Danaher Corporation stock research
FY2024 Q2
Danaher (DHR) Gross Margin — Quarter Ended Jun 28, 2024
Revenue and gross profit both decreased from the prior quarter, while cost of revenue remained stable, leading to a slightly weaker gross margin. Compared to the same quarter last year, revenue was lower but gross profit was higher and cost of revenue was lower, resulting in an improved gross margin.
Gross margin takeaway
Quarter ended Jun 28, 2024 · FY2024 Q2
Revenue and gross profit both decreased from the prior quarter, while cost of revenue remained stable, leading to a slightly weaker gross margin. Compared to the same quarter last year, revenue was lower but gross profit was higher and cost of revenue was lower, resulting in an improved gross margin.
- The most prominent observable margin driver is the reduction in cost of revenue relative to the prior year quarter, which supported a higher gross margin despite lower revenue. The stable cost of revenue sequentially contributed to a modest margin decline as revenue decreased.
- Sequentially, gross margin weakened slightly from the prior quarter as revenue and gross profit declined while cost of revenue was unchanged. Compared to the same quarter a year ago, gross margin improved significantly, driven by a lower cost of revenue and higher gross profit on lower revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
59.7%
Gross profit
$3.4B
Revenue
$5.7B
Cost of revenue
$2.3B
Quarter-over-quarter change
-0.5 pts
Year-over-year change
+3.6 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 |
|---|---|---|---|---|
| Jun 30, 2023 | $5.9B | $3.3B | $2.6B | 56.1% |
| Sep 29, 2023 | $5.6B | $3.3B | $2.3B | 58.2% |
| Mar 29, 2024 | $5.8B | $3.5B | $2.3B | 60.2% |
| Jun 28, 2024 | $5.7B | $3.4B | $2.3B | 59.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 29, 2024
-0.5 pts
Year-over-year change
Jun 30, 2023
+3.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most prominent observable margin driver is the reduction in cost of revenue relative to the prior year quarter, which supported a higher gross margin despite lower revenue. The stable cost of revenue sequentially contributed to a modest margin decline as revenue decreased.
Sequentially, gross margin weakened slightly from the prior quarter as revenue and gross profit declined while cost of revenue was unchanged. Compared to the same quarter a year ago, gross margin improved significantly, driven by a lower cost of revenue and higher gross profit on lower revenue.
Monitor whether cost of revenue remains stable or changes in coming quarters, as it was a key factor in margin performance both sequentially and year-over-year.