AbbVie Inc. stock research
FY2024 Q2
AbbVie (ABBV) Gross Margin — Quarter Ended Jun 30, 2024
In the current quarter, revenue and gross profit were higher than in the previous quarter and the year-ago quarter, while cost of revenue increased slightly from the previous quarter and remained unchanged from the year-ago quarter. Consequently, gross margin improved relative to both prior periods.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
In the current quarter, revenue and gross profit were higher than in the previous quarter and the year-ago quarter, while cost of revenue increased slightly from the previous quarter and remained unchanged from the year-ago quarter. Consequently, gross margin improved relative to both prior periods.
- The strongest observable driver of the margin improvement was the growth in revenue that outpaced the change in cost of revenue, resulting in a higher proportion of revenue retained as gross profit.
- Compared to the previous quarter, revenue, gross profit, and gross margin were higher, while cost of revenue was slightly higher. Compared to the year-ago quarter, revenue and gross profit were higher, gross margin improved, and cost of revenue was unchanged.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
70.9%
Gross profit
$10.3B
Revenue
$14.5B
Cost of revenue
$4.2B
Quarter-over-quarter change
+4.2 pts
Year-over-year change
+1.5 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 |
|---|---|---|---|---|
| Jun 30, 2023 | $13.9B | $9.6B | $4.2B | 69.4% |
| Sep 30, 2023 | $13.9B | $7.4B | $6.5B | 53.4% |
| Mar 31, 2024 | $12.3B | $8.2B | $4.1B | 66.7% |
| Jun 30, 2024 | $14.5B | $10.3B | $4.2B | 70.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
+4.2 pts
Year-over-year change
Jun 30, 2023
+1.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver of the margin improvement was the growth in revenue that outpaced the change in cost of revenue, resulting in a higher proportion of revenue retained as gross profit.
Compared to the previous quarter, revenue, gross profit, and gross margin were higher, while cost of revenue was slightly higher. Compared to the year-ago quarter, revenue and gross profit were higher, gross margin improved, and cost of revenue was unchanged.
Monitor the trend in cost of revenue relative to revenue, as the current quarter's margin improvement relied on cost stability.