Teradyne, Inc. stock research
FY2024 Q3
Teradyne (TER) Gross Margin — Quarter Ended Sep 29, 2024
Revenue rose compared to both the prior quarter and the same quarter last year, while cost of revenue declined relative to the prior quarter but was nearly unchanged from a year ago. Gross profit and gross margin both improved sequentially and year-over-year, reflecting a growing share of revenue retained after cost of revenue.
Gross margin takeaway
Quarter ended Sep 29, 2024 · FY2024 Q3
Revenue rose compared to both the prior quarter and the same quarter last year, while cost of revenue declined relative to the prior quarter but was nearly unchanged from a year ago. Gross profit and gross margin both improved sequentially and year-over-year, reflecting a growing share of revenue retained after cost of revenue.
- Gross margin increased from the prior quarter and from the same quarter last year, driven by a greater increase in revenue relative to cost of revenue. The sequential margin expansion was supported by a slight reduction in cost of revenue alongside revenue growth.
- Compared to the prior quarter, revenue was higher, cost of revenue was lower, and gross profit and gross margin both improved. Versus the same quarter one year earlier, revenue, gross profit, and gross margin were all higher, while cost of revenue was relatively stable.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
59.2%
Gross profit
$436.5M
Revenue
$737.3M
Cost of revenue
$300.8M
Quarter-over-quarter change
+0.9 pts
Year-over-year change
+2.6 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 |
|---|---|---|---|---|
| Dec 31, 2023 | $670.6M | $379.5M | $291.1M | 56.6% |
| Mar 31, 2024 | $599.8M | $339.3M | $260.5M | 56.6% |
| Jun 30, 2024 | $729.9M | $425.8M | $304.0M | 58.3% |
| Sep 29, 2024 | $737.3M | $436.5M | $300.8M | 59.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
+0.9 pts
Year-over-year change
Oct 1, 2023
+2.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin increased from the prior quarter and from the same quarter last year, driven by a greater increase in revenue relative to cost of revenue. The sequential margin expansion was supported by a slight reduction in cost of revenue alongside revenue growth.
Compared to the prior quarter, revenue was higher, cost of revenue was lower, and gross profit and gross margin both improved. Versus the same quarter one year earlier, revenue, gross profit, and gross margin were all higher, while cost of revenue was relatively stable.
Monitor changes in accounts receivable, which increased due to higher sales in the current quarter, as noted in the filing.