Synopsys, Inc. stock research
FY2025 Q1
Synopsys (SNPS) Gross Margin — Quarter Ended Jan 31, 2025
Revenue and gross profit were both lower than the immediately preceding quarter but stable compared to the same quarter one year earlier. Cost of revenue decreased from the prior quarter, contributing to an improved gross margin, while the year-ago margin was nearly identical.
Gross margin takeaway
Quarter ended Jan 31, 2025 · FY2025 Q1
Revenue and gross profit were both lower than the immediately preceding quarter but stable compared to the same quarter one year earlier. Cost of revenue decreased from the prior quarter, contributing to an improved gross margin, while the year-ago margin was nearly identical.
- The strongest observable margin driver is the reduction in cost of revenue relative to the prior quarter, which outpaced the decline in revenue and lifted gross margin.
- Compared to the immediately preceding quarter, gross margin improved as cost of revenue fell more sharply than revenue. Versus the same quarter one year earlier, gross margin was essentially stable.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
81.4%
Gross profit
$1.2B
Revenue
$1.5B
Cost of revenue
$270.0M
Quarter-over-quarter change
+4.4 pts
Year-over-year change
-0.1 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 |
|---|---|---|---|---|
| Apr 30, 2024 | $1.5B | $1.2B | $300.4M | 79.4% |
| Jul 31, 2024 | $1.5B | $1.2B | $290.7M | 80.9% |
| Oct 31, 2024 | $1.6B | $1.3B | $375.0M | 77.1% |
| Jan 31, 2025 | $1.5B | $1.2B | $270.0M | 81.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Oct 31, 2024
+4.4 pts
Year-over-year change
Jan 31, 2024
-0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the reduction in cost of revenue relative to the prior quarter, which outpaced the decline in revenue and lifted gross margin.
Compared to the immediately preceding quarter, gross margin improved as cost of revenue fell more sharply than revenue. Versus the same quarter one year earlier, gross margin was essentially stable.
Monitor whether the lower cost of revenue level persists in future quarters, as it was the primary factor behind the margin improvement.