QC

QUALCOMM Incorporated stock research

Mar 24, 2024

FY2024 Q2

QUALCOMM (QCOM) Gross Margin — Quarter Ended Mar 24, 2024

Revenue decreased compared to the prior quarter, while gross profit and cost of revenue also declined, resulting in a slightly lower gross margin. Versus the same quarter last year, revenue and gross profit were higher, cost of revenue was lower, and gross margin improved.

Gross margin takeaway

Quarter ended Mar 24, 2024 · FY2024 Q2

Revenue decreased compared to the prior quarter, while gross profit and cost of revenue also declined, resulting in a slightly lower gross margin. Versus the same quarter last year, revenue and gross profit were higher, cost of revenue was lower, and gross margin improved.

  • The gross margin weakened slightly from the prior quarter but strengthened compared to the same quarter last year, driven by a larger relative decline in cost of revenue versus revenue on a year-over-year basis.
  • Compared to the prior quarter, revenue, gross profit, and cost of revenue all decreased, with gross margin narrowing marginally. Compared to the same quarter last year, revenue and gross profit increased while cost of revenue decreased, leading to a higher gross margin.

Gross margin snapshot

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

Gross margin

56.3%

Gross profit

$5.3B

Revenue

$9.4B

Cost of revenue

$4.1B

Quarter-over-quarter change

-0.3 pts

Year-over-year change

+1.0 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Jun 25, 2023$8.5B$4.7B$3.8B55.1%
Sep 24, 2023$8.6B$4.8B$3.9B55.0%
Dec 24, 2023$9.9B$5.6B$4.3B56.6%
Mar 24, 2024$9.4B$5.3B$4.1B56.3%

Quarterly comparisons

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

Previous-quarter change

Dec 24, 2023

-0.3 pts

Year-over-year change

Mar 26, 2023

+1.0 pts

What the margin says

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

The gross margin weakened slightly from the prior quarter but strengthened compared to the same quarter last year, driven by a larger relative decline in cost of revenue versus revenue on a year-over-year basis.

Compared to the prior quarter, revenue, gross profit, and cost of revenue all decreased, with gross margin narrowing marginally. Compared to the same quarter last year, revenue and gross profit increased while cost of revenue decreased, leading to a higher gross margin.

Monitor the trajectory of cost of revenue relative to revenue, as its year-over-year decline contributed to margin expansion.