QUALCOMM Incorporated stock research
FY2024 Q3
QUALCOMM (QCOM) Gross Margin — Quarter Ended Jun 23, 2024
Revenue was stable compared to the prior quarter, while gross profit and cost of revenue moved in opposite directions, resulting in a slightly lower gross margin. Compared to the same quarter one year earlier, revenue, gross profit, and cost of revenue were all higher, and gross margin improved modestly.
Gross margin takeaway
Quarter ended Jun 23, 2024 · FY2024 Q3
Revenue was stable compared to the prior quarter, while gross profit and cost of revenue moved in opposite directions, resulting in a slightly lower gross margin. Compared to the same quarter one year earlier, revenue, gross profit, and cost of revenue were all higher, and gross margin improved modestly.
- The strongest observable margin driver was the relationship between revenue and cost of revenue: revenue held steady while cost of revenue increased, which compressed gross margin relative to the prior quarter.
- Compared to the immediately preceding quarter, gross margin was lower, driven by a higher cost of revenue on flat revenue. Compared to the same quarter one year earlier, gross margin was higher, as revenue and gross profit grew more than cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
55.6%
Gross profit
$5.2B
Revenue
$9.4B
Cost of revenue
$4.2B
Quarter-over-quarter change
-0.7 pts
Year-over-year change
+0.4 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 |
|---|---|---|---|---|
| Sep 24, 2023 | $8.6B | $4.8B | $3.9B | 55.0% |
| Dec 24, 2023 | $9.9B | $5.6B | $4.3B | 56.6% |
| Mar 24, 2024 | $9.4B | $5.3B | $4.1B | 56.3% |
| Jun 23, 2024 | $9.4B | $5.2B | $4.2B | 55.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 24, 2024
-0.7 pts
Year-over-year change
Jun 25, 2023
+0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver was the relationship between revenue and cost of revenue: revenue held steady while cost of revenue increased, which compressed gross margin relative to the prior quarter.
Compared to the immediately preceding quarter, gross margin was lower, driven by a higher cost of revenue on flat revenue. Compared to the same quarter one year earlier, gross margin was higher, as revenue and gross profit grew more than cost of revenue.
Monitor the trajectory of cost of revenue relative to revenue, as a rising cost base on stable revenue could further pressure gross margin.