Corning Incorporated stock research
FY2024 Q2
Corning (GLW) Gross Margin — Quarter Ended Jun 30, 2024
Revenue grew compared to both the prior quarter and the same quarter a year earlier, but gross profit declined, resulting in a lower gross margin. The increase in cost of revenue outpaced the revenue growth, compressing margins.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
Revenue grew compared to both the prior quarter and the same quarter a year earlier, but gross profit declined, resulting in a lower gross margin. The increase in cost of revenue outpaced the revenue growth, compressing margins.
- The strongest observable driver is the rise in cost of revenue relative to revenue. Cost of revenue increased substantially from both the prior quarter and the year-ago quarter, while revenue increased only modestly.
- Compared to the immediately preceding quarter, gross margin weakened as revenue growth was outweighed by a larger increase in cost of revenue. Year-over-year, gross margin also weakened, with gross profit lower despite slightly higher revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
29.2%
Gross profit
$949.0M
Revenue
$3.3B
Cost of revenue
$2.3B
Quarter-over-quarter change
-4.2 pts
Year-over-year change
-2.0 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 | $3.2B | $1.0B | $2.2B | 31.6% |
| Dec 31, 2023 | $3.0B | $911.0M | $2.1B | 30.4% |
| Mar 31, 2024 | $3.0B | $993.0M | $2.0B | 33.4% |
| Jun 30, 2024 | $3.3B | $949.0M | $2.3B | 29.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
-4.2 pts
Year-over-year change
Jun 30, 2023
-2.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the rise in cost of revenue relative to revenue. Cost of revenue increased substantially from both the prior quarter and the year-ago quarter, while revenue increased only modestly.
Compared to the immediately preceding quarter, gross margin weakened as revenue growth was outweighed by a larger increase in cost of revenue. Year-over-year, gross margin also weakened, with gross profit lower despite slightly higher revenue.
Monitor the trajectory of cost of revenue growth relative to revenue growth in upcoming quarters.