NXP Semiconductors N.V. (NXPI) Gross Margin — Quarter Ended Sep 29, 2024
Revenue and gross profit both increased compared to the prior quarter, while cost of revenue also rose. Gross margin improved slightly, reflecting a favorable relationship between revenue growth and cost increases.
Gross margin takeaway
Quarter ended Sep 29, 2024 · FY2024 Q3
Revenue and gross profit both increased compared to the prior quarter, while cost of revenue also rose. Gross margin improved slightly, reflecting a favorable relationship between revenue growth and cost increases.
- The strongest observable margin driver is the gross margin rate, which improved modestly from the prior quarter and the same quarter last year, indicating a stable upward trend in profitability relative to revenue.
- Compared to the immediately preceding quarter, revenue and gross profit were higher, while cost of revenue was also higher, resulting in a slightly improved gross margin. Compared to the same quarter one year earlier, revenue and gross profit were lower, but gross margin was higher, indicating a more efficient cost structure relative to current revenue levels.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
57.4%
Gross profit
$1.9B
Revenue
$3.3B
Cost of revenue
$1.4B
Quarter-over-quarter change
+0.1 pts
Year-over-year change
+0.2 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 31, 2023 | $3.4B | $1.9B | $1.5B | 56.6% |
| Mar 31, 2024 | $3.1B | $1.8B | $1.3B | 57.0% |
| Jun 30, 2024 | $3.1B | $1.8B | $1.3B | 57.3% |
| Sep 29, 2024 | $3.3B | $1.9B | $1.4B | 57.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
+0.1 pts
Year-over-year change
Oct 1, 2023
+0.2 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 rate, which improved modestly from the prior quarter and the same quarter last year, indicating a stable upward trend in profitability relative to revenue.
Compared to the immediately preceding quarter, revenue and gross profit were higher, while cost of revenue was also higher, resulting in a slightly improved gross margin. Compared to the same quarter one year earlier, revenue and gross profit were lower, but gross margin was higher, indicating a more efficient cost structure relative to current revenue levels.
Monitor the trajectory of cost of revenue relative to revenue, as the current quarter's cost increase was proportionally lower than revenue growth, supporting margin improvement.