AB

Abbott Laboratories stock research

Jun 30, 2024

FY2024 Q2

Abbott Laboratories (ABT) Gross Margin — Quarter Ended Jun 30, 2024

Revenue, gross profit, and cost of revenue all increased compared to both the prior quarter and the same quarter last year. Gross margin improved slightly versus both periods, indicating that gross profit grew faster than cost of revenue.

Gross margin takeaway

Quarter ended Jun 30, 2024 · FY2024 Q2

Revenue, gross profit, and cost of revenue all increased compared to both the prior quarter and the same quarter last year. Gross margin improved slightly versus both periods, indicating that gross profit grew faster than cost of revenue.

  • The strongest observable margin driver is the increase in gross profit relative to cost of revenue, as gross margin improved sequentially and year-over-year.
  • Compared to the prior quarter, revenue and gross profit were higher, while gross margin improved. Versus the same quarter last year, revenue and gross profit were also higher, with gross margin showing a similar improvement.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

55.6%

Gross profit

$5.8B

Revenue

$10.4B

Cost of revenue

$4.6B

Quarter-over-quarter change

+0.4 pts

Year-over-year change

+0.6 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Sep 30, 2023$10.1B$5.5B$4.6B54.6%
Dec 31, 2023$10.2B$5.7B$4.6B55.5%
Mar 31, 2024$10.0B$5.5B$4.5B55.2%
Jun 30, 2024$10.4B$5.8B$4.6B55.6%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Mar 31, 2024

+0.4 pts

Year-over-year change

Jun 30, 2023

+0.6 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The strongest observable margin driver is the increase in gross profit relative to cost of revenue, as gross margin improved sequentially and year-over-year.

Compared to the prior quarter, revenue and gross profit were higher, while gross margin improved. Versus the same quarter last year, revenue and gross profit were also higher, with gross margin showing a similar improvement.

Monitor the trend in cost of revenue relative to revenue, as its growth rate will directly impact future gross margin.