QUALCOMM Incorporated stock research
FY2024 Q1
QUALCOMM (QCOM) Gross Margin — Quarter Ended Dec 24, 2023
Revenue and gross profit both increased compared to the prior quarter, while cost of revenue also rose. Gross margin improved slightly from the prior quarter but weakened relative to the same quarter one year earlier.
Gross margin takeaway
Quarter ended Dec 24, 2023 · FY2024 Q1
Revenue and gross profit both increased compared to the prior quarter, while cost of revenue also rose. Gross margin improved slightly from the prior quarter but weakened relative to the same quarter one year earlier.
- The strongest observable margin driver is the relationship between revenue and cost of revenue: revenue grew faster than cost of revenue compared to the prior quarter, leading to a higher gross margin. Compared to the year-ago quarter, cost of revenue increased at a faster pace relative to revenue, resulting in a lower gross margin.
- Compared to the prior quarter, gross margin improved as revenue growth outpaced cost of revenue growth. Compared to the same quarter one year earlier, gross margin weakened as cost of revenue increased more than revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
56.6%
Gross profit
$5.6B
Revenue
$9.9B
Cost of revenue
$4.3B
Quarter-over-quarter change
+1.6 pts
Year-over-year change
-0.7 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 |
|---|---|---|---|---|
| Mar 26, 2023 | $9.3B | $5.1B | $4.2B | 55.2% |
| Jun 25, 2023 | $8.5B | $4.7B | $3.8B | 55.1% |
| Sep 24, 2023 | $8.6B | $4.8B | $3.9B | 55.0% |
| Dec 24, 2023 | $9.9B | $5.6B | $4.3B | 56.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 24, 2023
+1.6 pts
Year-over-year change
Dec 25, 2022
-0.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between revenue and cost of revenue: revenue grew faster than cost of revenue compared to the prior quarter, leading to a higher gross margin. Compared to the year-ago quarter, cost of revenue increased at a faster pace relative to revenue, resulting in a lower gross margin.
Compared to the prior quarter, gross margin improved as revenue growth outpaced cost of revenue growth. Compared to the same quarter one year earlier, gross margin weakened as cost of revenue increased more than revenue.
Monitor the trend in cost of revenue relative to revenue, as its faster growth compared to the year-ago quarter contributed to the gross margin decline.