For quite a while, Intel‘s (NASDAQ: INTC) data-center group (DCG) has enjoyed an extremely high operating margin, often surpassing 50% in some quarters. However, in Intel’s most recent quarter, DCG’s operating-margin percentage fell to just 35.1% — a 9-percentage-point drop year over year from approximately 44% a year earlier.
Absolute operating profit also dropped from $1.764 billion in the year-ago period to just $1.487 billion, even as revenue rose slightly from $4 billion to $4.23 billion.
Image source: Intel.