Texas Instruments Incorporated stock research
FY2024 Q4
Texas Instruments (TXN) Gross Margin — Quarter Ended Dec 31, 2024
Revenue was lower than both the prior quarter and the same quarter last year, while cost of revenue was stable quarter over quarter and higher year over year. Gross profit and gross margin both weakened compared with the two earlier periods, reflecting a shift in the relationship between revenue and cost of revenue.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
Revenue was lower than both the prior quarter and the same quarter last year, while cost of revenue was stable quarter over quarter and higher year over year. Gross profit and gross margin both weakened compared with the two earlier periods, reflecting a shift in the relationship between revenue and cost of revenue.
- Gross margin declined primarily because revenue decreased while cost of revenue remained broadly unchanged, compressing the spread between the two. No single product or segment driver can be inferred from the supplied filing context.
- Compared with the prior quarter, revenue and gross profit were lower, cost of revenue was stable, and gross margin weakened. Compared with the same quarter last year, revenue, gross profit, and gross margin were all lower, while cost of revenue was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
57.7%
Gross profit
$2.3B
Revenue
$4.0B
Cost of revenue
$1.7B
Quarter-over-quarter change
-1.9 pts
Year-over-year change
-1.9 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, 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% |
| Dec 31, 2024 | $4.0B | $2.3B | $1.7B | 57.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
-1.9 pts
Year-over-year change
Dec 31, 2023
-1.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin declined primarily because revenue decreased while cost of revenue remained broadly unchanged, compressing the spread between the two. No single product or segment driver can be inferred from the supplied filing context.
Compared with the prior quarter, revenue and gross profit were lower, cost of revenue was stable, and gross margin weakened. Compared with the same quarter last year, revenue, gross profit, and gross margin were all lower, while cost of revenue was higher.
Monitor the trend in cost of revenue relative to revenue, as its relative stability despite lower revenue was the key factor behind the gross margin compression.