Skyworks Solutions, Inc. stock research
FY2025 Q1
Skyworks Solutions (SWKS) Gross Margin — Quarter Ended Dec 27, 2024
Revenue decreased compared to both the prior quarter and the same quarter last year, while cost of revenue declined less proportionally, resulting in a lower gross profit and a weakened gross margin. The gross margin contracted sequentially and year-over-year, reflecting that cost of revenue absorbed a larger share of revenue.
Gross margin takeaway
Quarter ended Dec 27, 2024 · FY2025 Q1
Revenue decreased compared to both the prior quarter and the same quarter last year, while cost of revenue declined less proportionally, resulting in a lower gross profit and a weakened gross margin. The gross margin contracted sequentially and year-over-year, reflecting that cost of revenue absorbed a larger share of revenue.
- The gross margin weakened from the prior quarter and the year-ago quarter, driven by a decline in gross profit relative to revenue. The strongest observable driver is the relationship between revenue and cost of revenue, where revenue fell while cost of revenue did not decline at the same rate.
- Compared to the immediately preceding quarter, revenue was higher, gross profit was higher, and cost of revenue was higher, but gross margin was lower. Compared to the same quarter one year earlier, revenue was lower, gross profit was lower, and cost of revenue was lower, yet gross margin was also lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
41.4%
Gross profit
$441.9M
Revenue
$1.1B
Cost of revenue
$626.6M
Quarter-over-quarter change
-0.6 pts
Year-over-year change
-0.8 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 |
|---|---|---|---|---|
| Mar 29, 2024 | $1.0B | $420.3M | $625.7M | 40.2% |
| Jun 28, 2024 | $905.5M | $364.1M | $541.4M | 40.2% |
| Sep 27, 2024 | $1.0B | $429.8M | $595.2M | 41.9% |
| Dec 27, 2024 | $1.1B | $441.9M | $626.6M | 41.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 27, 2024
-0.6 pts
Year-over-year change
Dec 29, 2023
-0.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin weakened from the prior quarter and the year-ago quarter, driven by a decline in gross profit relative to revenue. The strongest observable driver is the relationship between revenue and cost of revenue, where revenue fell while cost of revenue did not decline at the same rate.
Compared to the immediately preceding quarter, revenue was higher, gross profit was higher, and cost of revenue was higher, but gross margin was lower. Compared to the same quarter one year earlier, revenue was lower, gross profit was lower, and cost of revenue was lower, yet gross margin was also lower.
Monitor the trajectory of cost of revenue relative to revenue, as its slower decline has compressed gross margin in both comparisons.