JABIL INC stock research
FY2024 Q3
JABIL (JBL) Gross Margin — Quarter Ended May 31, 2024
Revenue remained stable compared to the prior quarter, but gross profit declined and cost of revenue increased, resulting in a lower gross margin. Relative to the same quarter last year, revenue was lower, yet gross profit decreased less proportionally, leading to an improved gross margin.
Gross margin takeaway
Quarter ended May 31, 2024 · FY2024 Q3
Revenue remained stable compared to the prior quarter, but gross profit declined and cost of revenue increased, resulting in a lower gross margin. Relative to the same quarter last year, revenue was lower, yet gross profit decreased less proportionally, leading to an improved gross margin.
- The gross margin change was driven by the shift in the proportion of cost of revenue relative to revenue. Sequentially, cost of revenue claimed a larger share of revenue, while year over year it claimed a smaller share.
- Compared to the immediately preceding quarter, gross margin weakened. Compared to the same quarter one year earlier, gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
9.0%
Gross profit
$608.0M
Revenue
$6.8B
Cost of revenue
$6.2B
Quarter-over-quarter change
-0.3 pts
Year-over-year change
+0.8 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 |
|---|---|---|---|---|
| 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% |
| May 31, 2024 | $6.8B | $608.0M | $6.2B | 9.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Feb 29, 2024
-0.3 pts
Year-over-year change
May 31, 2023
+0.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin change was driven by the shift in the proportion of cost of revenue relative to revenue. Sequentially, cost of revenue claimed a larger share of revenue, while year over year it claimed a smaller share.
Compared to the immediately preceding quarter, gross margin weakened. Compared to the same quarter one year earlier, gross margin improved.
Monitor the proportion of cost of revenue relative to revenue in upcoming quarters.