Texas Instruments Incorporated stock research
FY2023 Q4
Texas Instruments (TXN) Gross Margin — Quarter Ended Dec 31, 2023
Revenue, gross profit, and gross margin all declined compared to both the prior quarter and the same quarter last year, while cost of revenue remained relatively stable. The decrease in gross margin was driven by a larger drop in gross profit relative to revenue, as cost of revenue did not fall proportionally.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue, gross profit, and gross margin all declined compared to both the prior quarter and the same quarter last year, while cost of revenue remained relatively stable. The decrease in gross margin was driven by a larger drop in gross profit relative to revenue, as cost of revenue did not fall proportionally.
- Gross profit fell more sharply than revenue, compressing the gross margin even as cost of revenue held steady in absolute terms.
- Compared to the prior quarter, revenue and gross profit were lower, and gross margin weakened. Compared to the same quarter a year ago, all three metrics were also lower, with gross margin notably reduced.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
59.6%
Gross profit
$2.4B
Revenue
$4.1B
Cost of revenue
$1.6B
Quarter-over-quarter change
-2.5 pts
Year-over-year change
-6.5 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 |
|---|---|---|---|---|
| Mar 31, 2023 | $4.4B | $2.9B | $1.5B | 65.4% |
| Jun 30, 2023 | $4.5B | $2.9B | $1.6B | 64.2% |
| Sep 30, 2023 | $4.5B | $2.8B | $1.7B | 62.1% |
| Dec 31, 2023 | $4.1B | $2.4B | $1.6B | 59.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
-2.5 pts
Year-over-year change
Dec 31, 2022
-6.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit fell more sharply than revenue, compressing the gross margin even as cost of revenue held steady in absolute terms.
Compared to the prior quarter, revenue and gross profit were lower, and gross margin weakened. Compared to the same quarter a year ago, all three metrics were also lower, with gross margin notably reduced.
Monitor the trajectory of gross profit relative to revenue to assess whether margin compression stabilizes or continues.