HP Inc. stock research
FY2024 Q2
HP (HPQ) Gross Margin — Quarter Ended Apr 30, 2024
Revenue decreased versus the prior quarter while gross profit increased, resulting in an improved gross margin. Compared to the same quarter one year earlier, revenue was slightly lower but gross profit was higher, leading to a strengthened gross margin.
Gross margin takeaway
Quarter ended Apr 30, 2024 · FY2024 Q2
Revenue decreased versus the prior quarter while gross profit increased, resulting in an improved gross margin. Compared to the same quarter one year earlier, revenue was slightly lower but gross profit was higher, leading to a strengthened gross margin.
- Gross profit rose while cost of revenue fell sequentially, which was the primary observable factor behind the sequential margin improvement.
- Versus the prior quarter, the gross margin improved, driven by a lower cost of revenue alongside higher gross profit. Versus the year-ago quarter, the gross margin also strengthened, as gross profit increased despite a slightly lower revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
23.6%
Gross profit
$3.0B
Revenue
$12.8B
Cost of revenue
$9.8B
Quarter-over-quarter change
+1.7 pts
Year-over-year change
+1.0 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 |
|---|---|---|---|---|
| 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% |
| Apr 30, 2024 | $12.8B | $3.0B | $9.8B | 23.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jan 31, 2024
+1.7 pts
Year-over-year change
Apr 30, 2023
+1.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit rose while cost of revenue fell sequentially, which was the primary observable factor behind the sequential margin improvement.
Versus the prior quarter, the gross margin improved, driven by a lower cost of revenue alongside higher gross profit. Versus the year-ago quarter, the gross margin also strengthened, as gross profit increased despite a slightly lower revenue.
Monitor the trend in cost of revenue, as its sequential decline was the key factor supporting margin expansion.