IR

Ingersoll Rand Inc. stock research

Sep 30, 2024

FY2024 Q3

Ingersoll Rand (IR) Gross Margin — Quarter Ended Sep 30, 2024

Current quarter revenue and gross profit were higher than both the prior quarter and the same quarter last year. Gross margin was slightly weakened compared to the prior quarter but improved compared to the year-ago period.

Gross margin takeaway

Quarter ended Sep 30, 2024 · FY2024 Q3

Current quarter revenue and gross profit were higher than both the prior quarter and the same quarter last year. Gross margin was slightly weakened compared to the prior quarter but improved compared to the year-ago period.

  • The strongest observable driver is the relationship between revenue and cost of revenue, where revenue increased while cost of revenue remained relatively stable, supporting gross profit growth.
  • Compared to the immediately preceding quarter, revenue increased and gross profit increased, but gross margin was slightly lower. Compared to the same quarter one year earlier, revenue, gross profit, and gross margin were all higher.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

43.8%

Gross profit

$815.0M

Revenue

$1.9B

Cost of revenue

$1.0B

Quarter-over-quarter change

-0.1 pts

Year-over-year change

+1.3 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Dec 31, 2023$1.8B$781.2M$1.0B42.9%
Mar 31, 2024$1.7B$746.3M$923.8M44.7%
Jun 30, 2024$1.8B$793.3M$1.0B43.9%
Sep 30, 2024$1.9B$815.0M$1.0B43.8%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Jun 30, 2024

-0.1 pts

Year-over-year change

Sep 30, 2023

+1.3 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The strongest observable driver is the relationship between revenue and cost of revenue, where revenue increased while cost of revenue remained relatively stable, supporting gross profit growth.

Compared to the immediately preceding quarter, revenue increased and gross profit increased, but gross margin was slightly lower. Compared to the same quarter one year earlier, revenue, gross profit, and gross margin were all higher.

Monitor the stability of cost of revenue, as it remained nearly unchanged while revenue grew.