GE Vernova Inc. stock research
FY2024 Q4
GE Vernova (GEV) Gross Margin — Quarter Ended Dec 31, 2024
The sequential improvement in gross profit outpaced the gain in revenue, as cost of revenue grew at a slower pace, lifting gross margin relative to the prior quarter. Compared to the same quarter one year earlier, gross profit also rose more quickly than cost of revenue, resulting in a higher gross margin year over year.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
The sequential improvement in gross profit outpaced the gain in revenue, as cost of revenue grew at a slower pace, lifting gross margin relative to the prior quarter. Compared to the same quarter one year earlier, gross profit also rose more quickly than cost of revenue, resulting in a higher gross margin year over year.
- The strongest observable driver of the gross margin improvement was the relationship between revenue and cost of revenue, with revenue increasing while cost of revenue remained relatively contained compared to the prior quarter.
- Gross margin for this quarter was higher than both the immediately preceding quarter and the same quarter one year earlier. The margin expansion relative to the prior quarter was more pronounced than the year-over-year gain.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
20.1%
Gross profit
$2.1B
Revenue
$10.6B
Cost of revenue
$8.4B
Quarter-over-quarter change
+7.7 pts
Year-over-year change
+3.2 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 |
|---|---|---|---|---|
| Mar 31, 2024 | $7.3B | $1.1B | $6.1B | 15.8% |
| Jun 30, 2024 | $8.2B | $1.7B | $6.5B | 20.7% |
| Sep 30, 2024 | $8.9B | $1.1B | $7.8B | 12.4% |
| Dec 31, 2024 | $10.6B | $2.1B | $8.4B | 20.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
+7.7 pts
Year-over-year change
Dec 31, 2023
+3.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver of the gross margin improvement was the relationship between revenue and cost of revenue, with revenue increasing while cost of revenue remained relatively contained compared to the prior quarter.
Gross margin for this quarter was higher than both the immediately preceding quarter and the same quarter one year earlier. The margin expansion relative to the prior quarter was more pronounced than the year-over-year gain.
Monitor whether cost of revenue can continue to trail revenue growth, as that dynamic was central to the margin improvement this quarter.