Danaher Corporation stock research
FY2024 Q3
Danaher (DHR) Gross Margin — Quarter Ended Sep 27, 2024
Revenue increased compared to the previous quarter and the same quarter a year ago. Gross profit held steady from the prior quarter but rose from the year-ago period, while cost of revenue grew relative to both, resulting in a gross margin that weakened sequentially but improved year over year.
Gross margin takeaway
Quarter ended Sep 27, 2024 · FY2024 Q3
Revenue increased compared to the previous quarter and the same quarter a year ago. Gross profit held steady from the prior quarter but rose from the year-ago period, while cost of revenue grew relative to both, resulting in a gross margin that weakened sequentially but improved year over year.
- The strongest observable driver was the sequential increase in cost of revenue relative to revenue, which outpaced revenue growth and caused gross margin to weaken from the prior quarter.
- Compared with the prior quarter, gross margin was lower; compared with the same quarter a year ago, gross margin was higher. Revenue and cost of revenue both increased versus the prior quarter and the year-ago quarter, while gross profit was unchanged sequentially and higher year over year.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
58.7%
Gross profit
$3.4B
Revenue
$5.8B
Cost of revenue
$2.4B
Quarter-over-quarter change
-1.0 pts
Year-over-year change
+0.4 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 |
|---|---|---|---|---|
| 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% |
| Sep 27, 2024 | $5.8B | $3.4B | $2.4B | 58.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 28, 2024
-1.0 pts
Year-over-year change
Sep 29, 2023
+0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver was the sequential increase in cost of revenue relative to revenue, which outpaced revenue growth and caused gross margin to weaken from the prior quarter.
Compared with the prior quarter, gross margin was lower; compared with the same quarter a year ago, gross margin was higher. Revenue and cost of revenue both increased versus the prior quarter and the year-ago quarter, while gross profit was unchanged sequentially and higher year over year.
Monitor inventory levels as disclosed in the balance sheet included in the filing, as changes may affect future cost of revenue.