Amgen Inc. stock research
FY2024 Q2
Amgen (AMGN) Gross Margin — Quarter Ended Jun 30, 2024
Revenue and gross profit both increased compared to the prior quarter, while cost of revenue remained stable, leading to an improved gross margin. Versus the same quarter last year, revenue was higher but gross profit was unchanged, as cost of revenue rose substantially, resulting in a weakened gross margin.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
Revenue and gross profit both increased compared to the prior quarter, while cost of revenue remained stable, leading to an improved gross margin. Versus the same quarter last year, revenue was higher but gross profit was unchanged, as cost of revenue rose substantially, resulting in a weakened gross margin.
- The strongest observable margin driver is the relationship between revenue and cost of revenue: revenue grew from the prior quarter while cost of revenue held steady, which directly supported gross margin expansion.
- Compared to the immediately preceding quarter, gross margin improved as revenue increased and cost of revenue was unchanged. Compared to the same quarter one year earlier, gross margin weakened because cost of revenue rose more than revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
61.4%
Gross profit
$5.2B
Revenue
$8.4B
Cost of revenue
$3.2B
Quarter-over-quarter change
+4.4 pts
Year-over-year change
-12.6 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 30, 2023 | $6.9B | $5.1B | $1.8B | 73.8% |
| Dec 31, 2023 | $8.2B | $5.1B | $3.1B | 62.0% |
| Mar 31, 2024 | $7.4B | $4.2B | $3.2B | 57.0% |
| Jun 30, 2024 | $8.4B | $5.2B | $3.2B | 61.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
+4.4 pts
Year-over-year change
Jun 30, 2023
-12.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between revenue and cost of revenue: revenue grew from the prior quarter while cost of revenue held steady, which directly supported gross margin expansion.
Compared to the immediately preceding quarter, gross margin improved as revenue increased and cost of revenue was unchanged. Compared to the same quarter one year earlier, gross margin weakened because cost of revenue rose more than revenue.
Monitor the trajectory of cost of revenue, which increased significantly year-over-year while gross profit remained flat.