AM

Amgen Inc. stock research

Sep 30, 2024

FY2024 Q3

Amgen (AMGN) Gross Margin — Quarter Ended Sep 30, 2024

Revenue increased while cost of revenue rose more than proportionally, causing gross profit to remain stable and gross margin to weaken. Compared to the same quarter one year earlier, gross margin is lower as cost of revenue grew substantially more than revenue.

Gross margin takeaway

Quarter ended Sep 30, 2024 · FY2024 Q3

Revenue increased while cost of revenue rose more than proportionally, causing gross profit to remain stable and gross margin to weaken. Compared to the same quarter one year earlier, gross margin is lower as cost of revenue grew substantially more than revenue.

  • Gross margin weakened sequentially and year-over-year, driven primarily by a higher cost of revenue relative to revenue.
  • Compared to the immediately preceding quarter, revenue was higher, gross profit was stable, and gross margin was slightly lower. Versus the same quarter one year earlier, revenue was higher, gross profit was marginally higher, and gross margin was lower.

Gross margin snapshot

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

Gross margin

61.1%

Gross profit

$5.2B

Revenue

$8.5B

Cost of revenue

$3.3B

Quarter-over-quarter change

-0.3 pts

Year-over-year change

-12.8 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Dec 31, 2023$8.2B$5.1B$3.1B62.0%
Mar 31, 2024$7.4B$4.2B$3.2B57.0%
Jun 30, 2024$8.4B$5.2B$3.2B61.4%
Sep 30, 2024$8.5B$5.2B$3.3B61.1%

Quarterly comparisons

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

Previous-quarter change

Jun 30, 2024

-0.3 pts

Year-over-year change

Sep 30, 2023

-12.8 pts

What the margin says

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

Gross margin weakened sequentially and year-over-year, driven primarily by a higher cost of revenue relative to revenue.

Compared to the immediately preceding quarter, revenue was higher, gross profit was stable, and gross margin was slightly lower. Versus the same quarter one year earlier, revenue was higher, gross profit was marginally higher, and gross margin was lower.

Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters.

AMGN Gross Margin — Quarter Ended Sep 30, 2024