Seagate Technology Holdings plc stock research
FY2024 Q1
Seagate Technology Holdings (STX) Gross Margin — Quarter Ended Sep 29, 2023
Revenue decreased modestly from the prior quarter and more sharply compared with the same quarter last year, while gross profit contracted substantially in both sequential and year-ago comparisons. Cost of revenue declined slightly sequentially but was down notably from the year-ago period, leading to a weakened gross margin relative to both prior periods.
Gross margin takeaway
Quarter ended Sep 29, 2023 · FY2024 Q1
Revenue decreased modestly from the prior quarter and more sharply compared with the same quarter last year, while gross profit contracted substantially in both sequential and year-ago comparisons. Cost of revenue declined slightly sequentially but was down notably from the year-ago period, leading to a weakened gross margin relative to both prior periods.
- Gross margin weakened sequentially and year-over-year, driven by a proportionally larger decline in gross profit relative to the change in revenue. The strongest observable driver is the gross profit decrease, which outpaced the revenue decline.
- Compared with the prior quarter, revenue was lower while cost of revenue was stable, resulting in a substantially lower gross profit and gross margin. Versus the same quarter one year earlier, revenue, gross profit, and cost of revenue were all lower, with gross profit declining more sharply than revenue, further weakening gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
10.2%
Gross profit
$149.0M
Revenue
$1.5B
Cost of revenue
$1.3B
Quarter-over-quarter change
-8.7 pts
Year-over-year change
-13.4 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 |
|---|---|---|---|---|
| Mar 31, 2023 | $1.9B | $319.0M | $1.5B | 17.2% |
| Jun 30, 2023 | $1.6B | $304.0M | $1.3B | 19.0% |
| Sep 29, 2023 | $1.5B | $149.0M | $1.3B | 10.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
-8.7 pts
Year-over-year change
Sep 30, 2022
-13.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin weakened sequentially and year-over-year, driven by a proportionally larger decline in gross profit relative to the change in revenue. The strongest observable driver is the gross profit decrease, which outpaced the revenue decline.
Compared with the prior quarter, revenue was lower while cost of revenue was stable, resulting in a substantially lower gross profit and gross margin. Versus the same quarter one year earlier, revenue, gross profit, and cost of revenue were all lower, with gross profit declining more sharply than revenue, further weakening gross margin.
Monitor the trajectory of gross profit relative to revenue, as the current quarter shows gross profit contraction outpacing revenue decline across both sequential and year-ago comparisons.