Cost of Revenue: Key Insights for International Business Machines Corporation and Applied Materials, Inc.

IBM vs. AMAT: Cost of Revenue Trends Unveiled

__timestampApplied Materials, Inc.International Business Machines Corporation
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In pursuit of knowledge

Cost of Revenue: A Comparative Analysis

In the ever-evolving landscape of technology, understanding the cost of revenue is crucial for evaluating a company's financial health. This analysis focuses on two industry giants: International Business Machines Corporation (IBM) and Applied Materials, Inc. (AMAT).

IBM's Financial Trajectory

From 2014 to 2024, IBM's cost of revenue has seen a significant decline, dropping from approximately $46 billion to $27 billion. This 41% reduction reflects IBM's strategic shift towards more efficient operations and a focus on high-margin services.

AMAT's Growth Story

Conversely, Applied Materials has experienced a robust increase in its cost of revenue, rising from $5 billion in 2014 to $14 billion in 2024. This 180% surge underscores AMAT's expansion and increased production capacity to meet growing demand in the semiconductor industry.

Key Takeaways

While IBM is optimizing its operations, AMAT is scaling up, highlighting diverse strategies in the tech sector.

Published by
U.S. Securities and Exchange Commission

Source link
sec.gov

Date published
28 Jan 2025