Texas Instruments Incorporated stock research
FY2024 Q3
Texas Instruments (TXN) Gross Margin — Quarter Ended Sep 30, 2024
Revenue increased compared to the prior quarter, while gross profit rose at a faster rate than cost of revenue, leading to an improved gross margin. Versus the same quarter a year ago, revenue was lower and gross profit declined more sharply, resulting in a weaker gross margin.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue increased compared to the prior quarter, while gross profit rose at a faster rate than cost of revenue, leading to an improved gross margin. Versus the same quarter a year ago, revenue was lower and gross profit declined more sharply, resulting in a weaker gross margin.
- The sequential improvement in gross margin was driven by revenue growth that outpaced the increase in cost of revenue, as revenue rose while cost of revenue increased only modestly.
- Compared with the immediately preceding quarter, gross margin improved. Compared with the same quarter one year earlier, gross margin weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
59.6%
Gross profit
$2.5B
Revenue
$4.2B
Cost of revenue
$1.7B
Quarter-over-quarter change
+1.8 pts
Year-over-year change
-2.5 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 |
|---|---|---|---|---|
| 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% |
| Sep 30, 2024 | $4.2B | $2.5B | $1.7B | 59.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
+1.8 pts
Year-over-year change
Sep 30, 2023
-2.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential improvement in gross margin was driven by revenue growth that outpaced the increase in cost of revenue, as revenue rose while cost of revenue increased only modestly.
Compared with the immediately preceding quarter, gross margin improved. Compared with the same quarter one year earlier, gross margin weakened.
Monitor capital expenditure levels, as the company continues to invest significantly in semiconductor manufacturing equipment and facilities.