GE HealthCare Technologies Inc. stock research
FY2024 Q1
GE HealthCare Technologies (GEHC) Gross Margin — Quarter Ended Mar 31, 2024
Revenue was stable year over year while cost of revenue decreased, resulting in higher gross profit and improved gross margin. Sequentially, revenue declined and cost of revenue also declined, but gross margin weakened slightly as the revenue decrease outpaced the cost reduction.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue was stable year over year while cost of revenue decreased, resulting in higher gross profit and improved gross margin. Sequentially, revenue declined and cost of revenue also declined, but gross margin weakened slightly as the revenue decrease outpaced the cost reduction.
- The strongest observable driver is the year-over-year reduction in cost of revenue, which allowed gross profit to remain stable despite flat revenue and lifted gross margin.
- Compared with the immediate prior quarter, gross margin was lower, reflecting a larger proportionate decline in revenue relative to cost of revenue. Compared with the same quarter last year, gross margin was higher, supported by lower cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
40.9%
Gross profit
$1.9B
Revenue
$4.7B
Cost of revenue
$2.7B
Quarter-over-quarter change
-0.5 pts
Year-over-year change
+0.7 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 | $4.8B | $1.9B | $2.9B | 40.3% |
| Sep 30, 2023 | $4.8B | $1.9B | $2.9B | 40.1% |
| Dec 31, 2023 | $5.2B | $2.2B | $3.0B | 41.4% |
| Mar 31, 2024 | $4.7B | $1.9B | $2.7B | 40.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
-0.5 pts
Year-over-year change
Mar 31, 2023
+0.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the year-over-year reduction in cost of revenue, which allowed gross profit to remain stable despite flat revenue and lifted gross margin.
Compared with the immediate prior quarter, gross margin was lower, reflecting a larger proportionate decline in revenue relative to cost of revenue. Compared with the same quarter last year, gross margin was higher, supported by lower cost of revenue.
Monitor whether revenue trends can stabilize or improve to sustain gross margin performance.