JABIL INC stock research
FY2024 Q2
JABIL (JBL) Gross Margin — Quarter Ended Feb 29, 2024
Revenue decreased compared to both the prior quarter and the same quarter last year, while gross profit declined from the prior quarter but was higher than a year ago. Cost of revenue fell relative to both periods, and gross margin improved versus the prior quarter and showed a larger improvement compared to the same quarter last year.
Gross margin takeaway
Quarter ended Feb 29, 2024 · FY2024 Q2
Revenue decreased compared to both the prior quarter and the same quarter last year, while gross profit declined from the prior quarter but was higher than a year ago. Cost of revenue fell relative to both periods, and gross margin improved versus the prior quarter and showed a larger improvement compared to the same quarter last year.
- Gross margin strengthened sequentially and year-over-year, driven by a proportionally larger decline in cost of revenue relative to revenue. The strongest observable driver is the reduction in cost of revenue, which outpaced the revenue decline.
- Compared to the immediately preceding quarter, revenue was lower and gross profit was lower, but gross margin was slightly higher. Compared to the same quarter one year earlier, revenue was lower, gross profit was higher, and gross margin was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
9.3%
Gross profit
$630.0M
Revenue
$6.8B
Cost of revenue
$6.1B
Quarter-over-quarter change
+0.1 pts
Year-over-year change
+1.2 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 |
|---|---|---|---|---|
| May 31, 2023 | $8.5B | $697.0M | $7.8B | 8.2% |
| Aug 31, 2023 | $8.5B | $766.0M | $7.7B | 9.1% |
| Nov 30, 2023 | $8.4B | $775.0M | $7.6B | 9.2% |
| Feb 29, 2024 | $6.8B | $630.0M | $6.1B | 9.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Nov 30, 2023
+0.1 pts
Year-over-year change
Feb 28, 2023
+1.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin strengthened sequentially and year-over-year, driven by a proportionally larger decline in cost of revenue relative to revenue. The strongest observable driver is the reduction in cost of revenue, which outpaced the revenue decline.
Compared to the immediately preceding quarter, revenue was lower and gross profit was lower, but gross margin was slightly higher. Compared to the same quarter one year earlier, revenue was lower, gross profit was higher, and gross margin was higher.
Monitor the trajectory of cost of revenue relative to revenue, as its decline was the primary factor behind the gross margin improvement.