Texas Instruments Incorporated stock research
FY2024 Q1
Texas Instruments (TXN) Gross Margin — Quarter Ended Mar 31, 2024
Revenue and gross profit both decreased compared to the prior quarter and the same quarter one year ago. Cost of revenue was stable versus the prior quarter but slightly higher than a year ago, leading to gross margin that weakened from both periods.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue and gross profit both decreased compared to the prior quarter and the same quarter one year ago. Cost of revenue was stable versus the prior quarter but slightly higher than a year ago, leading to gross margin that weakened from both periods.
- The decline in gross profit outpaced the decline in revenue, indicating that cost of revenue did not fall proportionally. This relationship was the strongest observable driver of margin compression.
- Compared to the immediately preceding quarter, revenue and gross profit were lower while gross margin weakened. Versus the same quarter one year earlier, all three metrics—revenue, gross profit, and gross margin—were lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
57.2%
Gross profit
$2.1B
Revenue
$3.7B
Cost of revenue
$1.6B
Quarter-over-quarter change
-2.4 pts
Year-over-year change
-8.2 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 |
|---|---|---|---|---|
| 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% |
| Mar 31, 2024 | $3.7B | $2.1B | $1.6B | 57.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
-2.4 pts
Year-over-year change
Mar 31, 2023
-8.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The decline in gross profit outpaced the decline in revenue, indicating that cost of revenue did not fall proportionally. This relationship was the strongest observable driver of margin compression.
Compared to the immediately preceding quarter, revenue and gross profit were lower while gross margin weakened. Versus the same quarter one year earlier, all three metrics—revenue, gross profit, and gross margin—were lower.
Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters, as its stickiness has been a key factor in margin changes.