HP Inc. stock research
FY2024 Q4
HP (HPQ) Gross Margin — Quarter Ended Oct 31, 2024
Revenue and cost of revenue both increased compared to the prior quarter, while gross profit rose slightly; gross margin decreased marginally. Versus the same quarter one year earlier, revenue and cost of revenue were higher, gross profit was essentially flat, and gross margin was slightly lower.
Gross margin takeaway
Quarter ended Oct 31, 2024 · FY2024 Q4
Revenue and cost of revenue both increased compared to the prior quarter, while gross profit rose slightly; gross margin decreased marginally. Versus the same quarter one year earlier, revenue and cost of revenue were higher, gross profit was essentially flat, and gross margin was slightly lower.
- The relationship between revenue and cost of revenue shows that cost growth slightly outpaced revenue growth, resulting in a modest gross margin decline. The prior quarter and year-ago quarter both exhibited similar gross margin levels, indicating stable underlying cost structure relative to revenue.
- Compared to the preceding quarter, gross margin was essentially flat with a very slight decline. Compared to the same quarter one year ago, gross margin also showed a minor reduction. In both comparisons, gross profit was relatively stable, with changes in revenue and cost of revenue moving in the same direction.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
21.4%
Gross profit
$3.0B
Revenue
$14.1B
Cost of revenue
$11.1B
Quarter-over-quarter change
-0.1 pts
Year-over-year change
-0.3 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 |
|---|---|---|---|---|
| Jan 31, 2024 | $13.2B | $2.9B | $10.3B | 21.9% |
| Apr 30, 2024 | $12.8B | $3.0B | $9.8B | 23.6% |
| Jul 31, 2024 | $13.5B | $2.9B | $10.6B | 21.5% |
| Oct 31, 2024 | $14.1B | $3.0B | $11.1B | 21.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jul 31, 2024
-0.1 pts
Year-over-year change
Oct 31, 2023
-0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The relationship between revenue and cost of revenue shows that cost growth slightly outpaced revenue growth, resulting in a modest gross margin decline. The prior quarter and year-ago quarter both exhibited similar gross margin levels, indicating stable underlying cost structure relative to revenue.
Compared to the preceding quarter, gross margin was essentially flat with a very slight decline. Compared to the same quarter one year ago, gross margin also showed a minor reduction. In both comparisons, gross profit was relatively stable, with changes in revenue and cost of revenue moving in the same direction.
Monitor the trend in cost of revenue relative to revenue, as small changes in this relationship could affect gross margin in coming quarters.