QUALCOMM Incorporated stock research
FY2025 Q1
QUALCOMM (QCOM) Gross Margin — Quarter Ended Dec 29, 2024
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin weakened slightly versus both comparison periods, indicating that cost growth outpaced revenue growth.
Gross margin takeaway
Quarter ended Dec 29, 2024 · FY2025 Q1
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin weakened slightly versus both comparison periods, indicating that cost growth outpaced revenue growth.
- The strongest observable margin driver is the relationship between revenue and cost of revenue: revenue grew while gross margin declined, meaning cost of revenue increased at a faster rate than revenue.
- Compared to the immediately preceding quarter, revenue and gross profit were higher, but gross margin was lower. Compared to the same quarter one year earlier, revenue and gross profit were higher, while gross margin was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
55.8%
Gross profit
$6.5B
Revenue
$11.7B
Cost of revenue
$5.2B
Quarter-over-quarter change
-0.6 pts
Year-over-year change
-0.8 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 24, 2024 | $9.4B | $5.3B | $4.1B | 56.3% |
| Jun 23, 2024 | $9.4B | $5.2B | $4.2B | 55.6% |
| Sep 29, 2024 | $10.2B | $5.8B | $4.5B | 56.4% |
| Dec 29, 2024 | $11.7B | $6.5B | $5.2B | 55.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 29, 2024
-0.6 pts
Year-over-year change
Dec 24, 2023
-0.8 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 while gross margin declined, meaning cost of revenue increased at a faster rate than revenue.
Compared to the immediately preceding quarter, revenue and gross profit were higher, but gross margin was lower. Compared to the same quarter one year earlier, revenue and gross profit were higher, while gross margin was lower.
Monitor the trajectory of cost of revenue relative to revenue, as its faster growth is compressing gross margin.