Johnson Controls International plc stock research
FY2024 Q2
Johnson Controls International (JCI) Gross Margin — Quarter Ended Mar 31, 2024
Revenue and gross profit both increased compared to the prior quarter, while cost of revenue also rose. Gross margin improved slightly, reflecting a stable relationship between these metrics.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q2
Revenue and gross profit both increased compared to the prior quarter, while cost of revenue also rose. Gross margin improved slightly, reflecting a stable relationship between these metrics.
- The strongest observable margin driver is the increase in gross profit relative to revenue, which led to a higher gross margin. This suggests that cost of revenue grew at a slower pace than revenue.
- Compared to the prior quarter, revenue and gross profit were higher, while gross margin improved slightly. Versus the same quarter last year, revenue and gross profit were lower, but gross margin was higher, indicating a shift in the cost structure.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
34.3%
Gross profit
$1.9B
Revenue
$5.6B
Cost of revenue
$3.7B
Quarter-over-quarter change
+0.2 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 |
|---|---|---|---|---|
| Jun 30, 2023 | $7.1B | $2.4B | $4.7B | 34.1% |
| Sep 30, 2023 | $2.4B | $1.0B | $1.4B | 42.6% |
| Dec 31, 2023 | $5.2B | $1.8B | $3.4B | 34.1% |
| Mar 31, 2024 | $5.6B | $1.9B | $3.7B | 34.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
+0.2 pts
Year-over-year change
Mar 31, 2023
+0.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the increase in gross profit relative to revenue, which led to a higher gross margin. This suggests that cost of revenue grew at a slower pace than revenue.
Compared to the prior quarter, revenue and gross profit were higher, while gross margin improved slightly. Versus the same quarter last year, revenue and gross profit were lower, but gross margin was higher, indicating a shift in the cost structure.
Monitor the trend in cost of revenue relative to revenue, as it is a key factor influencing gross margin stability.