Fidelity National Information Services, Inc. stock research
FY2024 Q3
Fidelity National Information Services (FIS) Gross Margin — Quarter Ended Sep 30, 2024
Revenue rose sequentially and year-over-year, while cost of revenue increased at a slightly faster pace than gross profit relative to the prior year. As a result, gross margin weakened compared to the same quarter one year earlier, though it remained largely stable from the preceding quarter.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue rose sequentially and year-over-year, while cost of revenue increased at a slightly faster pace than gross profit relative to the prior year. As a result, gross margin weakened compared to the same quarter one year earlier, though it remained largely stable from the preceding quarter.
- Gross profit increased both sequentially and year-over-year, supported by higher revenue, but cost of revenue grew at a proportionally faster rate year-over-year, compressing the margin.
- Compared to the prior quarter, revenue and gross profit were both higher, and gross margin was essentially unchanged. Versus the same quarter last year, revenue and gross profit were higher, but gross margin was lower, reflecting a greater rise in cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
38.0%
Gross profit
$976.0M
Revenue
$2.6B
Cost of revenue
$1.6B
Quarter-over-quarter change
+0.1 pts
Year-over-year change
-0.2 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 30, 2023 | $2.5B | $951.0M | $1.5B | 38.2% |
| Mar 31, 2024 | $2.5B | $909.0M | $1.6B | 36.8% |
| Jun 30, 2024 | $2.5B | $943.0M | $1.5B | 37.9% |
| Sep 30, 2024 | $2.6B | $976.0M | $1.6B | 38.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
+0.1 pts
Year-over-year change
Sep 30, 2023
-0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit increased both sequentially and year-over-year, supported by higher revenue, but cost of revenue grew at a proportionally faster rate year-over-year, compressing the margin.
Compared to the prior quarter, revenue and gross profit were both higher, and gross margin was essentially unchanged. Versus the same quarter last year, revenue and gross profit were higher, but gross margin was lower, reflecting a greater rise in cost of revenue.
Monitor the trend in cost of revenue relative to revenue, as its faster year-over-year growth rate contributed to the margin decline.