International Business Machines Corporation stock research
FY2024 Q4
International Business Machines (IBM) Gross Margin — Quarter Ended Dec 31, 2024
In the current quarter, revenue and gross profit both increased compared to the previous quarter and the same quarter last year, while cost of revenue was higher than the previous quarter but unchanged from a year ago. Gross margin improved sequentially and was slightly higher than the prior year.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
In the current quarter, revenue and gross profit both increased compared to the previous quarter and the same quarter last year, while cost of revenue was higher than the previous quarter but unchanged from a year ago. Gross margin improved sequentially and was slightly higher than the prior year.
- The gross margin rate is higher than both the immediately preceding quarter and the same quarter one year earlier, with revenue increasing more than cost of revenue from the prior quarter.
- Compared to the preceding quarter, gross margin improved, and compared to the same quarter one year ago, gross margin was slightly higher. Revenue and gross profit were higher in both comparisons, while cost of revenue was higher than the previous quarter but equal to the year-ago level.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
59.5%
Gross profit
$10.4B
Revenue
$17.6B
Cost of revenue
$7.1B
Quarter-over-quarter change
+3.2 pts
Year-over-year change
+0.4 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 |
|---|---|---|---|---|
| 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% |
| Dec 31, 2024 | $17.6B | $10.4B | $7.1B | 59.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
+3.2 pts
Year-over-year change
Dec 31, 2023
+0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin rate is higher than both the immediately preceding quarter and the same quarter one year earlier, with revenue increasing more than cost of revenue from the prior quarter.
Compared to the preceding quarter, gross margin improved, and compared to the same quarter one year ago, gross margin was slightly higher. Revenue and gross profit were higher in both comparisons, while cost of revenue was higher than the previous quarter but equal to the year-ago level.
Monitor the trajectory of cost of revenue, which remained flat year-over-year despite revenue growth.