HP Inc. stock research
FY2024 Q1
HP (HPQ) Gross Margin — Quarter Ended Jan 31, 2024
Revenue decreased from the prior quarter and the year-ago quarter, while cost of revenue declined by a larger proportion, causing gross profit to fall slightly but gross margin to improve. The current quarter's gross margin is higher than both the immediately preceding quarter and the same quarter one year earlier.
Gross margin takeaway
Quarter ended Jan 31, 2024 · FY2024 Q1
Revenue decreased from the prior quarter and the year-ago quarter, while cost of revenue declined by a larger proportion, causing gross profit to fall slightly but gross margin to improve. The current quarter's gross margin is higher than both the immediately preceding quarter and the same quarter one year earlier.
- The most observable margin driver is the larger reduction in cost of revenue relative to the decline in revenue, which directly improved gross margin.
- Compared to the prior quarter, gross margin improved from a lower level; compared to the same quarter last year, gross margin also improved from a lower base.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
21.9%
Gross profit
$2.9B
Revenue
$13.2B
Cost of revenue
$10.3B
Quarter-over-quarter change
+0.3 pts
Year-over-year change
+1.7 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 |
|---|---|---|---|---|
| Apr 30, 2023 | $12.9B | $2.9B | $10.0B | 22.6% |
| Jul 31, 2023 | $13.2B | $2.8B | $10.4B | 21.4% |
| Oct 31, 2023 | $13.8B | $3.0B | $10.8B | 21.6% |
| Jan 31, 2024 | $13.2B | $2.9B | $10.3B | 21.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Oct 31, 2023
+0.3 pts
Year-over-year change
Jan 31, 2023
+1.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable margin driver is the larger reduction in cost of revenue relative to the decline in revenue, which directly improved gross margin.
Compared to the prior quarter, gross margin improved from a lower level; compared to the same quarter last year, gross margin also improved from a lower base.
Monitor the trend of cost of revenue relative to revenue in upcoming quarters.