Seagate Technology Holdings plc stock research
FY2024 Q2
Seagate Technology Holdings (STX) Gross Margin — Quarter Ended Dec 29, 2023
Revenue rose compared to the preceding quarter but fell compared to the same quarter last year. Gross profit increased and cost of revenue decreased from both periods, resulting in a significantly improved gross margin.
Gross margin takeaway
Quarter ended Dec 29, 2023 · FY2024 Q2
Revenue rose compared to the preceding quarter but fell compared to the same quarter last year. Gross profit increased and cost of revenue decreased from both periods, resulting in a significantly improved gross margin.
- The strongest observable driver was the simultaneous increase in gross profit and decrease in cost of revenue, which together lifted gross margin much higher than in either comparison period.
- Compared to the prior quarter, revenue was higher, gross profit was higher, cost of revenue was lower, and gross margin improved. Compared to the same quarter a year ago, revenue was lower, gross profit was higher, cost of revenue was lower, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
23.3%
Gross profit
$362.0M
Revenue
$1.6B
Cost of revenue
$1.2B
Quarter-over-quarter change
+13.0 pts
Year-over-year change
+10.2 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 |
|---|---|---|---|---|
| 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% |
| Dec 29, 2023 | $1.6B | $362.0M | $1.2B | 23.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 29, 2023
+13.0 pts
Year-over-year change
Dec 30, 2022
+10.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver was the simultaneous increase in gross profit and decrease in cost of revenue, which together lifted gross margin much higher than in either comparison period.
Compared to the prior quarter, revenue was higher, gross profit was higher, cost of revenue was lower, and gross margin improved. Compared to the same quarter a year ago, revenue was lower, gross profit was higher, cost of revenue was lower, and gross margin improved.
Monitor the trajectory of cost of revenue, as its decline contributed to margin expansion.