BM

Bristol-Myers Squibb Company stock research

Dec 31, 2024

FY2024 Q4

Bristol-Myers Squibb (BMY) Gross Margin — Quarter Ended Dec 31, 2024

Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit declined relative to both periods. The gross margin weakened significantly from the preceding quarter and from a year earlier, driven by a larger increase in cost of revenue relative to revenue.

Gross margin takeaway

Quarter ended Dec 31, 2024 · FY2024 Q4

Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit declined relative to both periods. The gross margin weakened significantly from the preceding quarter and from a year earlier, driven by a larger increase in cost of revenue relative to revenue.

  • The gross margin weakened as cost of revenue rose more sharply than revenue, compressing the profit retained per dollar of sales.
  • Compared to the immediately preceding quarter, revenue was higher but gross profit was lower, and gross margin weakened. Versus the same quarter one year earlier, revenue was higher while gross profit was lower, and gross margin also weakened.

Gross margin snapshot

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

Gross margin

61.0%

Gross profit

$7.5B

Revenue

$12.3B

Cost of revenue

$4.8B

Quarter-over-quarter change

-14.1 pts

Year-over-year change

-15.1 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2024$11.9B$8.9B$2.9B75.3%
Jun 30, 2024$12.2B$8.9B$3.3B73.2%
Sep 30, 2024$11.9B$8.9B$3.0B75.1%
Dec 31, 2024$12.3B$7.5B$4.8B61.0%

Quarterly comparisons

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

Previous-quarter change

Sep 30, 2024

-14.1 pts

Year-over-year change

Dec 31, 2023

-15.1 pts

What the margin says

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

The gross margin weakened as cost of revenue rose more sharply than revenue, compressing the profit retained per dollar of sales.

Compared to the immediately preceding quarter, revenue was higher but gross profit was lower, and gross margin weakened. Versus the same quarter one year earlier, revenue was higher while gross profit was lower, and gross margin also weakened.

Monitor the trajectory of cost of revenue relative to revenue, as its disproportionate increase drove the margin compression.