BM

Bristol-Myers Squibb Company stock research

Jun 30, 2024

FY2024 Q2

Bristol-Myers Squibb (BMY) Gross Margin — Quarter Ended Jun 30, 2024

Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin weakened slightly from the prior quarter and also declined compared to the same quarter last year, as cost of revenue grew faster than revenue.

Gross margin takeaway

Quarter ended Jun 30, 2024 · FY2024 Q2

Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin weakened slightly from the prior quarter and also declined compared to the same quarter last year, as cost of revenue grew faster than revenue.

  • The strongest observable margin driver is the relationship between revenue and cost of revenue: revenue increased while cost of revenue rose more sharply, compressing gross margin.
  • Compared to the immediately preceding quarter, gross margin was lower despite higher revenue, as cost of revenue increased at a faster rate. Versus the same quarter one year earlier, gross margin also weakened, with revenue higher but cost of revenue rising more substantially.

Gross margin snapshot

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

Gross margin

73.2%

Gross profit

$8.9B

Revenue

$12.2B

Cost of revenue

$3.3B

Quarter-over-quarter change

-2.1 pts

Year-over-year change

-1.2 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Sep 30, 2023$11.0B$8.5B$2.5B77.1%
Dec 31, 2023$11.5B$8.7B$2.7B76.1%
Mar 31, 2024$11.9B$8.9B$2.9B75.3%
Jun 30, 2024$12.2B$8.9B$3.3B73.2%

Quarterly comparisons

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

Previous-quarter change

Mar 31, 2024

-2.1 pts

Year-over-year change

Jun 30, 2023

-1.2 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 increased while cost of revenue rose more sharply, compressing gross margin.

Compared to the immediately preceding quarter, gross margin was lower despite higher revenue, as cost of revenue increased at a faster rate. Versus the same quarter one year earlier, gross margin also weakened, with revenue higher but cost of revenue rising more substantially.

Monitor the trajectory of cost of revenue relative to revenue, as its faster growth has been the primary factor behind the margin decline.