Accenture plc stock research
FY2024 Q2
Accenture (ACN) Gross Margin — Quarter Ended Feb 29, 2024
Revenue was unchanged year over year but sequentially lower, while gross profit improved year over year and weakened sequentially. The gross margin was slightly higher than the same quarter last year but lower than the prior quarter, reflecting a mixed performance.
Gross margin takeaway
Quarter ended Feb 29, 2024 · FY2024 Q2
Revenue was unchanged year over year but sequentially lower, while gross profit improved year over year and weakened sequentially. The gross margin was slightly higher than the same quarter last year but lower than the prior quarter, reflecting a mixed performance.
- Cost of revenue was slightly lower year over year but higher sequentially, moving inversely to the direction of revenue. The gross margin decline from the prior quarter was driven by a proportionally larger decrease in gross profit relative to the reduction in revenue.
- Compared to the immediately preceding quarter, revenue, gross profit, and gross margin were all lower. Compared to the same quarter one year earlier, revenue was flat, gross profit was higher, and gross margin improved slightly.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
30.9%
Gross profit
$4.9B
Revenue
$15.8B
Cost of revenue
$10.9B
Quarter-over-quarter change
-2.7 pts
Year-over-year change
+0.3 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 |
|---|---|---|---|---|
| Feb 28, 2023 | $15.8B | $4.8B | $11.0B | 30.6% |
| May 31, 2023 | $16.6B | $5.5B | $11.0B | 33.4% |
| Nov 30, 2023 | $16.2B | $5.4B | $10.8B | 33.6% |
| Feb 29, 2024 | $15.8B | $4.9B | $10.9B | 30.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Nov 30, 2023
-2.7 pts
Year-over-year change
Feb 28, 2023
+0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Cost of revenue was slightly lower year over year but higher sequentially, moving inversely to the direction of revenue. The gross margin decline from the prior quarter was driven by a proportionally larger decrease in gross profit relative to the reduction in revenue.
Compared to the immediately preceding quarter, revenue, gross profit, and gross margin were all lower. Compared to the same quarter one year earlier, revenue was flat, gross profit was higher, and gross margin improved slightly.
Monitor the trajectory of cost of revenue relative to revenue to assess whether the year-over-year improvement in gross margin can be sustained.