AB

Abbott Laboratories stock research

Dec 31, 2024

FY2024 Q4

Abbott Laboratories (ABT) Gross Margin — Quarter Ended Dec 31, 2024

In the current quarter, revenue increased while cost of revenue also rose, resulting in a higher gross profit but a slightly lower gross margin compared to the prior quarter. Versus the same quarter one year earlier, both revenue and gross profit were higher, while gross margin was slightly lower.

Gross margin takeaway

Quarter ended Dec 31, 2024 · FY2024 Q4

In the current quarter, revenue increased while cost of revenue also rose, resulting in a higher gross profit but a slightly lower gross margin compared to the prior quarter. Versus the same quarter one year earlier, both revenue and gross profit were higher, while gross margin was slightly lower.

  • Gross profit increased at a slower pace than revenue, causing a marginal weakening in gross margin. The strongest observable driver was revenue growth, which outpaced cost growth compared to the prior year.
  • Compared to the prior quarter, revenue and gross profit were higher, but gross margin weakened slightly. Compared to the same quarter one year earlier, revenue and gross profit were also higher, with gross margin slightly lower.

Gross margin snapshot

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

Gross margin

55.0%

Gross profit

$6.0B

Revenue

$11.0B

Cost of revenue

$4.9B

Quarter-over-quarter change

-0.9 pts

Year-over-year change

-0.5 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2024$10.0B$5.5B$4.5B55.2%
Jun 30, 2024$10.4B$5.8B$4.6B55.6%
Sep 30, 2024$10.6B$5.9B$4.7B55.8%
Dec 31, 2024$11.0B$6.0B$4.9B55.0%

Quarterly comparisons

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

Previous-quarter change

Sep 30, 2024

-0.9 pts

Year-over-year change

Dec 31, 2023

-0.5 pts

What the margin says

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

Gross profit increased at a slower pace than revenue, causing a marginal weakening in gross margin. The strongest observable driver was revenue growth, which outpaced cost growth compared to the prior year.

Compared to the prior quarter, revenue and gross profit were higher, but gross margin weakened slightly. Compared to the same quarter one year earlier, revenue and gross profit were also higher, with gross margin slightly lower.

Monitor the relationship between revenue growth and cost of revenue changes, as gross margin showed a slight decline despite higher volume.