Texas Instruments Incorporated stock research
FY2024 Q2
Texas Instruments (TXN) Gross Margin — Quarter Ended Jun 30, 2024
Revenue was higher than the previous quarter but lower than the same quarter a year earlier, while cost of revenue remained unchanged across both comparisons. As a result, gross profit moved in line with revenue, and gross margin improved sequentially but weakened year over year.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
Revenue was higher than the previous quarter but lower than the same quarter a year earlier, while cost of revenue remained unchanged across both comparisons. As a result, gross profit moved in line with revenue, and gross margin improved sequentially but weakened year over year.
- The most observable margin driver is the stability of cost of revenue, which remained unchanged across the current, prior, and year-ago quarters, making revenue changes the primary factor in gross margin movement.
- Compared with the immediately preceding quarter, revenue and gross profit were higher, and gross margin improved. Compared with the same quarter one year earlier, revenue and gross profit were lower, and gross margin weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
57.8%
Gross profit
$2.2B
Revenue
$3.8B
Cost of revenue
$1.6B
Quarter-over-quarter change
+0.6 pts
Year-over-year change
-6.4 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 |
|---|---|---|---|---|
| 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% |
| Jun 30, 2024 | $3.8B | $2.2B | $1.6B | 57.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
+0.6 pts
Year-over-year change
Jun 30, 2023
-6.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable margin driver is the stability of cost of revenue, which remained unchanged across the current, prior, and year-ago quarters, making revenue changes the primary factor in gross margin movement.
Compared with the immediately preceding quarter, revenue and gross profit were higher, and gross margin improved. Compared with the same quarter one year earlier, revenue and gross profit were lower, and gross margin weakened.
Monitor the trajectory of revenue, as its direction directly influences gross margin when cost of revenue remains steady.