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Cloud Gross Margin
Indicates profitability of cloud services, showing efficiency and potential for scaling in this high-growth area.Cloud gross margin has been drifting lower since late‑2024, reflecting a deliberate trade‑off: rapid AI consumption and large-capacity buildouts are driving revenue but compressing cloud margins. Management warns of further mid‑60s margin pressure and very elevated CapEx and capacity constraints through 2026. For investors this signals near‑term profitability headwinds tied to heavy AI investment; monitor CapEx efficiency (new accelerators, throughput gains) and the shift to consumption pricing to judge when scale and product mix will restore margin leverage.
Date | Cloud Gross Margin |
|---|---|
Jun 30, 2026 | 65.00 |
Mar 31, 2026 | 66.00 |
Dec 31, 2025 | 67.00 |
Sep 30, 2025 | 68.00 |
Jun 30, 2025 | 68.00 |
Mar 31, 2025 | 69.00 |
Dec 31, 2024 | 70.00 |
Sep 30, 2024 | 72.00 |
Jun 30, 2024 | 72.00 |
Mar 31, 2024 | 72.00 |