Johnson Controls International plc stock research
FY2024 Q3
Johnson Controls International (JCI) Gross Margin — Quarter Ended Jun 30, 2024
Revenue and gross profit both increased compared to the prior quarter, while cost of revenue rose at a slower pace, leading to an improved gross margin. Compared to the same quarter last year, revenue and gross profit were lower, but gross margin strengthened as cost of revenue declined more sharply.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q3
Revenue and gross profit both increased compared to the prior quarter, while cost of revenue rose at a slower pace, leading to an improved gross margin. Compared to the same quarter last year, revenue and gross profit were lower, but gross margin strengthened as cost of revenue declined more sharply.
- The gross margin improved sequentially and year-over-year, driven by a higher gross profit relative to revenue. The strongest observable driver is the reduction in cost of revenue as a share of revenue.
- Compared to the prior quarter, revenue and gross profit were higher, and gross margin improved. Versus the same quarter last year, revenue and gross profit were lower, but gross margin was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
35.8%
Gross profit
$2.1B
Revenue
$5.9B
Cost of revenue
$3.8B
Quarter-over-quarter change
+1.4 pts
Year-over-year change
+1.7 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 |
|---|---|---|---|---|
| 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% |
| Jun 30, 2024 | $5.9B | $2.1B | $3.8B | 35.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
+1.4 pts
Year-over-year change
Jun 30, 2023
+1.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved sequentially and year-over-year, driven by a higher gross profit relative to revenue. The strongest observable driver is the reduction in cost of revenue as a share of revenue.
Compared to the prior quarter, revenue and gross profit were higher, and gross margin improved. Versus the same quarter last year, revenue and gross profit were lower, but gross margin was higher.
Monitor the trend in cost of revenue relative to revenue, as its decline was the primary factor behind the margin improvement.