Seagate Technology Holdings plc stock research
FY2024 Q3
Seagate Technology Holdings (STX) Gross Margin — Quarter Ended Mar 29, 2024
In the current quarter, revenue was higher than the prior quarter but lower than the same quarter last year. Gross profit and gross margin both improved compared to both the prior quarter and the year-ago period, as cost of revenue remained stable sequentially and declined year over year.
Gross margin takeaway
Quarter ended Mar 29, 2024 · FY2024 Q3
In the current quarter, revenue was higher than the prior quarter but lower than the same quarter last year. Gross profit and gross margin both improved compared to both the prior quarter and the year-ago period, as cost of revenue remained stable sequentially and declined year over year.
- The strongest observable driver of margin improvement was the relationship between revenue and cost of revenue. Sequentially, revenue increased while cost of revenue was unchanged, leading to a higher gross profit. Year over year, revenue declined but cost of revenue declined more, resulting in improved gross margin.
- Compared to the prior quarter, revenue and gross profit were higher, and cost of revenue was stable, leading to an improved gross margin. Compared to the same quarter last year, revenue was lower, but cost of revenue was also lower, and gross profit was higher, resulting in a significantly improved gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
25.7%
Gross profit
$425.0M
Revenue
$1.7B
Cost of revenue
$1.2B
Quarter-over-quarter change
+2.4 pts
Year-over-year change
+8.5 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 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% |
| Mar 29, 2024 | $1.7B | $425.0M | $1.2B | 25.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 29, 2023
+2.4 pts
Year-over-year change
Mar 31, 2023
+8.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver of margin improvement was the relationship between revenue and cost of revenue. Sequentially, revenue increased while cost of revenue was unchanged, leading to a higher gross profit. Year over year, revenue declined but cost of revenue declined more, resulting in improved gross margin.
Compared to the prior quarter, revenue and gross profit were higher, and cost of revenue was stable, leading to an improved gross margin. Compared to the same quarter last year, revenue was lower, but cost of revenue was also lower, and gross profit was higher, resulting in a significantly improved gross margin.
Monitor the trend in cost of revenue relative to revenue, as it has been the key factor in margin changes.