Seagate Technology Holdings plc stock research
FY2024 Q4
Seagate Technology Holdings (STX) Gross Margin — Quarter Ended Jun 28, 2024
Revenue, gross profit, and gross margin all improved compared to both the preceding quarter and the same quarter last year. The cost of revenue was higher than the previous quarter but lower than the year-ago period, resulting in a stronger gross margin.
Gross margin takeaway
Quarter ended Jun 28, 2024 · FY2024 Q4
Revenue, gross profit, and gross margin all improved compared to both the preceding quarter and the same quarter last year. The cost of revenue was higher than the previous quarter but lower than the year-ago period, resulting in a stronger gross margin.
- The strongest observable margin driver is the increase in gross profit relative to revenue, as gross profit growth outpaced revenue growth compared to the prior quarter. This indicates improved conversion of revenue into gross profit.
- Compared to the immediately preceding quarter, revenue and gross profit were higher, while the gross margin improved. Compared to the same quarter one year earlier, revenue, gross profit, and gross margin were all higher, and cost of revenue was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
31.8%
Gross profit
$600.0M
Revenue
$1.9B
Cost of revenue
$1.3B
Quarter-over-quarter change
+6.1 pts
Year-over-year change
+12.8 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 |
|---|---|---|---|---|
| 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% |
| Jun 28, 2024 | $1.9B | $600.0M | $1.3B | 31.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 29, 2024
+6.1 pts
Year-over-year change
Jun 30, 2023
+12.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the increase in gross profit relative to revenue, as gross profit growth outpaced revenue growth compared to the prior quarter. This indicates improved conversion of revenue into gross profit.
Compared to the immediately preceding quarter, revenue and gross profit were higher, while the gross margin improved. Compared to the same quarter one year earlier, revenue, gross profit, and gross margin were all higher, and cost of revenue was lower.
Monitor the trend in cost of revenue, as its level relative to revenue directly influences gross margin stability.