International Business Machines Corporation stock research
FY2024 Q3
International Business Machines (IBM) Gross Margin — Quarter Ended Sep 30, 2024
Revenue decreased compared to the prior quarter, while gross profit and cost of revenue also declined. Gross margin weakened slightly from the prior quarter but improved compared to the same quarter one year earlier.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue decreased compared to the prior quarter, while gross profit and cost of revenue also declined. Gross margin weakened slightly from the prior quarter but improved compared to the same quarter one year earlier.
- The gross margin improved year-over-year, driven by a larger proportional decline in cost of revenue relative to revenue. This indicates a favorable shift in the relationship between revenue and cost of revenue.
- Compared to the prior quarter, revenue, gross profit, and cost of revenue were all lower, and gross margin weakened slightly. Compared to the same quarter one year ago, 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
56.3%
Gross profit
$8.4B
Revenue
$15.0B
Cost of revenue
$6.5B
Quarter-over-quarter change
-0.5 pts
Year-over-year change
+1.9 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 |
|---|---|---|---|---|
| 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% |
| Sep 30, 2024 | $15.0B | $8.4B | $6.5B | 56.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
-0.5 pts
Year-over-year change
Sep 30, 2023
+1.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved year-over-year, driven by a larger proportional decline in cost of revenue relative to revenue. This indicates a favorable shift in the relationship between revenue and cost of revenue.
Compared to the prior quarter, revenue, gross profit, and cost of revenue were all lower, and gross margin weakened slightly. Compared to the same quarter one year ago, revenue and gross profit were higher, cost of revenue was lower, and gross margin improved.
Monitor whether the year-over-year improvement in gross margin can be sustained if revenue growth resumes.