CV

Chevron Corporation stock research

Jun 30, 2024

FY2024 Q2

Chevron (CVX) Gross Margin — Quarter Ended Jun 30, 2024

Revenue increased compared to both the prior quarter and the same quarter last year. However, gross profit decreased relative to the prior quarter, and the gross margin declined, as cost of revenue rose more than revenue.

Gross margin takeaway

Quarter ended Jun 30, 2024 · FY2024 Q2

Revenue increased compared to both the prior quarter and the same quarter last year. However, gross profit decreased relative to the prior quarter, and the gross margin declined, as cost of revenue rose more than revenue.

  • The primary margin driver was the proportionally larger increase in cost of revenue compared to revenue, which compressed the gross margin.
  • Sequentially, gross margin weakened from the prior quarter as cost of revenue increased faster than revenue. Compared to the same quarter a year ago, gross margin also weakened, despite higher revenue.

Gross margin snapshot

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

Gross margin

37.7%

Gross profit

$18.7B

Revenue

$49.6B

Cost of revenue

$30.9B

Quarter-over-quarter change

-2.7 pts

Year-over-year change

-0.9 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$51.9B$19.6B$32.3B37.7%
Dec 31, 2023$48.9B$20.5B$28.5B41.8%
Mar 31, 2024$46.6B$18.8B$27.7B40.4%
Jun 30, 2024$49.6B$18.7B$30.9B37.7%

Quarterly comparisons

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

Previous-quarter change

Mar 31, 2024

-2.7 pts

Year-over-year change

Jun 30, 2023

-0.9 pts

What the margin says

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

The primary margin driver was the proportionally larger increase in cost of revenue compared to revenue, which compressed the gross margin.

Sequentially, gross margin weakened from the prior quarter as cost of revenue increased faster than revenue. Compared to the same quarter a year ago, gross margin also weakened, despite higher revenue.

Monitor the trend in cost of revenue relative to revenue, as it is currently outpacing revenue growth.