Adobe Inc. stock research
FY2024 Q2
Adobe (ADBE) Gross Margin — Quarter Ended May 31, 2024
Revenue and gross profit both increased, while cost of revenue rose modestly. The gross margin strengthened as revenue growth outpaced cost growth.
Gross margin takeaway
Quarter ended May 31, 2024 · FY2024 Q2
Revenue and gross profit both increased, while cost of revenue rose modestly. The gross margin strengthened as revenue growth outpaced cost growth.
- The gross margin improved sequentially and year-over-year, driven by revenue increasing at a faster rate than cost of revenue.
- Compared to the prior quarter, gross margin was slightly higher. Compared to the same quarter a year ago, gross margin was also higher, reflecting sustained improvement.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
88.7%
Gross profit
$4.7B
Revenue
$5.3B
Cost of revenue
$598.0M
Quarter-over-quarter change
+0.1 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.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Sep 1, 2023 | $4.9B | $4.3B | $580.0M | 88.1% |
| Dec 1, 2023 | $5.0B | $4.4B | $634.0M | 87.4% |
| Mar 1, 2024 | $5.2B | $4.6B | $590.0M | 88.6% |
| May 31, 2024 | $5.3B | $4.7B | $598.0M | 88.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 1, 2024
+0.1 pts
Year-over-year change
Jun 2, 2023
+0.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved sequentially and year-over-year, driven by revenue increasing at a faster rate than cost of revenue.
Compared to the prior quarter, gross margin was slightly higher. Compared to the same quarter a year ago, gross margin was also higher, reflecting sustained improvement.
Monitor the trend in cost of revenue, which has been increasing in absolute dollar terms.