GE HealthCare Technologies Inc. stock research
FY2024 Q2
GE HealthCare Technologies (GEHC) Gross Margin — Quarter Ended Jun 30, 2024
Revenue was stable compared to the same quarter last year and slightly higher than the prior quarter. Gross profit improved relative to both periods, with cost of revenue lower year over year and slightly higher sequentially, resulting in a stronger gross margin.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
Revenue was stable compared to the same quarter last year and slightly higher than the prior quarter. Gross profit improved relative to both periods, with cost of revenue lower year over year and slightly higher sequentially, resulting in a stronger gross margin.
- The most observable driver of margin improvement is the combination of stable revenue and lower cost of revenue year over year, as well as a favorable sequential shift where revenue growth outpaced cost growth.
- Gross margin strengthened compared to both the preceding quarter and the same quarter one year earlier. Revenue was roughly steady year over year, while cost of revenue decreased; sequentially, both revenue and cost rose, but at a favorable pace for gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
41.4%
Gross profit
$2.0B
Revenue
$4.8B
Cost of revenue
$2.8B
Quarter-over-quarter change
+0.5 pts
Year-over-year change
+1.1 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 | $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% |
| Jun 30, 2024 | $4.8B | $2.0B | $2.8B | 41.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
+0.5 pts
Year-over-year change
Jun 30, 2023
+1.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable driver of margin improvement is the combination of stable revenue and lower cost of revenue year over year, as well as a favorable sequential shift where revenue growth outpaced cost growth.
Gross margin strengthened compared to both the preceding quarter and the same quarter one year earlier. Revenue was roughly steady year over year, while cost of revenue decreased; sequentially, both revenue and cost rose, but at a favorable pace for gross margin.
Monitor the trend in cost of revenue given its year-over-year decline and sequential increase, as future shifts could influence margin stability.