Synopsys, Inc. stock research
FY2024 Q3
Synopsys (SNPS) Gross Margin — Quarter Ended Jul 31, 2024
Revenue was stable compared to the prior quarter, while gross profit increased slightly as cost of revenue decreased, resulting in an improved gross margin. Compared to the same quarter last year, revenue and gross profit were higher, but cost of revenue also increased, leaving gross margin nearly unchanged.
Gross margin takeaway
Quarter ended Jul 31, 2024 · FY2024 Q3
Revenue was stable compared to the prior quarter, while gross profit increased slightly as cost of revenue decreased, resulting in an improved gross margin. Compared to the same quarter last year, revenue and gross profit were higher, but cost of revenue also increased, leaving gross margin nearly unchanged.
- The strongest observable margin driver was the reduction in cost of revenue relative to the prior quarter, which directly supported the gross margin improvement.
- Compared to the immediately preceding quarter, gross margin improved as cost of revenue decreased while revenue held steady. Versus the same quarter one year earlier, gross margin was stable, with revenue and cost of revenue both higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
80.9%
Gross profit
$1.2B
Revenue
$1.5B
Cost of revenue
$290.7M
Quarter-over-quarter change
+1.6 pts
Year-over-year change
+0.2 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 |
|---|---|---|---|---|
| Oct 31, 2023 | $1.5B | $1.2B | $286.2M | 80.5% |
| Jan 31, 2024 | $1.5B | $1.2B | $279.2M | 81.5% |
| Apr 30, 2024 | $1.5B | $1.2B | $300.4M | 79.4% |
| Jul 31, 2024 | $1.5B | $1.2B | $290.7M | 80.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Apr 30, 2024
+1.6 pts
Year-over-year change
Jul 31, 2023
+0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver was the reduction in cost of revenue relative to the prior quarter, which directly supported the gross margin improvement.
Compared to the immediately preceding quarter, gross margin improved as cost of revenue decreased while revenue held steady. Versus the same quarter one year earlier, gross margin was stable, with revenue and cost of revenue both higher.
Monitor the trajectory of cost of revenue, as its decline drove the current quarter's margin improvement.