QUALCOMM Incorporated stock research
FY2025 Q2
QUALCOMM (QCOM) Gross Margin — Quarter Ended Mar 30, 2025
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, but gross margin weakened as cost of revenue grew at a faster pace.
Gross margin takeaway
Quarter ended Mar 30, 2025 · FY2025 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, but gross margin weakened as cost of revenue grew at a faster pace.
- The gross margin weakened sequentially and year-over-year, driven by a proportionally larger increase in cost of revenue relative to revenue when compared to the prior year. The strongest observable driver is the relationship between cost of revenue and revenue, as cost of revenue declined less than revenue sequentially and rose more than revenue year-over-year.
- Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all lower, and gross margin was slightly lower. Compared to the same quarter one year earlier, revenue and gross profit were higher, but gross margin was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
55.0%
Gross profit
$6.0B
Revenue
$11.0B
Cost of revenue
$4.9B
Quarter-over-quarter change
-0.7 pts
Year-over-year change
-1.2 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 |
|---|---|---|---|---|
| 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% |
| Mar 30, 2025 | $11.0B | $6.0B | $4.9B | 55.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 29, 2024
-0.7 pts
Year-over-year change
Mar 24, 2024
-1.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin weakened sequentially and year-over-year, driven by a proportionally larger increase in cost of revenue relative to revenue when compared to the prior year. The strongest observable driver is the relationship between cost of revenue and revenue, as cost of revenue declined less than revenue sequentially and rose more than revenue year-over-year.
Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all lower, and gross margin was slightly lower. Compared to the same quarter one year earlier, revenue and gross profit were higher, but gross margin was lower.
Monitor the trajectory of cost of revenue relative to revenue, as its faster growth year-over-year compressed gross margin.