Elevance Health, Inc. stock research
FY2024 Q3
Elevance Health (ELV) Gross Margin — Quarter Ended Sep 30, 2024
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. However, the gross margin narrowed slightly as cost of revenue grew at a faster pace than revenue.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. However, the gross margin narrowed slightly as cost of revenue grew at a faster pace than revenue.
- The primary observable driver of the margin change is the proportionally faster increase in cost of revenue relative to revenue growth.
- Compared to the immediately preceding quarter, revenue and gross profit were higher while gross margin was slightly lower. Versus the same quarter one year ago, revenue and gross profit were also higher, but gross margin was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
88.7%
Gross profit
$40.0B
Revenue
$45.1B
Cost of revenue
$5.1B
Quarter-over-quarter change
-0.3 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 |
|---|---|---|---|---|
| Dec 31, 2023 | $42.6B | $37.8B | $4.8B | 88.7% |
| Mar 31, 2024 | $42.6B | $38.8B | $3.8B | 91.0% |
| Jun 30, 2024 | $43.9B | $39.1B | $4.8B | 89.0% |
| Sep 30, 2024 | $45.1B | $40.0B | $5.1B | 88.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
-0.3 pts
Year-over-year change
Sep 30, 2023
-0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable driver of the margin change is the proportionally faster increase in cost of revenue relative to revenue growth.
Compared to the immediately preceding quarter, revenue and gross profit were higher while gross margin was slightly lower. Versus the same quarter one year ago, revenue and gross profit were also higher, but gross margin was lower.
Monitor the trend of cost of revenue growth relative to revenue growth to assess margin sustainability.