International Business Machines Corporation stock research
FY2024 Q2
International Business Machines (IBM) Gross Margin — Quarter Ended Jun 30, 2024
Revenue increased while cost of revenue rose less, resulting in a higher gross profit and an improved gross margin. The gross margin strengthened compared to both the prior quarter and the same quarter last year.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
Revenue increased while cost of revenue rose less, resulting in a higher gross profit and an improved gross margin. The gross margin strengthened compared to both the prior quarter and the same quarter last year.
- The strongest observable driver is the faster growth of gross profit relative to revenue, which lifted the gross margin. This reflects a favorable relationship between revenue and cost of revenue.
- Compared with the immediately preceding quarter, revenue, gross profit, and gross margin were all higher, while cost of revenue was slightly higher. Versus the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was lower, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
56.8%
Gross profit
$8.9B
Revenue
$15.8B
Cost of revenue
$6.8B
Quarter-over-quarter change
+3.2 pts
Year-over-year change
+1.8 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 | $14.8B | $8.0B | $6.7B | 54.4% |
| Dec 31, 2023 | $17.4B | $10.3B | $7.1B | 59.1% |
| Mar 31, 2024 | $14.5B | $7.7B | $6.7B | 53.5% |
| Jun 30, 2024 | $15.8B | $8.9B | $6.8B | 56.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
+3.2 pts
Year-over-year change
Jun 30, 2023
+1.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the faster growth of gross profit relative to revenue, which lifted the gross margin. This reflects a favorable relationship between revenue and cost of revenue.
Compared with the immediately preceding quarter, revenue, gross profit, and gross margin were all higher, while cost of revenue was slightly higher. Versus the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was lower, and gross margin improved.
Monitor the trend in the ratio of cost of revenue to revenue, as it directly influences gross margin direction.