FI

Fidelity National Information Services, Inc. stock research

Mar 31, 2024

FY2024 Q1

Fidelity National Information Services (FIS) Gross Margin — Quarter Ended Mar 31, 2024

Revenue was stable compared to the previous quarter, while gross profit and gross margin both decreased. Compared to the same quarter a year ago, revenue, gross profit, and gross margin all improved.

Gross margin takeaway

Quarter ended Mar 31, 2024 · FY2024 Q1

Revenue was stable compared to the previous quarter, while gross profit and gross margin both decreased. Compared to the same quarter a year ago, revenue, gross profit, and gross margin all improved.

  • The gross margin weakened sequentially as cost of revenue increased while revenue remained flat. On a year-over-year basis, gross margin strengthened, driven by a larger increase in gross profit relative to revenue growth.
  • Compared to the immediately preceding quarter, gross margin was lower. Compared to the same quarter one year earlier, gross margin was higher.

Gross margin snapshot

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

Gross margin

36.8%

Gross profit

$909.0M

Revenue

$2.5B

Cost of revenue

$1.6B

Quarter-over-quarter change

-1.3 pts

Year-over-year change

+2.5 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, 2023$2.4B$823.0M$1.6B34.3%
Jun 30, 2023$2.4B$912.0M$1.5B37.6%
Sep 30, 2023$2.5B$951.0M$1.5B38.2%
Mar 31, 2024$2.5B$909.0M$1.6B36.8%

Quarterly comparisons

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

Previous-quarter change

Sep 30, 2023

-1.3 pts

Year-over-year change

Mar 31, 2023

+2.5 pts

What the margin says

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

The gross margin weakened sequentially as cost of revenue increased while revenue remained flat. On a year-over-year basis, gross margin strengthened, driven by a larger increase in gross profit relative to revenue growth.

Compared to the immediately preceding quarter, gross margin was lower. Compared to the same quarter one year earlier, gross margin was higher.

Monitor cost of revenue trends given its increase from the prior quarter while revenue held steady.

FIS Gross Margin — Quarter Ended Mar 31, 2024