Seagate Technology Holdings plc stock research
FY2025 Q2
Seagate Technology Holdings (STX) Gross Margin — Quarter Ended Dec 27, 2024
Revenue increased while cost of revenue remained stable compared to the prior quarter, resulting in higher gross profit and an improved gross margin. Relative to the same quarter a year ago, revenue and cost of revenue both increased, but gross profit grew at a faster pace, leading to a significantly higher gross margin.
Gross margin takeaway
Quarter ended Dec 27, 2024 · FY2025 Q2
Revenue increased while cost of revenue remained stable compared to the prior quarter, resulting in higher gross profit and an improved gross margin. Relative to the same quarter a year ago, revenue and cost of revenue both increased, but gross profit grew at a faster pace, leading to a significantly higher gross margin.
- The strongest observable margin driver is the relationship between revenue and cost of revenue, with revenue increasing faster than cost of revenue both sequentially and year-over-year.
- Compared to the prior quarter, gross margin improved as revenue increased while cost of revenue was unchanged. Compared to the same quarter last year, gross margin strengthened considerably as revenue grew at a higher rate than cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
34.9%
Gross profit
$812.0M
Revenue
$2.3B
Cost of revenue
$1.5B
Quarter-over-quarter change
+2.0 pts
Year-over-year change
+11.6 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 29, 2024 | $1.7B | $425.0M | $1.2B | 25.7% |
| Jun 28, 2024 | $1.9B | $600.0M | $1.3B | 31.8% |
| Sep 27, 2024 | $2.2B | $714.0M | $1.5B | 32.9% |
| Dec 27, 2024 | $2.3B | $812.0M | $1.5B | 34.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 27, 2024
+2.0 pts
Year-over-year change
Dec 29, 2023
+11.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between revenue and cost of revenue, with revenue increasing faster than cost of revenue both sequentially and year-over-year.
Compared to the prior quarter, gross margin improved as revenue increased while cost of revenue was unchanged. Compared to the same quarter last year, gross margin strengthened considerably as revenue grew at a higher rate than cost of revenue.
Monitor whether cost of revenue remains stable relative to revenue growth, as any increase could pressure gross margin.