GE

GE HealthCare Technologies Inc. stock research

Sep 30, 2024

FY2024 Q3

GE HealthCare Technologies (GEHC) Gross Margin — Quarter Ended Sep 30, 2024

Revenue increased compared to the prior quarter and the same quarter last year, while gross profit remained stable sequentially but grew year-over-year. Cost of revenue was unchanged sequentially but declined year-over-year, resulting in a higher gross margin.

Gross margin takeaway

Quarter ended Sep 30, 2024 · FY2024 Q3

Revenue increased compared to the prior quarter and the same quarter last year, while gross profit remained stable sequentially but grew year-over-year. Cost of revenue was unchanged sequentially but declined year-over-year, resulting in a higher gross margin.

  • The gross margin improved from both the prior quarter and the year-ago period, with revenue higher and cost of revenue lower compared to the year-ago quarter.
  • Sequentially, gross margin rose slightly as revenue increased while cost of revenue held steady. Year-over-year, the margin expanded more notably as revenue grew and cost of revenue declined.

Gross margin snapshot

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

Gross margin

41.7%

Gross profit

$2.0B

Revenue

$4.9B

Cost of revenue

$2.8B

Quarter-over-quarter change

+0.3 pts

Year-over-year change

+1.5 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Dec 31, 2023$5.2B$2.2B$3.0B41.4%
Mar 31, 2024$4.7B$1.9B$2.7B40.9%
Jun 30, 2024$4.8B$2.0B$2.8B41.4%
Sep 30, 2024$4.9B$2.0B$2.8B41.7%

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

+1.5 pts

What the margin says

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

The gross margin improved from both the prior quarter and the year-ago period, with revenue higher and cost of revenue lower compared to the year-ago quarter.

Sequentially, gross margin rose slightly as revenue increased while cost of revenue held steady. Year-over-year, the margin expanded more notably as revenue grew and cost of revenue declined.

Monitor the gross margin trajectory in upcoming quarters to assess whether the improvement is sustained.