Gilead Sciences, Inc. stock research
FY2024 Q2
Gilead Sciences (GILD) Gross Margin — Quarter Ended Jun 30, 2024
Revenue and gross profit both increased from the previous quarter and from the same quarter last year, while cost of revenue was slightly higher sequentially but lower compared to the year-ago quarter. Gross margin improved sequentially but weakened slightly relative to the same period last year.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
Revenue and gross profit both increased from the previous quarter and from the same quarter last year, while cost of revenue was slightly higher sequentially but lower compared to the year-ago quarter. Gross margin improved sequentially but weakened slightly relative to the same period last year.
- The improvement in gross margin from the prior quarter was driven by a larger increase in revenue relative to the change in cost of revenue. The year-over-year comparison shows a slightly lower gross margin despite higher revenue, indicating that cost of revenue increased at a somewhat faster pace than revenue.
- Gross margin improved compared to the immediately preceding quarter, moving from a lower level to a higher one. Compared to the same quarter one year earlier, gross margin was slightly lower, indicating a marginal weakening.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
77.8%
Gross profit
$5.4B
Revenue
$7.0B
Cost of revenue
$1.5B
Quarter-over-quarter change
+1.0 pts
Year-over-year change
-0.4 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 | $7.1B | $5.5B | $1.6B | 77.8% |
| Dec 31, 2023 | $7.1B | $5.0B | $2.1B | 70.6% |
| Mar 31, 2024 | $6.7B | $5.1B | $1.6B | 76.8% |
| Jun 30, 2024 | $7.0B | $5.4B | $1.5B | 77.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
+1.0 pts
Year-over-year change
Jun 30, 2023
-0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The improvement in gross margin from the prior quarter was driven by a larger increase in revenue relative to the change in cost of revenue. The year-over-year comparison shows a slightly lower gross margin despite higher revenue, indicating that cost of revenue increased at a somewhat faster pace than revenue.
Gross margin improved compared to the immediately preceding quarter, moving from a lower level to a higher one. Compared to the same quarter one year earlier, gross margin was slightly lower, indicating a marginal weakening.
Monitor the trajectory of cost of revenue relative to revenue, as a smaller revenue increase relative to cost growth could pressure gross margin.