QC

QUALCOMM Incorporated stock research

Sep 24, 2023

FY2023 Q4

QUALCOMM (QCOM) Gross Margin — Quarter Ended Sep 24, 2023

Revenue and gross profit were both higher than the immediately preceding quarter, while cost of revenue also increased. Gross margin weakened slightly compared to the prior quarter and was lower than the same quarter one year earlier.

Gross margin takeaway

Quarter ended Sep 24, 2023 · FY2023 Q4

Revenue and gross profit were both higher than the immediately preceding quarter, while cost of revenue also increased. Gross margin weakened slightly compared to the prior quarter and was lower than the same quarter one year earlier.

  • The relationship among revenue, gross profit, and cost of revenue shows that gross profit increased at a slower pace than revenue, leading to a marginally lower gross margin. The strongest observable driver is the relative change in cost of revenue compared to revenue.
  • Compared to the immediately preceding quarter, revenue and gross profit were higher, but gross margin was slightly lower. Versus the same quarter one year earlier, revenue, gross profit, and gross margin were all lower.

Gross margin snapshot

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

Gross margin

55.0%

Gross profit

$4.8B

Revenue

$8.6B

Cost of revenue

$3.9B

Quarter-over-quarter change

-0.1 pts

Year-over-year change

-2.2 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 26, 2023$9.3B$5.1B$4.2B55.2%
Jun 25, 2023$8.5B$4.7B$3.8B55.1%
Sep 24, 2023$8.6B$4.8B$3.9B55.0%

Quarterly comparisons

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

Previous-quarter change

Jun 25, 2023

-0.1 pts

Year-over-year change

Sep 25, 2022

-2.2 pts

What the margin says

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

The relationship among revenue, gross profit, and cost of revenue shows that gross profit increased at a slower pace than revenue, leading to a marginally lower gross margin. The strongest observable driver is the relative change in cost of revenue compared to revenue.

Compared to the immediately preceding quarter, revenue and gross profit were higher, but gross margin was slightly lower. Versus the same quarter one year earlier, revenue, gross profit, and gross margin were all lower.

Monitor the trajectory of cost of revenue relative to revenue, as it outpaced revenue growth sequentially and contributed to the margin decline.